Russian oil output reached 11.36 million barrels per day (MMbbl/d) in September, a post-Soviet high helped by higher production from Rosneft and foreign-led projects, Energy Ministry data showed on Oct. 2.
It rose from 11.21 MMbbl/d in August and topped the record high 11.247 MMbbl/d hit in October 2016 which served as Russia’s baseline for a deal curbing output alongside other producers which began in January 2017 aimed at stabilizing the oil markets.
In tonnes, oil output slipped to 46.478 MMbbl/d from 47.41 MMbbl/d in August as September is a shorter month.
Russian oil output surged as OPEC and other large global oil producers led by Russia agreed in June to ease production curbs and stick to the initial levels of output, in line with a 2016 Vienna agreement.
OPEC producers delivered only a limited increase in oil production last month, a Reuters survey has found, as a cut in Iranian shipments due to U.S. sanctions offset higher output in Libya, Saudi Arabia and Angola.
Output increases have been facilitated by stronger oil prices as markets prepare for tighter supply once U.S. sanctions against Iran kick in next month. Brent crude oil futures have risen by around 20% from lows in August to over $85/bbl, a four-year high.
Russian Energy Minister Alexander Novak has said a price of $70/bbl to$80/bbl is good for both producers and consumers.
According to the Russian Energy Ministry, oil production at Rosneft, the world’s largest listed oil company by output, jumped by 1.5% from August to almost 4 MMbbl/d.
Russia’s overall oil production was also supported by an increase at the production-sharing agreement (PSA) projects by more than 20% to 1.6 million tonnes (390,000 bbl/d). The ministry did not provide a breakdown of data for each PSA project.
Oil output at the Sakhalin-1 project, led by U.S. major ExxonMobil (NYSE: XOM) rose to about 250,000 bbl/d from 200,000 bbl/d, according to ONGC Videsh, which owns a 20% stake in the consortium. Russian oil pipeline exports in September stood at 4.278 MMbbl/d, down from 4.343 MMbbl/d in August. Russian natural gas production of 57.54 billion cubic meters (Bcm) last month, or 1.92 Bcm a day, was up from 54.62 Bcm in August.