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Lukoil´s 1Q hydrocarbon production fell due to the COVID-19 & lower gas supply to China

Lukoil´s 1Q hydrocarbon production fell due to the COVID-19 & lower gas supply to China

Moscow, May 21 - Neftegaz.RU. In the 1st quarter of 2020 Lukoil's daily hydrocarbon production (excluding the West Qurna-2 project) totaled 2,328 thousand boe per day, which is 2.1% lower year-on-year and 2.5% lower quarter-on-quarter.

The decline in production was driven by lower gas supply to China from projects in Uzbekistan due to lower demand because of coronavirus. The negative impact of this factor was partially offset by higher oil production at international projects.

Oil production in the 1st quarter of 2020 reached 21.4 million tonnes, which is 0.7% higher year-on-year. The growth was mainly driven by international projects due to acquisition of a share in the Marine XII project in Congo, as well as an increase in production share at PSA projects owing to decline in oil prices.

Oil production volumes and dynamics in Russia were defined by the external limitations of production volumes due to the OPEC+ agreement. As a result, production in Russia was almost flat year-on-year.

In the 1st quarter of 2020, Lukoil's gas production amounted to 8.4 billion cubic meters. Gas production in Russia increased by 5.9% year-on-year and by 1.1% quarter-on-quarter. The growth was attributed to the launch of the 2nd stage of the compressor booster station at the Nakhodkinskoye field in December 2019.

International gas production decreased by 18.0% year-on-year and by 22.2% quarter-on-quarter. The main decline factor was lower gas demand in China due to the coronavirus.

To read the full story in Russian.