6 Feb 2020 12:37

Gazprom Neft/Mubadala/RDIF JV to boost hydrocarbon output 23% in 2020

TOMSK. Feb 6 (Interfax) - Gazpromneft Vostok, a joint venture between Russian oil company Gazprom Neft , Mubadala Petroleum and the Russian Direct Investment Fund (RDIF), will increase hydrocarbon production by 23% to 2.3 million-2.4 million tonnes of oil equivalent in 2020, the venture's CEO, Konstantin Karabadzhak said at the launch of Gazprom Vostok gas facilities in Tomsk Region.

He said the company will maintain this level of production for the next three years, and subsequently everything will depend on the results of exploration.

Gazpromneft Vostok is planning to invest about 9 billion rubles in 2020 and plans to maintain this level of investment subsequently, Karabadzhak said.

The venture plans to channel most of its investment into geological exploration and studying the results, he said. "This will be the springboard for rolling out production drilling," he said.

Gazpromneft Vostok produced 1.7 million tonnes of oil in 2019, 2.7% more than a year earlier, company materials show. Gas production jumped 28.7%. Overall production increased by 6% to 1.9 million tonnes of oil equivalent.

Gazpromneft Vostok has drawn up an ambitious program of geological and technical measures for the near- and medium-term future, including drilling of exploration and prospecting wells. The company plans to drill six exploration wells in 2020-2022. The second important area is seismic surveys, with which it plans to cover 1,194 square km in 2020-2022.