Russia’s Lukoil Reports Oil Production Declines For 2016

Lukoil Announces Consolidated 2016 IFRS Results

Russian oil producer Lukoil said its oil production for 2016 was 8.6% lower than in 2015, but higher for the fourth quarter by roughly 2.5%.

Excluding work in Iraq, Lukoil reported full-year 2016 production of 674 million barrels (MMBbls), a 9% decline year-over-year, UPI reported. Fourth-quarter production was 162 MMBbls, up 2.5% from the year-ago quarter.

Lukoil said its fourth-quarter production excluded volumes from the West Qurna-2 project in Iraq. Production there saw dramatic declines both in year-over-year figures and for the quarter.

“Oil production dynamics outside of Russia were influenced by the divestment of our share in Caspian Investment Resources Ltd. in Kazakhstan in 2015, as well as a decrease in compensation crude oil volume from the West Qurna-2 project,” the company said.

About 95% of total Lukoil production volumes come from reserves in Russian territory, UPI reported.

Total Russian oil production for February was reported at 11.1 MMBbls, relatively unchanged from the previous month.