Russia's Rosneft reports profit of 323 billion rubles in 1Q23

- Sakhalin-1 project is primary growth driver, increasing daily production by 1.8-fold quarter on quarter, says company CEO

Russian oil giant Rosneft recorded a net income of 323 billion rubles (roughly $4 billion) in the first quarter of 2023, representing a quarter-on-quarter increase of 46%, the company said in its financial results statement released Wednesday.

The company was able to achieve production growth of both liquid hydrocarbons and gas despite the deteriorating external environment during the first three months of the year, Rosneft’s Chairman and Chief Executive Officer Igor Sechin was quoted as saying in the statement.

'The Sakhalin-1 project was the main growth driver, increasing daily production by 1.8 times quarter-on-quarter,' Sechin added, noting that ExxonMobil’s exit as the former project operator had a negative impact on the technical conditions of field development.

On March 1, the US energy company ExxonMobil exited Russia’s Sakhalin-1 oil and gas project in the country’s far east.

ExxonMobil, with partners including Russia’s Rosneft and companies from India and Japan, held a 30% share in the project, which had a daily production capacity of 250,000 barrels.

Later on, the Russian government 'unilaterally terminated' its involvement in the project and transferred its ownership to a Russian operator.

The company's net income attributable to Rosneft shareholders in 2022 amounted to $10.5 billion.

Rosneft’s revenue for the January–March period of this year totaled $22.3 billion.

1 Russian ruble equals US$0.012 at 1242 GMT as of June 1.

By Sibel Morrow and Duygu Alhan

Anadolu Agency

energy@aa.com.tr