MOSCOW—Russia’s oil and gas condensate production fell to 9.42 MMbbl/d during May 1 to 19 as a global deal on reducing output took effect, two sources familiar with the data told Reuters.
The deal on curbing crude output reached between OPEC, Russia and other producers, a group known as OPEC+, took effect on May 1.
Gas condensate, a type of light oil not included in the OPEC+ pact, accounts for 700,000-800,000 bbl/d of Russia’s combined liquids production, so output of just oil was about 8.72 MMbbl/d. That is close to its OPEC+ quota of 8.5 MMbbl/d of oil.
Russia oil and condensates output was 11.35 MMbbl/d in April and was averaging 9.43 MMbbl/d earlier in May.
The energy ministry did not reply to a Reuters request for a comment.
The energy ministry told companies to cut production by 20% each, with no exceptions for big projects led by foreign firms. Regions with the highest oil output face the toughest burden because of the concentration of assets there.
Khanty-Mansiysk, one of Russia’s top producing provinces with output roughly the same as the U.S. state of Texas, cut production by 15% to 4 MMbbl/d. To protect jobs and revenues, it has asked other regions to shoulder some of its cuts.
But the energy ministry of Krasnoyarsk, another of Russia’s main oil provinces and home to the Vankor production area developed by Russia’s top oil company Rosneft, has said it was unlikely to help.
It told Reuters in an email that the region had been producing below levels it had originally planned to achieve before the OPEC+ cuts, due to depleting fields, and did not want to make extra reductions for other regions.
The company’s shares were down 5% after the news and have lost nearly 70% of their value this year.
Total had expected the oil price to be about $60 per barrel this year, but as the price is now about $30, it will leave the company with a much bigger shortfall, CEO Patrick Pouyanne said.
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