Weekly HEG Global Energy Digest
CEO: Rosneft has capacity to lift oil production by the end of 2018
Russia’s largest oil producer Rosneft has the capacity to increase its crude oil production by the end of 2018 and will have additional capacity available in 2019, chief executive Igor Sechin said on Thursday.
As the biggest Russian oil producer, Rosneft was responsible for a large part of Russia’s production cut of 300,000 bpd under the deal with OPEC to withhold supply to boost prices.
According to Platts estimates, Rosneft raised its oil production to 4.444 million bpd in September from 4.261 million bpd in May, a rise of 183,000 bpd since the June agreement.
In September, Russia’s total oil production reached 11.36 million bpd—a record high for the post-Soviet era.
Although Russia hit a post-Soviet record in its oil production last month, it doesn’t plan to raise output to 12 million bpd by the end of 2018, or in the near term, because this wouldn’t fit Moscow’s economic development plans, Energy Minister Alexander Novak said earlier this week.
This month, Russia’s oil production is around 150,000 bpd higher than its October 2016 level—the baseline for the OPEC+ production cut deal, Novak told TASS news agency on Tuesday. Currently, Russia is pumping 150,000 bpd above the October 2016 level, so in total, the country has increased production by 450,000 bpd since May, Novak said.
Russia can bring “a couple of hundred thousand barrels” in the short term, by December this year, the minister told Bloomberg in an interview at the end of September.
Article Source: https://www.energymarketprice.com/energy-news/ceo-rosneft-has-capacity-to-lift-oil-production-by-the-end-of-2018
Exxon, Roseneft to build LNG plant with Japanses, Indian partners
Russia’s Rosneft and US ExxonMobil plan to build a liquefied natural gas (LNG) plant in a consortium with Indian and Japanese partners, spreading the estimated $15 billion cost, two sources familiar with the talks said.
The four companies – Rosneft, Exxon, Japan’s SODECO and India’s ONGC Videsh – are partners in the Sakhalin-1 group of fields that will supply the gas, but Exxon and Rosneft had initially planned to build the LNG plant without the other consortium members.
Initially, Rosneft and Exxon unveiled their joint plans to build an LNG production site in Russia’s Far East to President Vladimir Putin in 2013.
LNG production itself is not subject to sanctions, but Russian companies have limited access to financial markets due to the restrictions. Exxon had to leave most of its other new joint projects with Rosneft due to the West’s punitive measures against Moscow.
Sakhalin-1, a hydrocarbon project, is led by Exxon with a 30 percent stake. Twenty percent belongs to Rosneft, with the rest split between SODECO (30 percent) and ONGC Videsh (20 percent).
Sakhalin-1 is pumping close to 300,000 barrels of crude oil per day, a record high, as well as natural gas that it has been unable to sell abroad. Gazprom has the exclusive rights to export pipeline gas from Russia.
Article Source: https://www.energymarketprice.com/energy-news/exxon–rosneft-to-build-lng-plant-with-japanese–indian-partners