FSUOGM: Gazprom Neft to lead Russian output growth

Gazprom Neft aims to be producing 3mn barrels of oil equivalent per day (boepd) by 2025, the company’s CEO Alexander Dyukov announced last week, which would put it on a faster growth trajectory than any of its peers.

The oil arm of state-owned Gazprom said in mid-December that it would reach its long-held goal of producing 2mn boepd of oil and gas by the end of last year. This was after the company commissioned a number of key projects during the year, including the Tazovskoye oilfield in Western Siberia.

Gazprom Neft has now raised its ambitions once more, Dyukov was quoted as saying by the Moscow-based Kommersant newspaper, aftering ramping up its flow by 10% year on year in 2021. It is anticipating a further growth of 5% annually in 2022 and 2023, meaning it could overtake Lukoil as Russia’s second-biggest hydrocarbon producer.

Gazprom Neft was formed from the Soviet-era Sibneft company, but was acquired by Gazprom in 2005 in what was then Russia’s largest corporate takeover and was subsequently renamed. It has acquired a number of other large oil and gas assets since then, but it has also outcompeted other Russian majors in its organic growth rate in recent years.

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