Russia to cut oil and gas condensate production by 20 million tons – Kommersant

This year, Russia will reduce oil and gas condensate production to 515 million tons, which is 20 million tons less than in 2022, Deputy Prime Minister Alexander Novak said. According to him, the export of oil and oil products from Russia to Europe in 2023 will fall by 2.5 times, and 140 million tons of raw materials will be redirected to Asian markets.

“The total production that we forecast is 515 million tons, including gas condensate. Compared to last year, we had 535 million tons, that is, it is minus 20 million tons,” Alexander Novak said at a briefing after a meeting of the Board of Trustees of the Moscow Energy Institute.

As the Deputy Prime Minister noted, at this stage, Russia does not see the need for an additional reduction in oil production by the OPEC+ countries and does not expect a shortage in the oil market due to the decision. According to him, the world oil market is currently balanced.

In addition, the Deputy Prime Minister said that in fact the discount of Urals oil to Brent is lower than the minimum: for example, the discount on North Sea oil in the Baltic ports, according to him, is now $26-27 per barrel.

This month Russia and seven other countries announced on voluntary cuts in oil production. Russia from May until the end of the year will reduce production by 500 thousand barrels per day. Minister of Energy Nikolai Shulginov saidthat the reduction in oil production will affect the price in the second half of 2023.

Yesterday, April 26, in the Rosstat report on the situation in the industry, data for the first quarter on oil production in Russia did not appear. The department has not yet commented on this fact.

Anastasia Larina