Russian oil output jumps 4 pct in September to a new record

Russian oil output jumps 4 pct in September to a new record

MOSCOW - Reuters
Russian oil output jumps 4 pct in September to a new record

REU Photo

Workers look at a drilling rig of the Rosneft-owned Prirazlomnoye oil field outside Nefteyugansk, Russia. Russia’s oil outpur reached 45.483 miilion tons in September.
Russian oil output jumped by almost 4 percent in September from the previous month to 11.11 million barrels per day (mbp), a new post-Soviet record-high, as companies ramped up drilling amid improved oil prices, Energy Ministry data showed yesterday.

The oil output rose amid the talks between the leading global producers, including Russia, to curb production in order to support oil prices, depressed by oversupply.

Russian Energy Minister Alexander Novak said on Sept. 30 that Russia will find mechanisms and instruments needed to freeze oil production should the country reach an agreement with the Organization of the Petroleum Exporting Countries (OPEC) on limiting output.

His comments were aired as OPEC agreed on Sept. 28 modest oil output cuts in the first such deal since 2008, with the group’s leader Saudi Arabia softening its stance on archrival Iran amid mounting pressure from low oil prices. 

In tons, Russian oil output reached 45.483 million versus 45.309 million in August. Last month, oil output in million barrels per day stood at 10.71. 

The rise was led by world’s top listed oil producer, Rosneft, whose output rose by 2.6 percent month-on-month, as well as Gazprom Neft, which showed a 5.2 percent jump in production last month.

The oil prices have been volatile recently and broke through the $50 per barrel mark last week for the first time since July after the OPEC deal. It fell to as low as $27.88 in January, spurring talks over global output freeze.

The jump in Russian production comes not only thanks to conventional oil deposits but also as Kremlin oil champions Rosneft and Gazprom Neft are increasing output of hard-to-extract oil, despite Western sanctions on Russian shale projects. 

Natural gas production in Russia was at 51.33 billion cubic meters (bcm) last month, or 1.71 bcm a day, versus 45.29 bcm in August.