Russian oil production to remain stable over next 5 years despite sanctions
Oil production in Russia will remain stable over the next five years, despite international sanctions, as the state company PJSC Rosneft begins extraction at a new large Arctic project.
Source: Bloomberg, citing data from the International Energy Agency
It is expected that the country's daily oil production will increase on average from 10.77 million barrels in 2025 to 10.83 million barrels in 2030.
This is still below the 11.09 million barrels per day produced in 2022, when the industry was subjected to international sanctions in response to Russia's invasion of Ukraine. Since then, the country has adapted to the restrictions by using a vast shadow fleet of tankers to sell its oil to Asian customers.
Quote: "Russia acknowledges that substantial future development will require more capital and high-cost technology that have grown harder to secure due to sanctions," the report reads. "But we expect supply to hold broadly steady through 2030 as top Russian producer Rosneft taps further into its giant Vostok Oil project, which helps to offset declines at its aging oil fields."
Rosneft continued the implementation of the Vostok Oil project even after international traders Vitol Group and Trafigura Group Pte Ltd. sold their shares to avoid Western sanctions. The Russian company plans to start extraction this year.
Background:
- The first Russian oil tanker sanctioned by the US secretly delivered its oil to another vessel near Singapore, having travelled 12,000 kilometres to do so.
- Exploiting a loophole in the sanctions, Türkiye disguises Russian oil as its own and exports it to the EU, bringing Russia billions in profits.
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