CDU TEK has published its Russian oil and gas production for June. Crude production slightly rose 0.2% YoY to 10.5mmb/d, with Bashneft (+12.4% YoY) and Gazprom Neft (+4.7% YoY) among the leaders. Bashneft’s production growth YoY figure continues to rise, while Gazprom Neft’s production is approximately at the previous month’s level.
Gas production was up 3% to 1.548bcm/d in June if compared with the previous year’s production, with Gazprom almost flat (-0.2% YoY). Novatek’s production, excluding joint ventures, increased 10.3% YoY. Rosneft’s gas production increased a significant 25.6% YoY while Surgutneftegas continued its declining trend with a 26.7% YoY production decrease.
Bashneft’s production showed positive dynamics, up 12.4% YoY, mainly driven by the launch of the Trebs and Titov fields in 4Q13 and the acquisition of Burneftegas in 1Q14. Gazprom Neft’s production growth was mainly driven by the Yugra assets, Zapolyarneft, Orenburg assets and the launch of the Prirazlomnoye field at the end of 2013. Lukoil’s production was almost flat (-0.1% YoY).
Russian gas production increased 3% YoY in June. Novatek (excluding joint ventures) demonstrated a 10.3% YoY increase while showing only a 2.7% YTD rise in 1H14. The company overcame poor gas production dynamics in the previous months, despite having downgraded its FY14 forecast to 2-3% from 7-9% previously due to a fire at its Severenergia JV Urengoyskoe field. Gazprom was almost flat on a YoY basis: -0.2%. Rosneft shows strong growth in gas production at 26% YoY and 24% YTD (although dropped 36% MoM to the current year average gas production due to extraordinarily high production in May). Surgutneftegas continues to show poor gas production dynamics at -23% YTD, broadly in line with the company’s guidance (-23% YoY in 2014) due to gas exhaustion in the gas-cap reservoirs at the company’s Western Siberian oil fields.