The 2018 Olympic year has kicked off with a change in the medallists for Russia’s oil industry. The leading oil producers now have a new player on the pedestal, with Gazprom Neft’s 2017 year-end results taking it to third place, knocking Surgutneftegaz off the champions’ podium.
According to its RAS (Russian Accounting Standards) year-end results, Surgutneftegaz produced 60.54 million tonnes of oil in 2017. The company had confirmed planned production of 61.4 million tonnes in 2018 — the standard planned production at Surgutneftegaz, announced annually for the last few years.
As advised to Interfax by Gazprom Neft, company production in 2017 totalled 62.3 million tonnes of oil, a
Commenting on this, Gazprom Neft CEO Alexander Dyukov told Interfax:
— “Gazprom Neft has been rapidly increasing production over the past few years — our strategic objective being to reach a level of 100 million tonnes of hydrocarbons per year. A major contribution to our company’s growth in oil production has been through the development of major new projects in the Arctic — the Novoportovskoye, Vostochno-Messoyakhskoye and Prirazlomnoye fields. We don’t just want to continue increasing production, we want to improve our efficiency and technological performance in doing so: it’s impossible to work with hard-to-recover reserves without this.”
The domestic oil industry’s “top three” — Rosneft, LUKOIL, Surgutneftegaz — has not changed in the last decade. Gazprom Neft itself — acquired by Gazprom in 2005 with production at just over 30 million tonnes — has taken even longer to join the list of prize winners. Future shareholder strategy for the gas concern’s oil offshoot is still more ambitious — Gazprom having recently announced that Gazprom Neft is only at the midpoint in its growth cycle.