The cost of oil production in Russia is on average $2 per barrel, said in an interview to “Rossiyskaya Gazeta”, the Deputy Minister of energy of Russia Kirill Molodtsov.
“The average production cost of a barrel of Russian oil is about $2. The cost of producing hard-to-recover and offshore reserves above $20”, he said.
These indicators vary significantly depending on the cycle of mineral development. “With falling production cost is higher since at the same cost level is extracted less oil” — explained the Deputy Minister.
Molodtsov also said that the energy Ministry does not expect reduction of investment by oil companies in 2016, the total volume of investments could reach 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”, — he said.
According to estimates of industry experts, the cost of oil production in Saudi Arabia is comparable to the Russian Federation. Energy Minister Alexander Novak said earlier that oil production in Russia will remain profitable even with the drop in oil prices to 15 dollars per barrel.
