Russia’s oil and gas production rose further in the first seven months of 2019, despite the impact of the oil pollution crisis and the recent decline in natural gas exports, the Russian Times reported on August 7.
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According to data released by the CDU TEK Department of the German Ministry of Energy, Russian crude oil and condensate production increased by 2% from January to July this year, reaching 325 million tons (11.2 million barrels per day). However, in July, the mining output was 47.15 million tons, down 0.6% from the same period last year.
Millions of barrels of crude oil were found to be contaminated by organic chlorides, and exports through the Druzhiba pipeline were interrupted. Oil production fell by 10.7% in May to 11.11 million barrels a day. In early July, oil prices fell to a three-year low of 10.8 million barrels a day after Russian state pipeline operator Transneft stopped importing oil from Rosneft. The move is part of a larger controversy between the two companies in resolving the pollution crisis.
According to CDU TEK, oil supply rebounded in the second half of June, with total production reaching 47.15 million tons (11.15 million barrels a day) in July, but still down 0.6% from last July.
Rosneft produced 128 million tons in the first seven months of 2019, while Lukoil, the leading private oil company, and Surgutneftegaz produced 47.9 million tons and 35.1 million tons, respectively. Meanwhile, Russia’s gas production grew by 3% year-on-year from January to July, reaching 431.9 billion cubic meters. In July alone, production reached 54.66 billion cubic meters, an increase of 0.5% over the same period last year.
From January 1 to July 15, 2019, natural gas exports from Gazprom to countries outside the former Soviet Union dropped to 102.8 billion cubic meters, down 5.6% from the same period last year. The company’s output was unaffected by weak European sales, up 1.9% year-on-year to 294.5 billion cubic meters.
Novatek, Russia’s largest independent natural gas producer, produced 40.86 billion cubic metres of natural gas in the first seven months of this year, Rosneft 25.43 billion cubic metres, Lukoil 11.93 billion cubic metres and Surgutneftegaz 5.58 billion cubic metres.