Oil & Gas News Digest

MOSCOW. Dec 2 (Interfax) - The oil production plan for OPEC+ countries, taking into account quotas, voluntary reductions and compensation for insufficiently reduced output, is 35.45 million barrels per day in December, unchanged from November, Interfax calculations showed. In addition to the quotas for all participating countries, eight OPEC+ countries have been voluntarily reducing production since last year, in two stages. One of the cuts, by 2.2 million bpd, was supposed to be phased out gradually starting October 1 by 180,000-200,000 bpd per month, but in early September the countries decided to put off increasing output for another two months, and then until the end of December. In addition, there is a compensation schedule for countries that exceeded their agreed production levels in the first half of 2024 - Iraq, Kazakhstan and Russia. All three countries did not meet targets in the previous months either, but they have not yet presented revised compensation schedules. Iraq is supposed reduce oil production by 110,000 bpd in addition to its quota in December, compared to 100,000 bpd in November, and Kazakhstan is supposed to increase compensation to 54,000 bpd in December from 32,000 bpd in November. Russia, however, does not need to compensate, whereas in November it had to compensate by 30,000 bpd for previously insufficiently reducing output. This is due to weather conditions in Russia.

MOSCOW. Dec 4 (Interfax) - Independent Russian oil companies (IOC) in 2024 should return to the average annual output of recent years, Anton Rubtsov, director of the Energy Ministry's oil and gas complex department, said during the "Improving Russian Legislation on Taxes and Fees for Independent Oil Companies" meeting in the Federation Council. "I am telling you that production has been rather stable at about 23-24 million tonnes in 2021, 2022, 2023, 2024. There was a small dip in 2023. However, we are now seeing growth again in 2024, a return, and we should reach the same 24 million tonnes this year," Rubtsov said. Yelena Korzun, head of the Association of Independent Oil and Gas Producing Companies (AssoNeft), earlier said that IOCs had cut production by over 22% since 2022. As previously reported, Deputy Prime Minister Alexander Novak said that Russia is projected to produce 515-521 million tonnes of liquid hydrocarbons overall in 2024.

BAKU. Dec 2 (Interfax) - Azerbaijan's government expects domestic oil production to total about 26.683 million tonnes in 2028, which is 7% lower than the forecast for 2025. The government's published forecasts for 2025-2028 indicate that domestic oil output should total around 28.695 million tonnes in the coming year, nearly 27.838 million tonnes in 2026, and about 27.358 million tonnes in 2027. State Statistics Committee data indicate that domestic oil production with gas condensate decreased 7.5% year-on-year to nearly 30.19 million tonnes in 2023. Accounts Chamber data indicate that the figure should total 29.2 million tonnes in 2024. As reported, Azerbaijan cut output of oil and condensate 3.7% year-on-year to nearly 24.148 million tonnes in January-October this year, with production of commercial oil with condensate specifically declining 3.5% year-on-year to nearly 24.093 million tonnes.

MOSCOW. Dec 4 (Interfax) - Pakistan has proposed that Russia participate in oil and gas exploration on its shelf, as well as in oil refining, Deputy Energy Minister Roman Marshavin said during a meeting of the intergovernmental commission. "A protocol of the working group has been agreed upon, and all agreements are reflected in it. Stable supplies of Russian oil to Pakistan are ongoing, and all technical and financial issues are being promptly resolved by the sides. Work is underway to increase these supplies and diversify the range of products," he said. "Yesterday, we received a rather interesting proposal from Pakistan regarding oil and gas exploration on the shelf, enhancing oil recovery at mature fields, and in oil refining. Russian companies are ready to study these proposals. We will continue the discussion with our partners," he said. "We are also awaiting the results of Pakistan's comprehensive energy infrastructure plan, after which we will continue the dialogue, including the coal industry. Negotiations have been held between RusHydro and Power Machines and Pakistan's water and energy authorities. Five projects in hydroenergy and water management have been selected, and we have agreed to hold further talks on these topics," Marshavin said. "We are exporting food products and agricultural goods, and expect grain supplies to resume. We positively assess the growth of Russian mineral fertilizer exports to Pakistan this year," he said. Russia sees significant potential for cooperation in agricultural and transport engineering, he said. Domestic companies are ready to offer modern types of machinery to their Pakistani partners in these areas. Moscow has also proposed expanding cooperation in the pharmaceutical sector, particularly in insulin supplies. The sides have agreed to workon a test shipment using the North-South international transport corridor. Russia is ready to offer modern high-tech solutions in the fields of information security, smart cities, e-government and the Internet of Things. Trade turnover between Russia and Pakistan reached a record $1.1 billion in 2023 and has grown 1.5-fold over the past five years.

