IOCs take the long view on Russian upstream investment

Despite the sanctions and friction, Western investors aren’t ready to turn their back on Russia’s upstream

The Ukraine crisis has complicated an already uncertain outlook for western energy firms weighing up further investment in Russia. However, the government’s economic dependence on oil and gas and the eagerness of foreign companies to exploit one of the world’s last great hydrocarbons provinces mean the sometimes-fractious relationship between the firms and the Kremlin isn’t going to end quickly. The oil and gas sector accounts for around half of Russia’s budget revenues and President Vladimir Putin knows it is pivotal to the stability of the country’s otherwise shaky economy. A few years ago he called for oil production to be maintained at around 10 million barrels a day (b/d) for the forese