Novatek Production Rose 6.9% in 2018

Russia's largest independent natural gas producer Novatek (NVTK.ME) said that total hydrocarbon production during 2018 increased by 6.9%, and had increased sales of gas.

"In 2018, Novatek’s hydrocarbon production totaled 548.4 million barrels of oil equivalent (boe), including 68.81 billion cubic meters (bcm) of natural gas and 11,800 thousand tons of liquids (gas condensate and crude oil), resulting in an increase in total hydrocarbons produced by 35.1 million boe, or by 6.9% as compared with the twelve months 2017," said a press release from the oil-and-gas company.

Preliminary natural gas sales volumes, including volumes of LNG sold, aggregated 72.12 bcm, representing an increase of 10.9% as compared with the twelve months 2017. The volumes of natural gas sold in the Russian Federation in 2018 were 66.08 bcm, and the volumes of LNG sold on international markets amounted to 6.04 bcm.

Sales volumes of LNG in 2017 were 0.1 bcm as Yamal LNG commenced LNG shipments on 8 December 2017.

The Company processed 11,017 thousand tons of unstable gas condensate at the Purovsky Processing Plant, representing a 3.7% decrease as compared with the corresponding volumes processed in the prior reporting period.

Novatek processed 6,949 thousand tons of stable gas condensate at the Ust-Luga Complex, representing a 0.2% decrease in volumes processed at the facility in 2018.

Preliminary 2018 petroleum product sales volumes aggregated 6,682 thousand tons, including 4,185 thousand tons of naphtha, 1,082 thousand tons of jet fuel, and 1,415 thousand tons of fuel oil and gasoil.

As at 31 December 2018, Novatek had 2.2 billion cubic meters of natural gas, including LNG, and 854 thousand tons of stable gas condensate and petroleum products in storage or transit and recognized as inventory.