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UPDATE 1-Russian oil output jumps 4 pct in September to a new record
October 2, 2016 / 9:11 AM / 10 months ago

UPDATE 1-Russian oil output jumps 4 pct in September to a new record

3 Min Read

* Russian oil output stood at 11.11 mln bpd in Sept
    * Further rise expected in 2017

 (Adds detail, analyst comments)
    By Vladimir Soldatkin
    MOSCOW, Oct 2 (Reuters) - Russian oil output jumped by
almost 4 percent in September from the previous month to 11.11
million barrels per day (mbp), a new post-Soviet record-high, as
companies ramped up drilling amid improved oil prices, Energy
Ministry data showed on Sunday.
    The oil output rose amid the talks between the leading
global producers, including Russia, to curb production in order
to support oil prices, depressed by oversupply.
    Russian Energy Minister Alexander Novak said on Friday that
Russia will find mechanisms and instruments needed to freeze oil
production should the country reach an agreement with the
Organization of the Petroleum Exporting Countries on limiting
output.
    His comments were aired as OPEC agreed on Wednesday modest
oil output cuts in the first such deal since 2008, with the
group's leader Saudi Arabia softening its stance on arch-rival
Iran amid mounting pressure from low oil prices. 
    In tonnes, Russian oil output reached 45.483 million versus
45.309 million in August. Last month, oil output in million
barrels per day stood at 10.71. 
    The rise was led by world's top listed oil producer, Rosneft
, whose output rose by 2.6 percent month-on-month, as
well as Gazprom Neft, which showed a 5.2 percent jump
in production last month.
    The oil prices have been volatile recently and broke
through the $50 per barrel mark last week for the first time
since July after the OPEC deal. It fell to as low as $27.88 in
January, spurring talks over global output freeze.
    The jump in Russian production comes not only thanks to
conventional oil deposits but also as Kremlin oil champions
Rosneft and Gazprom Neft are increasing output of
hard-to-extract oil, despite Western sanctions on Russian shale
projects. 
    Analysts from Swiss bank UBS forecast a rise of 2.7 percent
next year of Russia's overall oil production. 
    "Production growth is to be driven by new projects ramp-up
and better production management at conventional brownfields
(also supported by tax benefits)," they said last month.
    Russia's oil production peaked at 11.41 million bpd in 1988
when it was still part of the former Soviet Union, according to
the International Energy Agency. Russia accounted for 90 percent
of Soviet output.
    Natural gas production in Russia was at 51.33 billion cubic
metres (bcm) last month, or 1.71 bcm a day, versus 45.29 bcm in
August.

 (Reporting by Vladimir Soldatkin; Editing by Toby Chopra)

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