Gazprom Neft net profit attributable to shareholders for the first-half 2020 were B8 billion rubles. Net profit for this year’s second quarter was 22 billion rubles.
Lower prices for oil and oil products on the international and domestic markets during the period, together with the drop in demand for energy resources resulting from the COVID-19 pandemic, significantly impacted the company’s performance in the year’s first half, the company said Aug. 20.
Hydrocarbon production (including Gazprom Neft’s share in joint ventures) reached 48.6 million tonnes of oil equivalent in the year’s first half, a 2.4% increase year-on-year, resulting from higher production at Arcticgas fields and oil-rim development projects, the commissioning of gas treatment and utilization facilities at Gazpromneft-Vostok and Gazpromneft-Orenburg fields, and the optimization of compressor equipment at Novoportovskoye field.
The Company acquired subsoil usage rights to three new license blocks during the reporting period and expanded the boundaries of a further nine license blocks in the Yamalo-Nenets and Khanty-Mansi Autonomous Okrugs. A joint venture was established between Gazprom Neft, LUKOIL and Tatneft to develop technologies for developing hard-to-recover hydrocarbon reserves in the Orenburg Oblast.
In July, the company commissioned the Moscow refinery’s unique EURO+ refining complex—the first facility in Russia to cover the entire production cycle, from primary refining of crude oil to output of oil products (OGJ Online, July 24, 2020). Following the launch of the facility, 80% of the Moscow refinery has been modernized and upgraded, with refining depth (conversion rate) increasing to 85%.
Refining volumes at Gazprom Neft’s own and joint-venture refining assets in the year’s first half reached 19.5 million tonnes. Refining volumes having been impacted by lower demand for oil products in response to the COVID-19 pandemic, as well as unfavorable pricing environments on domestic and international markets, the company said.