Sanctions have nothing to do with it? Surgutneftegaz sharply has reduced gas production

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to the regional publication "Муксун.FM " (Khanty-Mansiysk) on the gas production dynamics in Russia in January-February 2024.

Associated petroleum gas production from Surgutneftegaz and in Western Siberia as a whole may decrease due to a decrease in oil production under the OPEC+ agreement, Alexey Belogoryev believes.

"Surgutneftegaz produces almost exclusively associated gas and then relatively little — 6.9 billion cubic meters in 2023. The drop may be due to a reduction in oil production under the OPEC+ agreement, mainly in fields with a high gas factor," the expert explained the drop.

In general, for all Vertically Integrated Companies (VINCs), Belogoryev adds, gas production is now stabilizing, as the growth factor of production at Rosneft's gas and gas condensate deposits is weakening, which pushed the total production of VINCs up in 2023 — then it increased by 8.3% year on year. The increase in production is mainly provided by Gazprom and NOVATEK — due to overcoming the bottom in export shipments and increasing demand in the domestic market.