UPDATE: Russia’s Gazprom Neft to raise ‘17 liquid hydrocarbon output 4.5–5%

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MOSCOW, Dec 27 (PRIME) -- Russian oil major Gazprom Neft plans to raise its hydrocarbon output by 4–4.5% and output of liquid hydrocarbons, mainly oil, by 4.5–5% in 2017, CEO Alexander Dyukov told reporters on Tuesday.

“We expect that growth of production volumes will amount to 4–4.5% next year on hydrocarbons, 4.5–5% on liquid (hydrocarbons), mainly oil,” he said.

In 2016, Gazprom Neft expects to raise its hydrocarbon output by 7.7% to 85.8 million tonnes of oil equivalent.

Gazprom Neft plans to reduce oil refining volumes slightly in 2017 due to repairs at the Moscow Oil Refinery, Dyukov said.

He also said the company may suspend production at some wells and will also halt production at the Prirazlomnaya oil platform for three months in the summer of 2017 for technical upgrade. Production at the platform is expected to grow to 2.5–2.6 million tonnes in 2017 from 2.1 million tonnes in 2016 despite the halt, he added.

Gazprom Neft will be ready to start commercial production of shale oil at the Bazhenov deposits by 2020, Dyukov said.

Dyukov also said that gas giant Gazprom plans to transfer licenses for two oil fields to Gazprom Neft in the first quarter of 2017.

The company is ready to discuss creation of a consortium, including with Russian companies, to take part in an auction for the Erginskoye field in the Khanty-Mansi Autonomous District, Dyukov said.

Gazprom Neft also postponed reaching the peak output of 115,000 barrels a day at Iraqi’s Badra field to 2018 from 2017, he said.

The company will also make a decision on the development of the Cheshmeh Khosh and Changule oil fields in Iran after geological estimation and feasibility study, he said. Gazprom Neft agreed to participate in the development of these fields with National Iranian Oil Company (NIOC) earlier in December.

Dyukov also said the company believes there are no grounds for an additional tax burden on the oil industry in 2017, as the current one is excessive.

The company based its 2017 business plan on the Urals oil blend price of U.S. $48 per barrel and the ruble rate of 63.3 rubles per dollar and expects its net profit to significantly grow in 2016. Dividend payments are also projected to increase in 2016 and later.

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