Gazprom Neft managed to keep production of hydrocarbons unchanged in 2020 at 96.06 million mt of oil equivalent, or 1.94 million boe/d, mainly by increasing gas output in the fourth quarter, according to the company's operational results released Feb. 18.
Hydrocarbons output in the fourth quarter rose 2.1% to 1.93 million b/d due to a seasonal hike in gas demand, Gazprom Neft said.
The company's oil and condensate volumes in 2020 fell 4.3% year on year to 1.23 million b/d, but fourth-quarter volumes grew 1.7% to 1.2 million b/d as quotas under OPEC+ deal eased.
"Not only have we posted a net profit for this challenging year -- we have also maintained production volumes at 2019 levels: the result of effective asset management and higher gas production," CEO Alexander Dyukov said in a results statement.
Before OPEC + reduced its quotas in response to the coronavirus pandemic, Gazprom Neft ad forecast a production increase of 1% in 2020.
Gazprom Neft is seeking to push hydrocarbons output to 100 million mt in 2021 even if oil production limitations under the OPEC + pact remain in place, by diversifying its portfolio and driving its gas and condensate projects, Dyukov said Dec. 22.
The company's proven reserves of hydrocarbons currently amount to 3.9 billion mt of oil equivalent, up 36% year on year.
Gas, refining
Gazprom Neft increased gas output in 2020 by 5.5% year on year to 43.08 Bcm and in the fourth quarter by 2.5% quarter on quarter to 11.01 Bcm.
Commissioning of new wells at the Arcticgas and Novoportovskoye fields, as well as additional production capacity increasing utilization of associated petroleum gas, helped drive gas output growth, Gazprom Neft said.
At the same time, the company's refining volumes continued to decline in the fourth quarter, dropping 4.2% quarter on quarter to 10.22 million mt due to seasonal maintenance works.
Overall, 2020 refining throughput declined 2.6% to 40.39 million mt due to reduced demand caused by the pandemic, Gazprom Neft said.
