Ministry of Energy reveals oil production cost in Russia

The oil production cost in Russia is $3 to $8 per barrel, Deputy Energy Minister of Russia Anton Inyutsyn said.

Deputy Energy Minister pointed out that due to the low cost of oil production, $3 to $8 per barrel, and the increase in the refining depth from 70% to 80% (and above 98% at a number of refineries), Russian resource base remains one of the most competitive in the world.

According to Inyutsyn, in 2016 Russia not only retained its leadership in the supply of gas to global markets, where its share is 20% but also regained its first place in the supply of liquid hydrocarbons by exporting 12% of oil and 9% of oil products.

Ministry of Energy reveals oil production cost in Russia

The main challenges for the Russian fuel and energy industry are related to its lack of technology and limited access to financial resources, partially because of the sanctions. The strategy is to increase technological cooperation with partners from the Asian-Pacific Region countries and other regions that have not joined the sanctions, create investment funds with them to finance major projects, and organize import substitution of critical equipment, Inyutsin stressed.

In March this year, Russian Energy Minister Alexander Novak said that there are proven reserves of oil and gas enough for more than 50 years in Russia, and the oil production cost is $10 to $15 per barrel. In March 2016, Deputy Energy Minister Kirill Molodtsov said that the production cost of a barrel of oil in Russia was about $2 on average and $20 for hard-to-recover reserves and offshore projects. In turn, Head of Rosneft Igor Sechin said that the cost of oil production at the company’s fields was less than $3 per barrel.



Similar oil and gas industry news from Russia:
Possible extension of oil production cut agreement
Production boost in Lukoil

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