Russian September Oil Production Jumps Most in 13 Months

(Bloomberg) -- Russia’s oil production resumed growth in September, rising the most in 13 months, as companies ramped up output under the OPEC+ deal, while Gazprom PJSC’s condensate supply rebounded after a fire.

The nation pumped 43.86 million tons of crude oil and condensate last month, according to data from the Energy Ministry’s CDU-TEK unit. That equals 10.716 million barrels a day, based on a 7.33 barrel-per-ton conversion ratio. Production was 2.6% higher than August, when Gazprom capped output at its largest condensate-treatment plant in West Siberia after the fire. 

Under the agreement between the Organization of Petroleum Exporting Countries and its allies, the group can increase crude oil supply by 400,000 barrels a day each month starting in August, of which about a quarter is Russia’s share. The hikes are set to continue until all of the output curbs from the depth of the pandemic are rolled back. The next OPEC+ meeting is scheduled for Oct. 4.   

It’s difficult to assess Russia’s adherence to the deal, as CDU-TEK data don’t provide a breakdown between crude and condensate, which is excluded from the OPEC+ agreement. If Russia’s condensate output rebounded to levels before the fire at the Gazprom plant -- about 880,000 barrels a day -- then its daily crude-only output in September was around 9.83 million barrels, some 130,000 barrels above its September quota.

Russia’s compliance shrank from 95% in July to 92% in August, the lowest rate among major OPEC+ producers, as its crude-only supply reached 9.71 million barrels a day, the International Energy Agency said in its latest monthly report.

All major producers, excluding Rosneft PJSC and Gazprom Neft PJSC, increased output last month compared with August. While Rosneft, which accounts for more than a third of nation’s output, pumped 0.3% less oil last month, its unit Bashneft, which is presented separately in the statistics, increased production by 18.2%. Slavneft, a joint venture between Rosneft and Gazprom Neft, raised production by 9.9%. Output of smaller oil producers, which include Gazprom, rose by 11.6%.

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