Bloomberg News

Russia Needs $600 Billion Investment to Maintain Oil Output

October 11, 2012

Russia requires $600 billion of investment over the next 20 years to maintain oil production at its current level, according to TNK-BP.

The country faces a challenge to offset the drop in output from brownfield, or existing, sites by fully developing greenfield, or new deposits, Jonathan Kollek, senior vice- president of sales, trading and logistics at TNK-BP, said today at a conference in Geneva. “However, if this challenge is met in the right way, Russian companies have the chance to develop into super oil majors.”

Output in brownfield sites in Western Siberia decreased by more than 20 million metric tons from its peak level in 2006 to 400,000 barrels a day, Kollek said. Russia has discovered fields that possess a potential production of 100 million to 150 million tons a year, he said.

Russia’s crude and condensate output climbed to a post- Soviet record of 10.41 million barrels a day in September, according to data from the Energy Ministry’s CDU-TEK unit on Oct. 2.

To contact the reporter on this story: Rupert Rowling in London at rrowling@bloomberg.net

To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net


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