Deputy PM predicts decline in Russia's oil production

Russian Deputy Prime Minister Alexander Novak has forecasted that the total production of oil and gas condensate in Russia will decline to between 515 and 521 million tons by the end of 2024.

In contrast, Russia's oil and gas condensate production in 2023 was approximately 527 million tons, while the figure for 2022 stood at 535 million tons, Caliber.Az reports per Russian media.

Novak's expectations indicate a potential decrease of 6 to 12 million tons compared to 2023, and a drop of about 14 to 20 million tons when compared to 2022.

Novak attributed this decline in production to Russia's commitments under the OPEC+ agreement. Despite the short-term reductions, he outlined a long-term goal of achieving an annual production level of 540 million tons by 2050. However, he noted that these plans do not envision a significant increase in oil exports.

Additionally, a report from Vedomosti newspaper highlighted a marked reduction in the commissioning of new oil wells in Russia. From January to June, only 3,657 new facilities were brought into operation, reflecting a 12 per cent decrease compared to the same period in 2023. While drilling volumes have decreased slightly on an annual basis, the overall trend indicates challenges within the sector as Russia navigates its production commitments and market dynamics.

By Vafa Guliyeva