Rosneft’s hydrocarbon production volumes in 2017 grew 6.2% year-on-year to 281.7 mmtoe (5.72 mmboe per day).
In 2017, the Company produced 225.5 mmt of liquid hydrocarbons (4.58 mmboe per day), an average daily production increase of 7.6%. Whether excluding Bashneft’s operating results or including them as from January 2016, the Company demonstrated strong production growth in 2017 despite the external limitations applied in October 2016.
In 2017, the Company set new record highs in drilling and well workover activities. Production and exploration drilling grew 29.5% and 72% respectively year-on-year, and total drilling reached a record high of over 12.4 mln m. The Company set a sidetracking record for the third consecutive year in 2017, the previous record being surpassed by 10% and totaling now almost 1.3 thousand of completed sidetracks. The share of in-house drilling crews within the Company’s total drilling footage remained steady at around 60%.
At the end of 2016, the Russian Federation entered a production cut deal with OPEC countries and a number of major independent oil producing states. To ensure Russia’s compliance with the deal, Rosneft has cut its output proportional to its share of total Russian production. The reduced production has caused many assets to perform below potential, although production cuts do not extend launch timelines scheduled for new assets.