Info!
UPDATED 1 Sept: The EI library in London is temporarily closed to the public, as a precautionary measure in light of the ongoing COVID-19 situation. The Knowledge Service will still be answering email queries via email , or via live chats during working hours (09:15-17:00 GMT). Our e-library is always open for members here: eLibrary , for full-text access to over 200 e-books and millions of articles. Thank you for your patience.

Russian investment to secure stable supply of Russian crude through 2021

Over $79.4bn in capital expenditure will be spent by Russia-focused operators on oil projects over the next four years, according to GlobalData. Over 16.4bn barrels will be produced by 1,565 Russian fields over this period, with new projects contributing 636mn barrels of crude and condensate.

Anna Belova, Senior Oil & Gas Analyst, Global Data, comments: ‘This is to ensure that the country’s production remains at 11mn b/d. Russia has 34 key oil projects and 14 gas projects in the development pipeline. The contribution of new fields to the already producing oil and condensate fields will have Russia maintaining its oil production for over four years.

Rosneft is expected to drive Russia’s oil and condensate production, holding a 41.3% share of production in 2021. Gazprom Neft and Lukoil follow, with 15.1% and 14.6% of 2021 production, respectively.

Rosneft will also lead in greenfield oil projects, according to the market analyst, with 16 planned in the near future. Other major operators involved are Gazprom and Surgutneftegas, with six and five projects, respectively.

Belova continues: ‘We estimate that the average development break-even price for crude projects in Russia will be at $30/b compared to conventional oil projects averaging $27/b.’

Russian heavy oil projects come online with a development break-even oil price of $70/b on average, while shallow water projects require an oil price of $57/b to break even. Onshore projects have a development break-even price of $28/b reports GlobalData.

Conventional oil fields account for 14.5bn barrels of production, heavy oil contributing 652mn barrels, and the remaining 1,283mn barrels comprising condensate production from gas fields. Onshore fields produce almost 88% of Russian crude and condensate, with only 2,052mn barrels of liquids coming from shallow water developments over the next four years.

News Item details


Journal title: Petroleum Review

Countries: Russia -

Please login to save this item