Russia Sees Oil Products Output Down 2.5% in 2017
Russia's output of oil products is expected to fall by about 2.5% in 2017 due to further work on a massive refinery modernization program aimed at boosting fuel quality, a deputy energy minister said.
In 2011, the government and oil producers agreed on the $50 billion initiative to update Russia's refineries, most of which were built in the 1940s and 1970s, Reuters reported.
Russia's gasoline supplies almost ran dry in 2011 due to a lack of modern refining capacity, angering many voters in the run-up to Vladimir Putin's election to a third presidential term.
Deputy Energy Minister Kirill Molodtsov told a briefing in comments cleared for publication on Monday that the country would produce 277 million tons of oil products in 2016, falling to an estimated 270 million tons of higher quality fuels in 2017.
"This is mainly related to the rise in refinery yield," he said, adding that he did not expect fuel shortages next year despite extensive plans for refinery maintenance.
He said gasoline production was estimated at 39.8 million tons in 2017, with diesel output seen at more than 70 million tons.
Production of fuel oil could decline by more than two million tons due to an increase in export duty from Jan. 1 2017.
Molodtsov also expected a slight rise in Russia's oil export in 2017. He noted that it is planned to export around 253.5 million tons of oil in 2016, or 4.8% more than in 2015, RIA Novosti reported. At the same time, the energy minister said that much will depend on the mechanism of implementation of the agreement reached between OPEC and non-OPEC countries to cut the oil output. During the Vienna meeting held Nov.30, OPEC members decided to implement a new OPEC-14 production target of 32.5 million barrels per day. Later, non-OPEC countries agreed to cut oil output by 558,000 barrels per day during the meeting held Dec.10.
Eleven non-OPEC countries agreed to reduce oil output: Azerbaijan, Bahrain, Brunei Darussalam, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, the Russian Federation, Republic of Sudan and Republic of South Sudan.
Russia expects a slight rise in oil exports next year.
source: Financial Tribune
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