to maintain the level of oil production in Russia, it is necessary to increase investments by 62 billion rubles annually – Kommersant

In 2024-2030, Russian oil companies need to increase investments by 62 billion rubles. per year to maintain the current level of oil production. This was reported Vedomosti with reference to a review by Kasatkin Consulting (ex-Deloitte in Russia).

Investments in oil production in Russia in 2022 increased by 17.7% to 1.8 trillion rubles. The review by Kasatkin Consulting notes that oil companies continued to actively invest in the first quarter of 2023, but in the second quarter they began to gradually reduce investments. According to the forecast, by the end of 2023, investments in the industry will decrease by 7.6% compared to 2022, to 1.68 trillion rubles.

Kasatkin Consulting gives three scenarios for the development of the situation with oil production in 2024-2030:

• It will be possible to maintain oil production at the level of 2023, provided that investments increase by 62 billion rubles. or 434 billion rubles. for the entire period.
• The volume of oil production will decrease by 20.2%, to 411 million tons by 2030, while maintaining investments at the current level.
• Oil production will grow by 11% with an increase in investments by 90 billion rubles. per year and reaching the level of 2.3 trillion rubles. annually by 2030.

According to Kasatkin Consulting, the largest players in the oil and gas market can increase investment in the industry. According to the forecast, investments of multinational companies (ExxonMobil, Shell, Chevron, BP, TotalEnergies, Eni, Equinor) in 2023 will grow by 4.4% to $115.3 billion, national companies (SaudiAramco, CNPC, NIOC, Petrobras, PDVSA, Gazprom, Rosneft) — by 10% to $154.3 billion.

In February, Deputy Prime Minister Alexander Novak announcedthat Russia in March will reduce oil production by 500 thousand barrels per day. After the reduction was extended until the end of 2023. Together with Russia, Saudi Arabia, Iraq, the United Arab Emirates, Kuwait and other OPEC+ countries agreed to reduce production in May by a total of 1.6 million barrels per day. At the same time, according to OPEC +, in March Russia reduced production by only 300 thousand barrels per day.

Olesya Pavlenko