Related Articles
Forward article link
Share PDF with colleagues

Russia in strong position for price war

Oil producers in the country have relatively low upstream costs and greenfield projects ready to roll

Russian producers are ready for a war of attrition with Saudi Aramco, but some will handle the price collapse better than others. And having split with Opec+ in early March, Moscow is unlikely to change course anytime soon. Russia’s upstream costs average $4.70/bl oe, according to Moscow-based ratings agency ACRA. This is down from $5.60/bl oe last year, thanks primarily to depreciation of the rouble. At $25/bl, extraction and export taxes add a further $9/bl. But as tax breaks apply to many Russian fields, producers will continue to generate positive cash flow even if oil slides to $10/bl. Russia’s leading state firms Rosneft and Gazprom Neft are in a stronger position to weather the down

Comments

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
Kuwait and Oman hope for peace dividend
26 January 2021
More cordial Saudi-Qatar relations raise hopes for economic and energy investment progress in other GCC allies. But serious challenges remain
Pavilion prepares for carbon neutrality as normal
26 January 2021
The Singaporean firm is laying the foundations for when carbon-neutral LNG will be a requirement
Caracas turns to capitalism for survival
26 January 2021
Venezuelan government makes moves to liberalise oil sector as economic sanctions push production to 50-year low
Sign Up For Our Newsletter
Project Data
Maps
PE Store
Social Links
Social Feeds
Featured Video