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 Russia May See Oil Production Collapse Due to Depletion of Deposits, Lukoil Vice President Says


Oil production in Russia in 2017 could be reduced by 25-70 million tons due to the depletion of oil fields in Western Siberia and the lack of funding for the drilling of new oil fields.

This was stated by vice-president of Lukoil Leonid Fedun, speaking at the Oil and Gas Forum, Censor.NET reports citing Reuters.

Russia ranks first in the world in oil production, but has problems with maintaining production volume due to depletion of the main oil-field region - Western Siberia. Its place was to be taken by the resources of hard and shelf deposits, but the crisis in relations with the West over Ukraine closed Russian companies' access to technology and capital markets, and the beginning of decline in international oil prices jeopardizes investment in the industry.

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"The high rate of decline in oil production wells on current declining well stock limits the growth of production in the Russian Federation. Decline of production in well stock limits needs to be compensated by the new drilling," Fedun's report at the national Oil and Gas Congress says.

Russia has increased the daily oil production in 2013 by 1.4 percent, reaching a new post-Soviet record - 523.276 million tons against 518.02 million tons in 2012, according to the statistics of the Energy Ministry. The growth was largely resulted by a series of tax provisions for the project.

In the first nine months of 2014, oil and gas condensate production in Russia increased by 0.7 per cent in comparison to the corresponding period of 2013 - up to 392.9 million tons, the Ministry of Energy's data shows.

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Fedun also states that the increase of Lukoil reserves in 2014 "will be more than 100 percent," and the level of oil production will be maintained or slightly increased in 2014 and stabilized in 2015.

He predicts that the rate of the world oil prices until the end of 2014 will be $ 80-90 per barrel and will hold in this range next year.

Источник: https://censor.net.ua/en/n308391