Reconstruction of oil refinery?

Pakistan has invited Russia to participate in the reconstruction of an oil refinery, the two countries' respective energy ministers said following a meeting of the Russia-Pakistan intergovernmental commission. "We are supplying oil. We have discussed participating in the reconstruction of the oil refinery. We are considering other opportunities for Russian companies to participate in the oil and gas sector to work in Pakistan," Russian Energy Minister Sergei Tsivilev told reporters. Tsivilev said that the parties considered the possibility of utilizing the North-South corridor for railway transport, as well as the prospects of establishing direct flights from Islamabad to Moscow. Pakistan's Energy Minister Awais Leghari in turn said that the country requires additional oil refining capacity, and it is interested in attracting investment from Russia and "improving the technological component.?

MOSCOW. Nov 29 (Interfax) - Russian Prime Minister Mikhail Mishustin has signed the instruction on the parameters of the federal investment tax deduction at 3%, and the deduction enters into force on January 1, 2025, the government's press service said. "The federal investment tax deduction enters into force in Russia starting on January 1, 2025. Prime Minister Mikhail Mishustin has signed the decree setting the parameters. The deduction will be 3%. Profit tax payment may be reduced by this amount provided that the funds are then invested to develop production," the press service said. The document indicates that the federal investment tax deduction is available to enterprises and organizations that extract minerals, as well as to companies that operate in the manufacturing sector, except for those that produce food products, beverages, and tobacco products. The investment tax deductions are also available to enterprises that supply consumers with electricity, gas and steam; provide catering and hospitality services; as well as organizations engaged in scientific research and development, and organizations and companies operating in the area of IT and telecommunications. As reported, the Finance Ministry has envisaged 150 billion rubles in the 2025 federal budget in order to finance the federal investment tax deduction. Alexander Shokhin, head of the Russian Union of Industrialists and Entrepreneurs (RSPP), said that companies had initially estimated the increase in the profit-tax deduction required to compensate for investing in assets at 500 billion rubles, then reduced the estimate to 300 billion rubles, then to 200 billion rubles, and then to the final version of 150 billion rubles. Shokhin said that this amount would be acceptable for the pilot year of 2025, though he has expressed hope that the amount would rise in subsequent years.

MINSK. Dec 3 (Interfax) - Belarus' government has hiked export duties on several petroleum products exported beyond the customs territory of the Eurasian Economic Union (EAEU). The government decree, as published on the national legal internet portal, stipulates that the rate has jumped to $61.70 per tonne for liquefied petroleum gas from $49.70 per tonne, and to $55.50 per tonne for ethane, butane and isobutene from $44.70 per tonne, respectively, as of December 1. Zero rates have been retained for oil, straight-run gasoline, trimers and tetramers of propylene, light and medium distillates, diesel fuel, commercial gasoline, benzene, benzol, toluene, xylenes, fuel oil, lubricating oils, waste petroleum products, petroleum jelly and paraffin, petroleum coke, and petroleum bitumen. As of this February, the Belarusian government has slashed export duties on oil, bitumen, fuel oil, and a number of other petroleum products to zero. However, export duties have been set on liquefied petroleum gases, as well as on ethane, butane and isobutene, as of September 1. Minsk has been unifying the rates of export duties on oil and petroleum products with those in effect in Russia since 2010, accounting for duty-free imports of oil from Russia. All export duties on oil and petroleum products have remained in Belarus' budget since 2015 in line with the agreements in the EAEU.

ASTANA. Dec 4 (Interfax) - Kazakh President Kassym-Jomart Tokayev has met with Saudi Crown Prince Mohammed bin Salman Al Saud, the Kazakh presidential press service said. "The meeting addressed trade, economic and investment cooperation, including in the fields of energy, oil and gas, transport and logistics," the press service said. Tokayev thanked King Salman bin Abdulaziz Al Saud of Saudi Arabia, and Crown Prince, Prime Minister Mohammed bin Salman Al Saud for supporting and hosting the One Water Summit in Riyadh. He said he was confident that the summit co-chaired by Kazakhstan and France would make a substantial contribution to the promotion of the global ecological agenda. In turn, the crown prince described Kazakhstan as an important partner of Saudi Arabia in Central Asia. "He noted the broad opportunities unlocked for progressive development of bilateral trade, economic and investment relations," the press service said. The sides exchanged views on current regional and global affairs, it said.

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