November 18, 2021 | oil and gas

Lukoil Intends to Boost Liquid Hydrocarbon Output to 83 Million MT in 2022

Lukoil intends to increase liquid hydrocarbon production to 83 million metric tonnes or an average of 1.67 million bpd next year.

Lukoil, one of Russia's largest oil producers, intends to increase liquid hydrocarbon production to 83 million metric tonnes, or an average of 1.67 million barrels per day (bpd) next year, according to CEO Vagit Alekperov.

When the OPEC+ agreement went into effect in May 2020, Lukoil's oil output was lowered by 19 percent, around 310,000 bpd, compared to pre-crisis levels in Q1 2020.

Lukoil's liquid hydrocarbon output in 2020, excluding the West Qurna 2 project in Iraq, was 1.598 million bpd, down 10.5 percent from pre-pandemic levels of 1.785 million bpd in 2019.

In the third quarter, the corporation was able to increase production by 210,000 bpd over May 2020 levels.

Lukoil's spare production capacity is now at 30,000 bpd and they anticipate that, if production volumes continue to rise at this rate, they will be able to fully utilize their oil production capacity in Russia and overseas by the end of January or early February, according to Alekperov.

Lukoil believes that potential penalties on Russia's Aeroflot carrier over the migrant issue on the Belarus/EU border have no impact on their output.

Alekperov stated that a lack of investment in Russia can harm output. They have seen a decrease in new project investments as a result of the pandemic. That is the primary danger that could derail their plans to boost production.


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