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Lukoil posts production rise

Russian greenfield developments helped Lukoil post an increase in oil production as the private player finally turned the tide on stagnation and output declines of output at its legacy fields in West Siberia.

The company recorded a slight 1% increase in oil production in Russia both in the second quarter of this year against the first quarter and in the first half of this year against the same period of last year.

Lukoil produced 21.76 million tonnes of oil and condensate (159 million barrels) in the second quarter and 43.73 million tonnes of oil and condensate (319 million barrels) between January and June.

Oil production at two of its Caspian offshore fields, Korchagina and Filanovskogo, grew by 30% and 12% in the first half of this year against 2018.

Earlier in July, Lukoil completed offshore installation of an unmanned production platform on the Filanovskogo field under the third development phase, paving the way for a further growth in the field’s output.

The company’s core unconventional oil projects that use steam-assisted gravity drainage to facilitate the outflow of heavy viscous oil from shallow reservoirs at the Yaregskoye and Usinskoye fields in the north, posted an 18% production growth.

Finally, production at three traditional greenfields in West Siberia, Vinogradova, Imilorskoye and Pyakyakhinskoye fields, was 15% higher than last year, Lukoil said.

The company added that taken all together, these developments accounted for 18% of Lukoil’s total oil production in the first half of this year against 16% a year earlier.

The company acknowledged that it had unused capacity to grow oil output even higher in the second quarter, however, it had to comply with restrictions imposed by the country’s’ energy ministry to fulfil the Russian commitment to Opec+ members to reduce the country’s output.

The decline in Lukoil's gas production in Uzbekistan in the second quarter is temporary and is related to maintenance at a major gas processing facility and a gas to chemical plant in the country, it said.

Lukoil is the second-largest gas producer in Uzbekistan after state-owned Uzbekneftegaz.

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