2020-08-10 11:05:00
LUKOIL PRODUCTION DOWN
LUKOIL - August 7, 2020 - For the six months of 2020 LUKOIL Group's average hydrocarbon production excluding the West Qurna-2 project was 2,155 thousand boe per day, which is 8.4% lower year-on-year as a result of a significant production cut in the second quarter of 2020. The cut was due to the new OPEC+ agreement and a decrease in gas supply from Uzbekistan to China, that were driven by a negative impact of the COVID-19 pandemic on hydrocarbon demand.
Hydrocarbon production, thousand boe per day
| 2Q 2020 | 1Q 2020 | 6M 2020 | 6M 2019 | |
|---|---|---|---|---|
| 1,981 | 2,328 | Total (excluding the West Qurna-2 project) | 2,155 | 2,352 |
Oil production excluding the West Qurna-2 project was 40.2 million tonnes for the six months of 2020, which is 5.6% lower year-on-year due to a 12% production cut in the second quarter of 2020 compared to the first quarter. The cut was due to the new OPEC+ agreement concluded in April 2020, that led to limitations on oil production by the Group in Russia and at some international projects.
Oil production, thousand tonnes
| 2Q 2020 | 1Q 2020 | 6M 2020 | 6M 2019 | |
|---|---|---|---|---|
| 18,815 | 21,384 | Total (excluding the West Qurna-2 project) | 40,199 | 42,598 |
| 17,877 | 20,365 | Russia | 38,242 | 40,787 |
| 17,758 | 20,227 | Subsidiaries | 37,985 | 40,481 |
| 119 | 138 | Share in affiliates | 257 | 306 |
| 938 | 1,019 | Outside of Russia | 1,957 | 1,811 |
| 565 | 588 | Subsidiaries | 1,153 | 960 |
| 373 | 431 | Share in affiliates | 804 | 851 |
| 1,065 | 721 | Compensation oil from the West Qurna-2 project | 1,786 | 775 |
| 19,880 | 22,105 | Total | 41,985 | 43,373 |
Despite a sharp decrease in oil prices and external limitations on production volumes, active development of the priority projects continued. In particular, in West Siberia overall oil and gas condensate production at the V. Vinogradov, Imilorskoye, Sredne-Nazymskoye and Pyakyakhinskoye fields increased for the six months of 2020 by 27% year-on-year and exceeded 2.0 million tonnes.
Further development of the Yaregskoye field and Permian reservoir of the Usinskoye field, including the launch of new steam-generation facilities, allowed to increase high viscosity oil production for the six months of 2020 by 4.5% year-on-year, to 2.5 million tonnes.
Implementation of drilling programs at the V. Filanovsky and Yu. Korchagin fields in the Caspian Sea allowed to maintain production at project levels. Total oil and gas condensate production at these fields for the six months of 2020 was 3.7 million tonnes, flat year-on-year.
The share of the abovementioned projects in the LUKOIL Group's oil production excluding the West Qurna-2 project amounted to 20% for the six months of 2020 as compared to 18% for the six months of 2019.
Gas production, million cubic meters
| 2Q 2020 | 1Q 2020 | 6M 2020 | 6M 2019 | |
|---|---|---|---|---|
| 6,396 | 8,412 | Total | 14,808 | 17,352 |
| 4,305 | 4,665 | Russia | 8,970 | 8,856 |
| 4,284 | 4,643 | Subsidiaries | 8,927 | 8,812 |
| 21 | 22 | Share in affiliates | 43 | 44 |
| 2,091 | 3,747 | Outside of Russia | 5,838 | 8,496 |
| 1,933 | 3,581 | Subsidiaries | 5,514 | 8,172 |
| 158 | 166 | Share in affiliates | 324 | 324 |
For the six months of 2020, LUKOIL Group's gas production was 14.8 billion cubic meters, which is 14.7% lower year-on-year. The decline was due to lower demand from China for gas produced in Uzbekistan amid the COVID-19 pandemic. At the same time gas production in Russia increased by 1.3% year-on-year driven by the launch of the second stage of the booster compressor station at the Nakhodkinskoye field in December 2019.
Refinery throughput, thousand tonnes
| 2Q 2020 | 1Q 2020 | 6M 2020 | 6M 2019 | |
|---|---|---|---|---|
| 13,525 | 17,090 | Total for LUKOIL Group refineries | 30,615 | 33,491 |
| 9,283 | 10,937 | Russia | 20,220 | 21,716 |
| 4,242 | 6,153 | Outside of Russia | 10,395 | 11,775 |
| 3,998 | 5,590 | Oil processing | 9,588 | 10,778 |
| 244 | 563 | Refined products processing | 807 | 997 |
| 24 | 53 | Third party refineries abroad | 77 | 3,231 |
For the six months of 2020 refinery throughput at LUKOIL Group's refineries was 30.6 million tonnes, which is 8.6% lower year-on-year. The decline was due to scheduled maintenance works and throughput optimization at some of the Company's refineries in the second quarter of 2020 on the back of lower demand for petroleum products and decline in refining margins due to the COVID-19 pandemic.
Refinery throughput in Russia for the six months of 2020 decreased by 6.9% due to scheduled maintenance works and throughput optimization at the Nizhny Novgorod and Ukhta refineries in the second quarter of 2020. At the same time, throughput at the Perm and Volgograd refineries remained unchanged compared to the first quarter of 2020. Refinery throughput in Europe for the six months of 2020 decreased by 11.7% due to scheduled maintenance works at refineries in Bulgaria and the Netherlands, as well as throughput optimization at European refineries in the second quarter of 2020.
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Earlier:
2020, June, 8, 12:50:00
LUKOIL NET LOSS RUB 46 BLN
In the first quarter of 2020, LUKOIL booked a loss attributable to shareholders in the amount of RUB 46.0 bln.
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2020, March, 11, 11:50:00
LUKOIL PROFIT UP 3.4%
In 2019, profit attributable to PJSC LUKOIL shareholders amounted to RUB 640.2 bln, 3.4% higher year-on-year. The growth was constrained by higher depreciation and lower non-cash foreign exchange gain.
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2020, February, 5, 10:15:00
LUKOIL PRODUCTION 2.4 MBD
In the fourth quarter of 2019 LUKOIL Group's average hydrocarbon production excluding the West Qurna-2 project was 2,388 thousand boe per day
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