Golar LNG has sold significant shares in fellow US LNG player New Fortress Energy for around USD 250 million amid stock price surge, the New-York listed company…
READ MORERussia's Energy Industry
in figures
Oil reserves107.8 billion barrels
Oil production10.93 million bopd
Gas reserves37.4 tcm
Gas production701.7 bcm
Russia: Unconventional Directions
Russia’s oil and gas industry is one of the nation’s largest industrial focuses. The country is now one of the top three hydrocarbons producers worldwide and has the world’s second-largest natural gas reserves. The country is also one of the top five LNG exporters. The oil and gas industry plays a huge part in the country’s economy, traditionally making up around 45% of the federal budget. With its landscape consisting mostly of ageing oil and gasfields, the northern nation is funnelling its efforts to further develop its brownfield assets and raise exploration efforts in its unconventional greenfield options previously not viable due to technological restrictions.
While deposits exist in many areas throughout the country, producing assets are focused mainly in western and eastern Siberia. The Arctic has become increasingly important for hydrocarbons production, particularly gas. Most of Russia’s E&P efforts come from domestic firms. After a long period of mergers, the largest players in the market are Rosneft, Lukoil, Gazprom and Novatek. Following the collapse of the Soviet Union, the nation initially privatised its oil industry, but has since reverted to state control. Russia is a member of OPEC+.
The nation has extensive midstream capabilities for oil and gas, including the world’s longest crude pipeline – the Druzhba pipeline – that carries oil towards the European market. Conventionally around 60% of the country’s oil production was transported to OECD nations in Europe and fed around 20% of Europe’s refinery throughput, though recent conflicts have changed the paradigm. Europe’s reliance on Russian gas had grown over the last decade due to production drops in European countries. Before the war with Ukraine a variety of routes made it possible for Russia to feed European gas consumption without being reliant on transport directly through a single surrounding nation, namely the Nordstream, Blue Stream and Turkstream pipelines. But since the war with Ukraine broke out Russia has had to look to other markets to maintain its exports in the face of economic sanctions.
Russia has made large efforts to diversify its export markets towards Asian nations, including investment in pipelines that pump hydrocarbons directly to China, the latter of which has long remained the largest single buyer of Russian oil.
Gazprom has acquired a 27.5% stake in the Sakhalin-2 LNG project from Shell for around USD 1 billion.
READ MORESeveral OPEC+ members have extended voluntary oil production cuts of 2.2 million bpd into Q2 2024.
READ MORERussia reports
More reportsUS President Joe Biden has announced new sanctions against Russian entities, including oil shipping giant Sovcomflot.
READ MORERussia's state-controlled Rosneft has reported net profits of around $14 billion in 2023, a 47% increase over 2022.
READ MOREHungary has agreed to co-operate with Croatia on increasing the capacity of the Adriatic pipeline.
READ MORESaudi Aramco has received orders from the government to set its maximum sustainable capacity to 12 million bpd.
READ MOREOil prices have risen sharply as the US, UK and the EU begin phasing out imports of Russian hydrocarbons, investing.com announced today.
Brent oil futures rose by…
READ MOREExxonMobil is beginning the process to discontinue operations and development of the Sakhalin-1 venture in Russia as other super-majors pull support, the American…
READ MOREThe year is off to a great start for the Mozambican LNG projects as the Coral-Sul FLNG vessel to be used in Area 4 of the Rovuma Basin has just arrived in the country.…
READ MORELukoil has signed an agreement with state-owned Gazprom Neft to sell 50% equity of its subsidiary Meretoyakhaneftegaz to develop an oil and gas cluster next to the Kara…
READ MORETarek El Azhary, general manager of StratoChem Services, talks to The Energy Year about areas with the most upstream potential in Egypt and the company’s approach to…
READ MORERussia’s government has formed a carbon-capture-and-storage (CCS) initiative to produce blue hydrogen, the state announced late last week.
The group includes the…
READ MOREOil was down Monday morning in Asia, with prices falling more than 1%. Investors continued to digest the Organization of the Petroleum Exporting Countries and allies…
READ MOREOil was up Tuesday morning in Asia even as the Organization of the Petroleum Exporting Countries and allies (<a…
READ MOREOil was up Wednesday morning in Asia as a strong economic rebound of key consumers boosted fuel demand and drained bloated inventories. Investors now await a…
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