Roseneft statement on increasing its daily oil and gas condensate production in the third quarter this year came after OPEC and oil producers led by Russia agreed to ease on the production curbs implemented in June.
The company stated that it had the capacity to raise third-quarter liquids production by 200,000 barrels a day – out of which 120,000 barrels a day already being added between the months of June and July.
The overall Russian oil output had risen by 150,000 barrels per day in July a month ago. This surpassed the amount Moscow had promised to add following a meeting of global oil producers in Vienna in June, according to data that the energy ministry showed on Thursday.
Rosneft stated that daily liquids production in the second quarter had rised 0.8 percent compared to the same period last year to 4.6 million barrels overall. Average daily hydrocarbon production in the second quarter had risen to 0.1 percent in year-on-year terms to 5.71 million barrels, it stated further.
The Russial oil giant also stated that its board of directors had approved the structure and parameters of a share buyback programme worth up to $2 bn. This programme would run until the end of 2020, according to the company—which also reserved the right to partially cancel it if necessary. The maximum amount of shares and depositary receipts to be repurchased would not exceed 340 mn shares or 3.2% of the company, according to it.
The buyback is part of the company’s strategy to increase its overall profitability, reduce capital expenditure and debt, and lift its share price – which is currently lagging behind its global rivals. Just under 10.5 % of Roseneft shares are currently traded on the market. The Russian government owns 50.1%, BP owns 19.75% and Quatar’s sovereign wealth fund owns 19.5%.
The company announced a series of measures on May 1 to improve shareholder returns, such as a share buyback and plans to cut total debt and trading liabilities by a minimum of $8 bn.