Lukoil Q1 hydrocarbon output up 4.2% to 2.152 mln boe/d

TASS Russian News Agency | May 14, 2021 at 3:17 PM

MOSCOW, May 14. /TASS/. Lukoil's production in Q1 of 2021 amounted to 2.152 mln barrels of oil equivalent per day (boe/d), excluding the West Qurna-2 project in Iraq, which is 4.2% more than in Q4 of 2020, but 7.6% less than a year earlier, according to the company's report.

"The growth was attributable to the dynamics of the external limitations on oil production due to the OPEC+ agreement, as well as to the recovery of gas production in Uzbekistan. Hydrocarbon production was 7.6% lower year-on-year due to the OPEC+ agreement," the company said.

According to the statement, oil production excluding the West Qurna-2 project was 18.8 mln tonnes in Q1 of 2021, which is 2.4% higher quarter-on-quarter and 11.2% lower year-on-year in average daily terms. "Oil production dynamics was driven by the OPEC+ agreement concluded in April 2020, which led to limitations on oil production by the Group in Russia and at certain international projects," the company said.

Due to the agreement, oil production in Russia was reduced in May 2020 by around 310,000 barrels per day, or by 19% against Q1 of 2020, and has been gradually recovering since. As a result, in Q1 of 2021, the company's oil production in Russia was almost 130,000 bpd higher compared to May 2020 level.

In Q1 of 2021 refinery throughput at Lukoil Group's refineries was 14.4 mln tonnes, which is 9.9% higher quarter-on-quarter, and 15.5% lower year-on-year. "The dynamics of refinery throughput volumes was attributable to scheduled maintenance works and throughput optimization at some of the refineries driven by the changes in macro environment," the company noted.

Refinery throughput in Russia in Q1 of 2021 increased by 3.6% quarter-on-quarter to 10.0 mln tonnes due to scheduled maintenance works in Q4 of 2020. At the same time, refinery throughput in Europe in Q1 of 2021 increased by 27.6% quarter-on-quarter to 4.4 mln tonnes "mainly due to scheduled maintenance works and throughput optimization at refineries in Italy and Bulgaria in the fourth quarter of 2020".