First Published in Oil and Gas Law Review on Russia, 2017
By Natalya Morozova and Rob Patterson
With Proven oil reserves of more than 109 billion barrels and natural gas of over 32 million cubic meters (according to BP's Statistical Review of World Energy 2018), Russia is a major global producer, supplier and consumer of oil and gas. In 2016, Russia was once again the world's largest exporter of natural gas by pipeline and its production and export of oil have again increased. Its share of total global exports of LNG remained modest, but comparable with historical exporters of LNG, such as Algeria. Russia's economy continued to be heavily reliant on revenues derived from its oil and natural gas exports and taxes paid by major hydrocarbon companies.
In the medium term, Russia needs to explore for and discover significant additional resources in order to maintain and grow current production levels. This has resulted in an increased focus on exploration both offshore and of unconventional resources, as well as on exploration both offshore and of unconventional resources, as well as on exploration in the Far East. The worsening geopolitical situation since 2014 and the sanctions that are targeted specifically at the ability of Russian oil and gas companies to access external financing and certain technologies, have not so far had a material impact on Russia's ability to maintain growth in the resources basis and production levels. Read the entire article here.