Russia's Oil Output Declines, Gas Production Surges in 2024

By Vladimir Soldatkin

MOSCOW (Reuters) -Russia's oil and gas condensate production reached 516 million metric tons, or 10.32 million barrels per day, in 2024, Deputy Prime Minister Alexander Novak told the energy ministry's in-house magazine on Thursday, around 2.8% lower compared to 2023.

Russia has been holding down its oil production due to an agreement with the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+.

Russian's oil industry is also under Western sanctions, including an embargo on seaborne Russian oil imports and a price cap of $60 per barrel, due to Moscow's conflict in Ukraine.

Novak said Russia's natural gas output rose by 7.6% to 685 billion cubic metres (bcm) last year, while exports of liquefied natural gas (LNG) increased by 4% to 47.2 bcm.

Russia has so far defied predictions of severe declines in its oil supply, including from the Paris-based watchdog International Energy Agency, which in March 2022 said it was possible markets would lose three million bpd of Russian crude.

Russia has managed to redirect all of its crude oil exports affected by Western sanctions to what it terms "friendly" countries, such as China and India.

OPEC+ DEAL

Novak praised the OPEC+ agreement, saying it was beneficial to Russia.

"The deal has a positive effect on the income of our country. Due to rising prices for Russian oil, the share of oil and gas revenues in the federal budget in 2024 amounted to about 30%," he said.

According to the finance ministry, Russia's oil and gas revenues jumped by 26% last year to $108 billion after falling by 24% in 2023 on weaker oil prices and declining gas exports.

Novak said oil exports amounted to 240 million tons last year. This was up from 238.3 million tons in 2023 and in line with government forecast.

(Reporting by Vladimir SoldatkinEditing by Andrew Osborn and Christina Fincher)