Russia is expected to achieve a new record in its crude output backed by five key planned projects, according to a GlobalData expert insight. The five projects are anticipated to contribute 500,000 barrels a day of crude to the global market.
Titled ‘Russia Oil Output Pumps to New Record Boosted by Arctic Projects‘, the expert insight states that the Novoportovskoye field is one of the key projects expected to start production later this year, which will supply crude to European and Asian markets via the Arctic Gate marine oil terminal.
The terminal was inaugurated by the Russian President in May this year and is built to provide access to crude produced from Russia’s Arctic projects.
A freeze in crude production was advocated by OPEC producers to control the plummeting global oil prices. Though Russia agreed to halt its crude production, it continued to invest heavily in projects indicating the growth approach adopted by Russian operators.
The five planned projects are developed to achieve peak production as early as next year and involved huge investments in drilling campaigns, as well as establishing connections with domestic and international markets.
The GlobalData report reveals that Russia has been able to sustain its oil and gas developments despite the downturn in global oil prices, due to cost and tax advantages.
Development drilling in Russia increased by 11.5% in 2015, with Rosneft drilling 60% more horizontal wells. Exploration drilling has started to grow again in 2016 after it declined on global cues.
The Russian operators appear to be confident with the low price scenario as is evident from continued development activities and an increase in exploration operations. The country’s offshore sector is also expected to recover with renewed interest from China.
