Lukoil increases hydrocarbon production year-on-year, quarter-on-quarter

Feb. 7, 2022
LUKOIL Group's hydrocarbon production for 2021, excluding the West Qurna-2 project, was 2.16 MMboed, which is 4.7% higher year-on-year. Fourth-quarter 2021 hydrocarbon production increased by 7.6% quarter-on-quarter.

LUKOIL Group's hydrocarbon production for 2021, excluding the West Qurna-2 project, was 2.16 MMboed, which is 4.7% higher year-on-year. Fourth-quarter 2021 hydrocarbon production increased by 7.6% quarter-on-quarter.

In 2021 oil production, excluding West Qurna-2, was 79.3 million tonnes, which is 3% higher year-on-year in average daily terms, while fourth-quarter 2021 oil production increased by 5.3% quarter-on-quarter to 21.1 million tonnes. Oil production dynamics were driven by the April 2020 OPEC+ agreement which led to limitations on oil production by the Group in Russia and at certain international projects. Oil production by the group in Russia was cut in May 2020 by about 310,000 b/d, or by 19%, as compared to first-quarter 2020, and has been gradually recovering subsequently. As a result, fourth-quarter 2021 oil production by the group in Russia was about 270,000 b/d higher compared to May 2020.

In West Siberia, total oil and gas condensate production in 2021 at V. Vinogradov, Imilorskoye, Sredne-Nazymskoye, and Pyakyakhinskoye fields increased by 8.1% year-on-year, to 4.5 million tonnes.

In 2021, gas production increased in average daily terms by 11.2% year-on-year to 32.2 billion cu m. The growth was driven by recovery of gas production in Uzbekistan after temporary decline in 2020 due to lower demand from China for gas produced in Uzbekistan amid the COVID-19 pandemic.

In fourth-quarter 2021, gas production increased by 12.7% quarter-on-quarter to 8.6 billion cu m. The increase was mainly attributable to seasonal growth of demand for gas, as well as higher associated petroleum gas production following an increase in oil production.

In 2021, refinery throughput at LUKOIL Group's refineries was 63 million tonnes, which is 7.4% higher year-on-year. The increase in refinery throughput volumes both in and outside Russia was attributable to higher refineries utilization rates due to better market environment in 2021, as well as scheduled maintenance works in 2020. In fourth-quarter 2021, refinery throughput was 15.5 million tonnes, which is 10.5% lower quarter-on-quarter due to scheduled maintenance works at the refineries outside Russia, as well as seasonal throughput optimization in Russia.