Russia's "energy" announces a decline in oil production in April

. Russia's oil production fell to 11.23 million barrels per day (bpd) in April from 11.3 million bpd in March, but remained abov...


Written ByOumayma Omar

    Oumayma Omar, based in Baghdad, is a contributor to the Culture and Society sections of The News1 En.
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    Russian energy reports decline in oil production in April

    Russia's oil production fell to 11.23 million barrels per day (bpd) in April from 11.3 million bpd in March, but remained above the target levels in the cut-off agreement between major producers, data from the Russian Energy Ministry showed on Thursday.

    Oil production reached 45.975 million tons compared to 47.783 million in March, the longest day.

    Russia has pledged to cut oil output by 228,000 bpd to about 11.18 million bpd from about 11.41 million bpd in October 2018, the baseline for the current deal.

    "Russia will keep oil production in May in line with the agreed level," Russian Energy Minister Alexander Novak said.

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    Russia uses oil reserves it holds to increase production

    In a statement, Alexander Novak said Russia had cut oil production by 213,000 bpd on average in April from October 2018 levels, but excluding production sharing agreements with foreign companies.

    Russia's largest oil producer, Rosneft, fell 0.4 percent on a monthly basis in April, Lukoil's output fell 0.7 percent and Gazprom's oil output jumped 3.2 percent, the data showed.

    Russia's oil exports via pipelines were 4.494 million barrels per day in April, up from 4.432 million bpd in March. These exports could be affected in May and beyond due to a dispute over oil pollution affecting Drogba pipeline supplies Europe.

    The Organization of the Petroleum Exporting Countries (OPEC) and other major producers, led by Russia, have agreed to cut oil production by 1.2 million bpd from January 1 to six months to balance the market.

    A number of Russian officials, including Kiril Dmitryev, head of Russia's direct investment fund, the Sovereign Wealth Fund, said Russia wanted to increase production due to improved market conditions.

    Dmitryev and Energy Minister Novak have been under growing pressure over the past year from companies such as Rosneft, whose chairman Igor Sechin, a close ally of President Vladimir Putin, said Russia should abandon production cuts.

    Gazprom Petroleum, Russia's fastest-growing oil producer, has boosted pressure, saying "it believes the production cut-off agreement is effective until the middle of this year alone."

    The next OPEC-OPEC meeting will be held in Vienna at the end of June.

    You may also be interested:

    Russia's production jumps to 11.19 million barrels in early July

    New laws in the Russian oil sector resonate in the Eurasian Union



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