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. Last Updated: 07/27/2016

Pipeline Exports Hit All-Time High in June

Oil exports via pipeline monopoly Transneft rose by 140,000 barrels per day in June to an all-time high of 3.53 million bpd from 3.39 million in May, Energy Ministry sources said Wednesday.

Oil output in June from Russia also hit a post-Soviet high of 8.38 million bpd, up from 8.29 million bpd in May and an 11 percent increase from 7.56 million bpd in June 2002.

Transneft accounts for just over half Russia's oil exports, which, at about 6 million bpd in total, are now challenging Saudi Arabia's as world leader.

"Transneft exports have never run above 3.5 million bpd. This is a good strategic level," a source in the ministry said.

"A year ago nobody expected to see these volumes. But what is amazing is that there will be another jump in July due to Primorsk and Novorossiisk," another source in the ministry said.

Transneft has scheduled an unprecedented export level of over 1 million bpd in July from the Black Sea port of Novorossiisk, despite planned pipeline maintenance for two days.

The monopoly also said it was on schedule with the upgrade of its Primorsk port on the Gulf of Finland, which is expected to load 320,000 bpd in July, up from the previous regular level of 240,000 bpd.

The first results of this upgrade, which will turn Primorsk into the largest northern oil outlet by the middle of next year, were seen in June, when the port loaded one additional 730,000-barrel cargo.

June exports were also boosted by the delivery of an additional 1 million barrels through the Druzhba pipeline to Poland and Germany.