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LUKOIL Q2 2020 Report: The Company Reduced Oil Production By 5.6%

LUKOIL Q2 2020 Report: The Company Reduced Oil Production By 5.6%

In the first half of 2020, LUKOIL reduced oil production (excluding the West Qurna-2 project) by 5.6% compared to the same period last year - to 40.2 million tons. In the second quarter, production decreased by 12% compared to the first quarter, the company said in a statement.

"The reduction in production is due to the new OPEC+ agreement concluded in April 2020, which led to restrictions on the group's oil production in Russia and on some international projects," the report notes.

The company's daily production of hydrocarbons in the first half of the year (excluding the West Qurna-2 project) amounted to 2.155 million barrels of oil, which is 8.4% lower than a year earlier.

The rates of recycling

The volume of crude oil processing at the group's refineries for six months amounted to 30.6 million tons, which is 8.6% lower compared to the same period in 2019.

"The decrease is due to planned repairs, as well as optimization of loading of some of the company's refineries in the second quarter of 2020, against the background of reduced demand for petroleum products and refining margins due to the COVID-19 pandemic," the report says.

The volume of refining in Russia for the first half of the year decreased by 6.9%, due to planned repairs and optimization of loading at the Nizhny Novgorod and Ukhta refineries in the second quarter. At the same time, the Perm and Volgograd refineries maintained their refining volumes at the level of the first quarter. The volume of processing in Europe for the six months of 2020 decreased by 11.7%, due to planned repairs at plants in Bulgaria and the Netherlands, as well as optimization of the loading of European refineries in the second quarter of 2020.

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