CEO: Rosneft’s hydrocarbon production stays flat on year in 2019

MOSCOW, Feb 11 (PRIME) -- The combined hydrocarbon production of Russian oil major Rosneft remained flat on the year at 285.5 million tonnes of oil equivalent in 2019, CEO Igor Sechin told President Vladimir Putin on Tuesday.

“Our production in 2019 remained at the level of the previous year, which is 285.5 million tonnes of hydrocarbons (in the oil equivalent). Given that, the average daily production level stood at 5.8 million barrels per day. This is a very good result, one of the best results in the global industry,” he said, adding that the company complied with the restrictions of the OPEC plus deal.

The company’s investment program amounted to about 1 trillion rubles last year.

Rosneft ensured the highest dividends for 2019 paying about 283 billion rubles, he said.

“In spite of our investment program, we ensured the highest dividend payments for 2019, it is about 283 billion rubles. We will pay about 3.6 trillion rubles directly to the tax system, to the budget system of the country for the year (according to preliminary figures),” he said.

The company previously received orders under the national projects to ensure cargo transportation through the Northern Sea Route, and the Vostok Oil project would ensure it.

“The name of the project is Vostok Oil. The resource base at the current stage…amounts to about 5 billion tonnes of oil. The total amount of investment in the project throughout the period of its implementation will exceed 10 trillion rubles. We plan to invest about 2 trillion rubles at the first stage,” he said, adding that the project would speed up the growth of Russia’s gross domestic product (GDP) by 2 percentage points per year.

He also said that Rosneft prolonged long-term contracts for exports of oil through the Druzhba pipeline in the direction of Poland and the Czech Republic, including exports to Germany. “We increased the share of Bavaria’s Bayernoil plant. We have supplied 83 million tonnes of oil to Germany since 2016, it accounts for 25% of their total oil imports,” he said.

(63.7708 rubles – U.S. $1)

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