Lukoil 1st Half Production Falls Amid Coronavirus Pandemic, OPEC Deals

By Joe Hoppe

Lukoil PJSC said Friday that average hydrocarbon production in the first half of 2020 fell year-on-year, amid significant production cuts in the second quarter due to OPEC agreements and coronavirus-related disruption.

The Russian oil-and-gas company said total hydrocarbon production in the first half--excluding the West Qurna-2 project--was 2.16 million barrels of oil equivalent a day, 8.4% lower year-on-year.

The company attributed the fall in the second quarter, down at 1.98 million barrels a day, to the new Organization of the Petroleum Exporting Countries agreement which limits oil production in Russia, as well as a decrease in gas supply from Uzbekistan to China, driven by the hit to hydrocarbon demand from the coronavirus pandemic.

Total oil production for the first half, including compensation oil from the West Qurnna-2 project, slipped slightly to 41.99 million metric tons, from 43.37 million a year prior. Gas production slipped 14.7% year-on-year to 14.8 billion cubic meters, due to lower demand from China.

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(END) Dow Jones Newswires

August 07, 2020 06:41 ET (10:41 GMT)

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