Oil production of Bashneft in the 1st half of 2016 increased by 10.9% to 10.58 mln tonnes, the company announced on July 27, 2016.
Bashneft has released its preliminary operating results for the second quarter of 2016.
- Average daily oil production grew by 9.6% year on year to 58.2 thousand tonnes.
- Oil production at brownfields added 0.6% year on year.
- New assets in Timan-Pechora and Western Siberia accounted for 21.6% of oil production.
- Refining decreased by 8.6% year on year due to scheduled repairs at Bashneft-UNPZ.
- The share of light products and refining depth stood at 67.7% and 86.2% respectively.
- 100% of motor gasoline and diesel fuel meet the Euro 5 standard.
In the second quarter of 2016, the Company produced 5,294 thousand tonnes of oil, which is 9.6% more than in the second quarter of 2015. In the second quarter of 2016, average daily production reached 58.2 thousand tonnes per day. Production growth was driven mainly by Bashneft-Polyus and Burneftegaz, which accounted for 21.6% of total oil production as against 14.6% in the second quarter of 2015.
Thus, in the second quarter of 2016, Bashneft-Polyus boosted production by 84.3% year on year (to 571 thousand tonnes), while Burneftegaz increased production by 44.3% (to 572 thousand tonnes). Production growth was driven by efficient implementation of the production drilling programme involving drilling highly productive horizontal wells, as well as by the use of state-of-the-art enhanced oil recovery techniques.
Year-on-year production growth was also supported by a 0.6% increase in oil production at brownfields, mainly due to commissioning of new wells and highly efficient geological and engineering operations in Bashkortostan.
During the 6 months of 2016, Bashneft produced 10,580 thousand tonnes of oil, which is 10.9% more than during the same period in 2015. Bashneft-Polyus boosted production by 76.3% year on year (to 1,082 thousand tonnes), while Burneftegaz increased production by 66.3% (to 1,141 thousand tonnes). In the first half of 2016, production at brownfields gained 1.4% year on year.
In the second quarter of 2016, Bashneft’s refining complex processed 4,092 thousand tonnes of crude oil, which is 8.6% less than in the second quarter of 2015. The reduction in refining was caused by a planned shutdown of process units at the Bashneft-UNPZ industrial site due to major repairs. During the six months of 2016, refining totalled 8,824 thousand tonnes, which is 4.0% less than in the first half of 2015.
In the second quarter of 2016, the output of petroleum products and petrochemicals decreased by 10.0% year on year (to 3,772 thousand tonnes), while during the six months of 2016, it dropped by 4.9% (to 8,213 thousand tonnes). At the same time, close integration of the refining complex in Ufa and completed modernization enabled the Company to maintain a high quality of its product mix. The share of light products remained almost unchanged: during the six months of 2016, it stood at 68.3% as against 68.5% in the first half of 2015, while in the second quarter of 2016, it totalled 67.7% as against 68.5% in the second quarter of 2015.
During the 6 months of 2016, gasoline production fell by 6.5% year on year to 2,048 thousand tonnes, while the output of diesel fuel decreased by 3.6% (to 3,531 thousand tonnes). In the second quarter of 2016, gasoline production fell by 16.4% year on year (to 895 thousand tonnes), while the output of diesel fuel decreased by 5.8% (to 1,660 thousand tonnes). All engine fuel produced in the first half of 2016 met the Euro 5 standard; at the same time, during the six months of 2016, the output of Euro 5 gasoline decreased slightly compared to the first half 2015 by 1.3% (to 2,004 thousand tonnes). The reduction in the output of engine fuels related to scheduled repairs at Bashneft-UNPZ did not affect the fulfilment of the Company’s obligation to supply petroleum products to the domestic market under the quadripartite agreement on refinery upgrades.
During the 6 months of 2016, refining depth increased to 86.2% as against 85.2% during the same period in 2015; in the second quarter of 2016, it stood at 86.2% as against 86.8% in the second quarter of 2015.
