Alexander Novak, Russian Deputy Prime Minister, told a magazine issued by the Ministry of Energy, today, Thursday, that the country’s oil production and gas condensate reached 516 million tons, equivalent to 10.32 million barrels per day in 2024, a decrease of 2.8% compared to 2023.
Russia reduces its oil production under the OPEC Plus coalition agreement, which includes the Organization of Petroleum Exporting Countries (OPEC) and other partners, most notably Russia.
The Russian oil sector is subject to Western sanctions, which includes a ban on the imports of Russian oil transported by sea, and setting a price for the price at $ 60 a barrel due to the conflict in Ukraine.
Novak said that Russia’s natural gas production rose 7.6% to 685 billion cubic meters last year, while LNG exports increased 4% to 47.2 billion cubic meters.
Russia has so far united expectations of a sharp decline in its supply of the global market of oil, including the expectations of the International Energy Agency in Paris, which said in March 2022 that the markets are likely to lose 3 million barrels per day of Russian crude.
Russia was able to redirect all its exports of crude oil affected by Western sanctions to what it described as “friendly” countries such as China and India.
Novak praised the OPEC Plus agreement and said it was useful to Russia.
He continued, “The agreement has a positive impact on our country’s income. Because of the high prices of Russian oil. The share of oil and gas revenues in the federal budget in 2024 reached approximately 30%.”
According to the Ministry of Finance, Russian oil and gas revenues jumped 26% last year to 108 billion dollars, after a decrease of 24% in 2023 due to the decline in oil prices and the decrease in gas exports. Novak said that oil exports amounted to 240 million tons last year.
This represents an increase of 238.3 million tons in 2023, which is in line with the government’s expectations.
