Deputy PM says Russia’s 2023 oil, gas condensate output to fall 4%

MOSCOW, Apr 27 (PRIME) -- Russia's oil and gas condensate production is to decrease to 515 million tonnes in 2023 from 535 million tonnes in 2022, Deputy Prime Minister Alexander Novak said on Thursday.

"We forecast the overall (output) at 515 million tonnes. Comparing with last year, it stood at 535 million (tonnes), which means a decrease by 20 million tonnes," Novak said.

Russia sees no need in deepening oil production cut in the framework of the OPEC+ alliance because of a slower than expected increase of demand in China and a reduction of oil prices, he said.

According to the official, Russia is to redirect 140 million tonnes of oil and oil product exports to Asia from Europe in 2023 with the westbound exports standing at 80–90 million tonnes. Novak estimated the 2022 export redirection at about 40 million tonnes.

Novak said that the discount on the Russian Urals oil blend amounts to U.S. $26–27 per barrel as compared with the Brent blend, while the budget law envisages a $34 discount in April, which means that the taxable base is higher than forecasted.

The official also said that the oil market was balanced and reacted to the dynamics of the related markets.

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