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Production of Oil, Petroleum Derivatives and Natural
Gas, as % to the Prior Year

1999

2000

2001

2002

2003

Oil and gas condensate

100,5

106,0

107,7

109,0

111,0

Oil

100,3

105,9

107,7

108,7

111,1

Gas condensate

104,7

103,8

106,7

112,8

108,7

Primary oil refining

102,9

102,7

103,2

103,3

102,7

Automobile gas

102,2

103,6

100,6

104,9

101,2

Diesel fuel

104,2

104,9

102,0

104,7

102,0

Mazut

94,8

98,3

104,2

107,1

100,3

Natural gas

99,7

98,5

99,2

101,9

103,4

Oil gas

103,2

102,5

105,0

110,5

119,3

Source: Goskomstat of Russia, the RF Ministry of Energy.

The leaders in oil production in 2003 were: YUKOS ( 80.75 mn.t.), LUKoil (78.91 mn.t.), Surgutneftegas (54.03 mn.t.), TNK (42.96 mn.t.) and Sibneft (31.39 mn.t.). It should be noted that in 2003 YUKOS for the first time ever overrun the leader, that is, LUKoil. YUKOS also demonstrated the highest oil production rate (15.5% vs. its respective index of 2002), followed by Sibneft (19.2%). A notable rise in Rosneft’s oil output was propelled by the contribution of recently acquired ‘Severnaya neft’. At the same time, as they operate largely on old oil fields, Tatneft and Bashneft’s annual increment in output accounted for less than 1%, which resulted in their lower proportion on the market (Table 10). Finally, the operators of projects basing on production-sharing agreements produced 2.1 mn.t. of oil, or a meager 0.5% of Russia’s total output.

LUKoil, though, retained the first position as a major producer of petroleum derivatives in the country (18.0% of the total amount of oil refinery), followed by YUKOS (16.3%), TNK (8.3), Surgutneftegas (8.1), and Sibneft (7.3%).

With its share in the 2003 gas output amounting to 84.9% (according to the RF Ministry of Energy), Gasprom traditionally dominated the gas production area. At the same time, the national oil companies have been vigorously boosting their gas output (by 16.2% vs. 2002, given the 3.6% average increment across the sector). However, the proportion of oil companies in the total gas output has remained relatively low, with Surgutneftegas and Rosneft beating the others with 2.2% and 1.2% of Russia’s total gas output, respectively.

Table 10

The Structure of Oil and Gas Output in 2003

Oil output, mn. t.

The share in the total output, as %

Gas output, c.m. bn.

The share in the total output, as %

YUKOS

80,75

19,2

3,45

0,6

LUKoil

78,91

18,7

4,70

0,8

Surgutneftegas

54,03

12,8

13,88

2,2

TNK

42,96

10,2

4,97

0,8

Sibneft

31,39

7,4

1,99

0,3

Tatneft

24,67

5,9

0,73

0,1

Rosneft

19,57

4,6

7,02

1,2

SIDANCO

18,61

4,4

1,84

0,4

Slavneft

18,10

4,3

0,82

0,1

Bashneft

12,05

2,9

0,37

0,1

Gasprom

11,02

2,6

540,17

84,9

Source: the RF Ministry of Energy

The year of 2003 witnessed a notable price rise for oil and oil products in the domestic market. That to a significant extent can be explained by the extension of oil export capacities (chiefly thanks to the extension of the Baltic pipeline system). In December 2003 the average domestic price for oil (producer price) reached, in the USD equivalent, 70.1/t., while the automobile gas price averaged USD 236.9/t., which appeared record-breaking values through the reform period. At the same time, there has been a considerable gap between domestic and international oil prices: in 2003 the respective correlation did not exceed 45-50%. After approaching the pre-depreciation level, the gas prices consequently fell notably (Table 11).

Table 11

The Domestic Prices for Oil, Oil Products and Natural Gas in the USD
Equivalent between 1997 through 2003 (Enterprises’ Averaged
Wholesale Prices), USD/t.

1997

December

1998

December

1999

December

2000

December

2001

December

Oil

63,1

16,4

37,0

54,9

49,9

Automobile gas

169,6

63,4

171,9

199,3

151,5

Diesel fuel

170,0

52,9

125,0

185,0

158,5

Mazut

73,8

22,0

46,1

79,7

47,1

Gas, USD/c.m.thos.

6,6

2,1

2,2

3,1

4,8

2002
December

2003
March

2003
June

2003
September

2003
December

Oil

60,7

54,3

53,8

67,5

70,1

Automobile gas

168,8

192,4

191,9

223,6

236,9

Diesel fuel

153,8

201,9

182,2

205,5

214,3

Mazut

66,1

78,2

59,9

90,4

66,0

Gas, USD/c.m.thos.

5,9

6,2

6,2

6,1

4,4

Source: computed basing on the data of Goskomstat of Russia.

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