MOSCOW—Russian oil output fell to 11.11 million barrels per day (MMbbl/d) in May, its lowest level since June 2018, from 11.23 MMbbl/d in April, Energy Ministry data showed on June 2.
The production fall resulted mainly from the closure due to oil contamination of Russia's Druzhba pipeline, which usually ships 1 MMbbl/d, or 1% of global oil demand.
As a result, Russian oil production during May fell by more than stipulated in a global deal with the Organization of the Petroleum Exporting Countries (OPEC).
The Energy Ministry data showed Russian oil pipeline exports in May fell to 4.209 MMbbl/d, from 4.494 MMbbl/d in April, as supplies via the Druzhba pipeline almost dried up, while seaborne exports jumped by 11.5%.
Russia expects to clean up the pipeline, which was built in the 1960s and carries Russian oil to Europe, including Germany, Hungary, Poland and Slovakia, within six to eight months.
June 2018 production was 11.06 MMbbl/d.
In tonnes, oil output reached 47.004 million in May versus 45.975 million in April, which is one day shorter than May. Reuters uses a tonnes/barrel ratio of 7.33.
Russia's largest oil producer Rosneft accounted for most of the cuts, with a month-on-month reduction of 2.9% in May, while domestic output at Russia's No.2 oil producer Lukoil edged up 0.7% last and Gazprom Neft boosted its output by 4.7%.
Both Lukoil and Gazprom Neft have their own exporting terminals in the Arctic.
OPEC and other large oil-producing countries led by Russia agreed to curb output by a combined 1.2 MMbbl/d for six months from Jan. 1, in order to balance the global oil market.
Of this, Russia pledged to cut its production by 228,000 bbl/d from the deal baseline of the October 2018 level, to 11.18 MMbbl/d.
OPEC and Russia are excepted to gather in Vienna later this month or in early July to discuss what to do in the second half of the year.
Top oil exporter Saudi Arabia has raised production in May, a Reuters survey found, but not by enough to compensate for lower Iranian exports that collapsed after the United States tightened the screw on Tehran.
The 14-member OPEC pumped 30.17 MMbbl/d May, down 60,000 bbl/d from April and the lowest OPEC total since 2015, the Reuters survey showed.
Oil prices slumped by more than 3% and posted their biggest monthly drop in six months on Friday after President Donald Trump stoked tensions by threatening tariffs on Mexico, a key U.S. trade partner and major crude oil supplier.
Russian natural gas production was at 63.28 billion cubic meters (Bcm) in May, 2.04 Bcm a day, versus 64.3 Bcm in April.
Norwegian Equinor ASA, Brazilian Enauta Participacoes SA, Compania Espanola de Petroleos S.A.U. and Petroleos de Portugal Petrogal SA, controlled by Galp Energia SGPS SA, are joining the bidders.
The memorandum of understanding (MoU), signed late Oct. 14, will be later signed as a definitive deal after Exxon Mobil studies the blocks of the company, one of the sources told Reuters.
The shale producer expects production from continuing operations to be 1.1 million to 1.12 million barrels of oil equivalent per day.