Russian oil and gas condensate output seen rising over 2.5% in September

Production of gas condensate, a type of light oil, fell in August by almost a fifth

  

MOSCOW- Oil and gas condensate production in Russia is seen rising in September by more than 2.5% from August thanks to a recovery in condensate output and an easing of production cuts under a global deal, three sources said on Tuesday.

Russian oil and gas condensate output C-RU-OUT decreased to 10.43 million barrels per day (bpd) in August from 10.46 million bpd in July O/RUS1 , despite a global agreement to start phasing out production cuts amid an economic recovery.

Earlier this month, the Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+ as the alliance is known, agreed to increase oil output targets by a further 400,000 bpd in October.

According to a source familiar with the data, production of gas condensate, a type of light oil, fell in August by almost a fifth, to 2.47 million tonnes, mainly due to a fire at Gazprom's facilities in northern Russia. 

"The Russian Energy Ministry gave a green light for a production increase already in August. We have been cranking up output both at new and old projects," a source at a Russian oil producer said.

Leading Russian oil producers and the energy ministry have not responded to Reuters requests for comments.

"The focus was on more profitable tonnes in August following an increase in the production quota, while in September, less profitable projects were also used (to boost production)," the source said.

Two other sources familiar with the production data, said daily Russian oil and gas condensate output on Sept. 1-27 reached 1.46 million tonnes, or 10.7 million barrels per day. Reuters uses the barrel/tonne ratio of 7.33.

One of the sources said production of gas condensate, which is excluded from Russia's output quota under the OPEC+ deal, has almost recovered to the levels of July, when condensate output stood at 3.07 million tonnes.

OPEC+ is holding an online meeting to decide on further production policy next week. Under the current arrangement the group is raising its cumulative output by 400,000 barrels per day each month.

Russian oil and gas condensate production in 2020 stood at 512.8 million tonnes, of which condensate output was more than 36 million tonnes.

(Reporting by Olesya Astakhova and Gleb Gorodyankin; writing by Vladimir Soldatkin; editing by David Evans) ((vladimir.soldatkin@reuters.com; +7 495 775 12 42;))


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