Last year the COVID-19 coronavirus pandemic had a sharp negative impact on the oil & gas market, bringing down the demand for hydrocarbons.
In 2020 LUKOIL´s oil production totaled 77.2 million tonnes per year (TPY).
Oil production dynamics was also driven by the OPEC+ agreement concluded in April 2020, based on this, crude production by the Group in Russia was cut in May 2020 by approximately 310 000 barrels per day (bbl/d).
By the end of 2020 production was gradually increased by approximately 100 000 bbl/d as compared to the May level.
Despite a sharp decrease in oil prices and external limitations on production volumes, development of the priority projects continued.
In particular, in West Siberia total oil & gas condensate production in 2020 at the V. Vinogradov, Imilorskoye, Sredne-Nazymskoye and Pyakyakhinskoye fields increased by 20.4% year-on-year (YoY), to 4.2 million TPY.
High viscosity oil production at the Yaregskoye field and Permian reservoir of the Usinskoye field in 2020 increased by 6.2% YoY, to 5.2 million TPY.
Implementation of drilling programs at the V. Filanovsky and Y. Korchagin fields in the Caspian Sea allowed to maintain production at project levels.
Total oil & gas condensate production in 2020 totaled 7.4 million TPY.
The share of the abovementioned projects in the LUKOIL Group's oil production (excl. the West Qurna-2 project) amounted to 22% in 2020 as compared to 18% in 2019.
Production decline was due to temporary decline in demand from China for gas produced in Uzbekistan amid the COVID-19 pandemic.