18/12/2017 – News / Oil & Gas / Russia / GlobalData / Gazprom / Rosneft / Lukoil
Russian upstream oil & gas projects will require $102.6bn by 2020 to maintain stable production
An average of US$34.1bn per annum in capital expenditure will be spent on 1,673 oil and gas fields in Russia between 2018 and 2020, according to GlobalData, a leading data and analytics company.
Capital expenditure into Russian traditional oil projects will add up to US$55bn over the three-year period, while heavy oil fields will require US$7.1bn over the same period.
Onshore projects will be responsible for over 85 per cent of the US$102.6bn of upstream capital expenditure in Russia, or US$88bn by 2020. Russian shallow water projects will necessitate US$14.6bn in capital expenditure over the period.
Gazprom leads capex drive
GlobalData expects that Gazprom, together with Gazprom Neft, will lead the country in capital expenditure, investing US$37.5bn into upstream projects in Russia by 2020. Rosneft Oil Company and Lukoil Oil Company will follow with US$30.9bn and US$14.1bn invested into Russian projects over the period.
Gazprom’s producing Bovanenkovskoye field will lead capital investment with US$5bn spent between 2018 and 2020, followed by Gazprom’s planned Kovyktinskoye gas field with US$4.3bn over three years in capital expenditure. Rosneft Oil Company’s producing Samotlorskoye field will need a capital investment of US$2.6bn by 2020.
GlobalData reports the average remaining capital expenditure per barrel of oil equivalent (capex/boe) for Russian projects at US$6. Onshore gas projects have the lowest remaining capex/boe at US$4.80, followed by onshore oil and onshore heavy oil developments with US$6.80 and US$7 respectively. Shallow water oil projects have the highest remaining capex/boe at US$11.40, while shallow water gas projects need US$8.70 per boe in remaining capital expenditure.