Monday, 11 May 2020

Russia's Tatneft produced 1.994 million tonnes of oil in April, down from 2.442 million tonnes in March

Tatneft (Russian: ПАО «Татнефть») is traded as: MCX: TATN, FWB: TTFB. This is a Russian vertically integrated oil and gas company. The headquarters are in the city of Almetyevsk. It is the 6th largest oil company in Russia.

The main activities of Tatneft are:
- gas and oil exploration and production
- gas and oil refining and marketing
- petrochemicals (including Nizhnekamskshin tire-making plant)
- banking services (through its subsidiaries Bank Zenit and Bank Devon-Credit)

Russia actually raised oil and gas condensate output in April to 46.45 million tonnes, or 11.35 million barrels per day (bpd), from 11.29 million bpd in March. This is happening before it makes cuts this month under a global supply pact.

The economic fallout is significant from the new Coronavirus Covid-19 Pandemic. The economic situation needs to be improved. The Organization of the Petroleum Exporting Countries, Russia and other allied producers, a group known as OPEC+, agreed last month to cut their combined oil output by about almost 10 million bpd (about 10% of global supply) in May and June.

The pandemic resulted in decreased demand for oil around the world. Countries are taking steps to reduce the production and supply of oil. The United States, Norway, Canada and Brazil may add cuts that would bring the total reduction to 20 million bpd (about 20% of global supply), although the Covid-19 crisis has decreased demand by as much as 30%, driving down prices.

Russia is expected to cut its oil production by 2.5 million bpd from a baseline of 11 million bpd in May and June.

Tatneft, Russia's mid-sized oil producer, certainly created a large reduction. Tatneft produced 1.994 million tonnes of oil in April, down from 2.442 million tonnes in March. The reduction is equal to about 90,000 bpd, or 16% from March.

Storage capacity for oil is full in many places right now. European demand for oil is weak.

The history of Tatneft is interesting. It was created in 1950 by the merger of several local oil companies and related industries. Tatneft is listed on the MICEX-RTS, and its ADRs are traded on the Frankfurt (ISIN: US6708312052) and London (LSE: ATAD) stock exchanges. For years, Tatneft before traded under the ADR (stock symbol TNT). It retired that listing in 2006.

Here are the Tatneft Subsidiaries:

Bank ZENIT Public Joint Stock Company
Tatneft Europe AG
OAO Taneko
Tatneft Oil AG
OOO Tatneft-Neftekhim Management Company
Tatneft-Alabuga OOO
Solid Management CJSC
Joint-Stock Company "United leasing company Center-Capital"
Texneft Inc.
Oao Tknk
Azs OAO Tatneft
Tatneft-Aktiv OOO
Tatneft Finance plc
OOO Tatneft - AZS Zapad
TATNEFT-TSBPO RBO I ST Open Joint-Stock Company
Tatneft-TransServis Management Company
ZAO Yarpolymermash-tatneft
OOO Tatneft-Neftekhimsnab
OJSC Kalmneftegaz
Nizhnekamskresursy OAO
ZAO Severgaznefteprom
SeaGroup International, Inc.

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