Low cost of production allows Russian oil companies to survive in almost any prices for raw materials. About it on air of radio station “Kommersant FM” said the Minister of energy of Russia Alexander Novak.
“The cost we have one of the lowest in different fields, it ranges from 2 to 15 dollars [per barrel],” said the Minister. However, he expressed the view that the balance of demand and supply of oil raw materials will be restored within the next year and a half.
Novak also recalled that in 2015, investments in oil sector increased in ruble terms, and praised as a “positive factor” growth of production drilling by 8 percent in the first quarter of 2016. Exploration drilling, according to the Minister, over the same period increased by 5-6 percent, which testifies to the faith of Russian oil companies in the restoration market.
Earlier in March, Deputy energy Minister Kirill Molodtsov said that the cost of oil production in Russia is $ 2 per barrel. “The indicators also vary significantly depending on the cycle of mineral development. With dropping production cost is higher since at the same cost level is extracted less oil,” he explained.
The Deputy head of the Ministry of energy also reported that in 2016 the total volume of investments in oil production will remain at the same level as last year and will amount to 1.4 trillion rubles. “The industry feels confident, there is a margin of safety that allows our companies to reduce the investment program. Taking into account the tax burden they are of course optimized, but remain approximately in figures 2015,” said Molodtsov.
