commissioning of oil wells in Russia increased by 16.5% in April – Kommersant

In April 2023, 627 oil wells were commissioned in Russia. Compared to the same period in 2022, the indicator increased by 16.5%, according to Vedomosti with reference to two sources familiar with the statistics of the Ministry of Energy. Vertically integrated oil companies (VIOCs) grew by 15.5% (commissioned 559 wells), other producers — by 25% (65 wells).

According to the publication, from the beginning of January to the end of April, the commissioning of oil wells in Russia increased by 11% in annual terms, to 2,628 units. In general, the increase in indicators was due to VIOCs, which increased commissioning by 12%, to 2388. The indicators of other producers, including independent oil companies, increased by 4%, to 238 wells. In the first four months of 2023, three wells were commissioned by Novatek, one by Sakhalin Energy, the operator of the Sakhalin-2 project.

The press service of the Ministry of Energy specified that Russian companies are drilling production wells as part of production and investment programs to maintain current levels of oil production. According to the ministry, exploration drilling in Russia has been increasing since 2015.

The commissioning of new wells is increasing against the backdrop of a voluntary reduction in oil production in Russia. In February, Deputy Prime Minister Alexander Novak announced that Russia would cut oil production by 500,000 barrels per day in March. Then cut was extended until the end of 2023.

Russia, Saudi Arabia, Iraq, UAE, Kuwait and other OPEC+ countries agreed on a reduction in production in May by a total of 1.6 million barrels per day. Mr. Novak announced the achievement of the target level at the end of April. However, the OPEC report saidthat in March Russia reduced production by only 300 thousand barrels per day.