Hydrocarbon production, including stakes in joint ventures, increased by 4.1% to 89.75 million TOE in 2017. The biggest contribution to the increased production came from the development of new major projects in the Arctic zone of the Russian Federation – the Novoportovskoye, East Messoyakha, and Prirazlomnoye fields as well as in Iraq. As a whole, the Group increased daily hydrocarbon production (in thousands of tonnes of oil equivalent) by 4.4% YoY.
The Group boosted oil and condensate production by 4.3% YoY to 62.43 million tonnes due to increased production at the Novoportovskoye, Messoyakha, and Prirazlomnoye fields as well as in Iraq. Based on the results of 2017, the Company ranked third in Russia in terms of oil production behind Rosneft and LUKOIL.
Last year, Gazprom Neft launched commercial operations at two major fields – Novoportovskoye and East Messoyakha, which continue to develop at present. In addition, the Company will begin to develop the North Samburgskoye and Tazovskoye fields in the near future. The infrastructure created in the region will allow for the development of neighbouring fields that have both allocated and unallocated subsoil resources.
The Group increased gas production by 3.7% compared with 2016, primarily as a result of an increase in the utilization of APG with the launch of a complex gas treatment unit at the Novoportovskoye field and the commissioning of a compressor station at the Ety Purovskoye field in the fourth quarter of 2016. In addition, the production of natural gas increased in the Noyabrsk region.
The Company is actively developing its gas business with a focus on commercializing the reserves of associated and natural gas produced at fields and increasing its value. The development of small gas deposits that make up larger fields at which Gazprom Neft operates will further enhance the cost-effectiveness of the utilization of the Company’s reserves and help increase hydrocarbon production to 100 million TOE per year, as envisioned by the Company’s Development Strategy until 2025.