Russia's Rosneft daily oil output to reach 6.4 mln bbl by 2020

MOSCOW, Jun 27 (PRIME) -- The daily oil output of Russian oil major Rosneft will increase to 6.4 million barrels, CEO Igor Sechin said at the company’s annual general meeting on Friday.

“As of today the daily oil output amounts to 5.1 million barrels – it is more than Iran’s. By 2020, the daily oil output will increase to 6.4 million barrels,” he said.

In 2013, the company produced 203 million tonnes of oil and 38.17 billion cubic meters of gas.

The company’s oil refining capacity in Russia will increase to 90 million tonnes by 2017 from 78 million tonnes refined in 2013 as the company upgrades its facilities, Sechin said, adding that by 2020 the Far East Petrochemical Company (VNHK) will be launched.

The annual production potential of the company in eastern Siberia amounts to 50 million tonnes of oil, while 10-15 million tonnes are hard oil, he said.

The start of extraction from the Severnoye Chayvo field offshore the Sakhalin Island is scheduled for October, Sechin said. The field’s reserves amount to 9.356 million tonnes of oil under C1 category and 5.482 million tonnes of oil under C2 category.

Drilling works on the shelf of the Black Sea are slated for January-March, 2015, he said. In 2011, Rosneft and ExxonMobil agreed on a joint development of hydrocarbon fields on the shelf of the Black Sea. The companies will establish a joint venture to explore and extract oil from the Tuapsinsky sag in the sea.

ExxonMobil Russia CEO Glenn Waller said that the annual output capacity of 4.5 million tonnes of oil will be reached in 12-18 months on the Arkutun-Dagi field. He also said that by the end of the year daily output on the field will amount to 95,000 barrels. The field is part of the Sakhalin-1 project.

Rosneft is ready to sell gas from the project to gas giant Gazprom, but the company does not like the price.

Sakhalin-1 is the oil and gas project which envisages the development of three fields – Chayvo, Odoptu and Arkutun-Dagi with extractable reserves amounting to 2.3 billion barrels of oil and 485 billion cubic meters of natural gas.

ExxonMobil is the Sakhlin-1 operator with a 30% stake. SODECO also owns 30% in the project, while Russian oil major Rosneft and ONGC hold 20% stakes each. The companies develop the Sakhalin-1 fields under a production sharing agreement.

End