Kremlin-owned Gazprom has suffered from the loss of the European gas market, once the source of around two-thirds of its gas revenue, due to a deep rift between Russia and the West over the conflict in Ukraine.
It also cut natural gas production by 13% to an all-time annual low of 359 billion cubic meters (bcm) in 2023 from 412.94 bcm in 2022.
Gazprom's oil arm, Gazprom Neft has fared better than the parent company thanks to the flourishing oil business.
Now Gazprom Group, via its Gazprom Export division, is trying to raise its exposure to the oil business and increased handling of Asia-bound ESPO oil grade as well as Siberian Light oil exports.
Russian oil exports have been a stable profit maker for Moscow during the past two years despite Western sanctions, as Russia was able to diver to India and China.
Gazprom Export, which was a minor oil exporter prior to 2022, has boosted oil exports in the second half of 2023 and plans to increase shipments even more in 2024.
Gazprom's oil pipeline exports have doubled in 2023 and are expected to double again in 2024.
Russia's Pacific port of Kozmino is a key outlet for Gazprom's crude exports. ESPO Blend oil exports provide one of the best revenues for Russian oil producers compared to other routes thanks to premium quality of the grade and proximity to main customers in Asia.
Gazprom's oil loadings from Kozmino have jumped from between 30,000 metric tons and 50,000 tons per month last year to around two to three 100,000-ton vessels per month this year. These volumes are supplied in addition to the exports of Gazprom Neft, which is also an ESPO Blend oil exporter.
In May 2024, Gazprom also loaded 80,000 tons of Siberian Light grade from Novorossiisk and the company plans to continue diversifying its oil supply.
In May, the company started production at the Urengoysky oilfield that is expected to produce 1.5 million tons of condensate per year.
