St.Petersburg, December 25 - Neftegaz.RU. Gazprom Neft reviewed the interim results of its 2020 investment programme and the company’s budget for 2020. Total 2020 hydrocarbon production is expected to reach 95.7 million tonnes of oil equivalent (mtoe). Provisional estimates indicate annual refining volumes of 40.1 million tonnes, and sales of premium petroleum products at 23 million tonnes.
The challenging macroeconomic situation resulting from the COVID-19 epidemic, lower oil prices, and reduced demand for petroleum products notwithstanding, the company’s key performance indicators have ensured it maintains its market-leading position in Russia’s oil industry.
The main contribution to the company’s production data in 2020 came from higher production at the Novoportovskoye field, at oil-rim development projects, and at Arcticgas fields. The company acquired subsoil usage rights to 3 new license blocks, as well as increasing acreage at 11 blocks in the Yamalo-Nenets and Khanty-Mansi AOs.
Gazprom Neft continued development of joint projects with partners throughout 2020. The company reached:
- an agreement with Shell on expanding development of the Salym group of fields
- established a JV to develop a major hydrocarbon cluster in the Gydan Peninsula
- with LUKOIL and Tatneft a business was established to develop technologies for hard-to-recover-reserves
- a similar business established in partnership with Zarubezhneft
A “deep refining” complex, based around delayed coking technology, was commissioned at subsidiary NIS’ Pančevo refinery in November 2020, allowing the conversion factor (refining depth) to reach a record level - of more than 99% - while increasing production of diesel fuel by almost 40%.
Q3 2020 saw the company produce its millionth tonne of innovative bitumens since launching commercial production of this product. In line with MARPOL requirements the company increased its production and sales of environmentally friendly marine fuels, with the Omsk Refinery starting production of a new, proprietary low-sulphur fuel in 2020.
Construction of Gazprom Neft’s LNG bunkering vessel is coming to an end, with the vessel expected to begin refuelling ships with environmentally friendly LNG fuel at Baltic Sea ports as soon as 2021.
Gazprom Neft’s 2020 investment programme is expected to reach RUB 381 billion, with the company planning to maintain its 2021 investment programme at the same level. The greater part of this will be invested in developing upstream, technology, and resource-base development projects, projects to increase refining depth, construction of a catalyst production facility, construction of a high-quality base-oil production plant in Omsk, and other projects.
