Russia’s Oil Output Rises to Near Most Since Soviet Era

Russia, the world’s biggest oil producer, increased crude and condensate production by 1 percent in July from a year earlier to 10.43 million barrels a day, near a post-Soviet record.

Daily output fell 0.7 percent from June, when it set the record, according to preliminary data sent by e-mail today from the Energy Ministry’s CDU-TEK unit in Moscow. Soviet-era production in Russia peaked at 11.48 million barrels in 1987.

President Vladimir Putin is promoting tax relief for offshore and low-permeability resources to keep production at more than 10 million barrels a day as Soviet-era Siberian deposits decline. He signed off on tax breaks last month for less accessible resources that could be applied to so-called tight oil deposits starting in September. The oil and natural gas industry contribute half of the nation’s revenue.

Crude and condensate exports fell 1.7 percent to 4.97 million barrels a day in July from the previous month. Shipments from Primorsk, Russia’s largest oil port, will be less than 1 million barrels a day for the third month in August and the lowest since at least 2008.

Natural gas output rose 3.9 percent last month from a year earlier to 1.5 billion cubic meters a day, the data show. Gazprom, Russia’s gas export monopoly, boosted production 1 percent to 1.03 billion cubic meters. Shipments to Europe and Turkey rose 29 percent to 14 billion, Gazprom said yesterday.

bloomberg