An average of $34.1 billion per year in capital expenditure will be spent on 1,673 oil and gas fields in Russia between 2018 and 2020, according to leading data and analytics company GlobalData reported on December 16, 2017.
Capital expenditure into Russian traditional oil projects will add to up $55 billion over the 3-year period, while heavy oil fields will require $7.1 billion over the same period.
Onshore projects will be responsible for over 85% of the $102.6 billion of upstream capital expenditure in Russia, or $88 billion by 2020. Russian shallow water projects will necessitate $14.6 billion in capital expenditure over the period.
GlobalData expects that Gazprom, together with Gazprom Neft, will lead the country in capital expenditure, investing $37.5 billion into upstream projects in Russia by 2020.
Rosneft and Lukoil will follow with $30.9 billion and $14.1 billion invested into Russian projects over the period.
Gazprom’s producing Bovanenkovskoye field will lead capital investment with $5 billion spent between 2018 and 2020, followed by Gazprom’s planned Kovyktinskoye gas field with $4.3 billion over 3 years in capital expenditure.
Rosneft’s producing Samotlorskoye field will need a capital investment of $2.6 billion by 2020.
GlobalData reports the average remaining capital expenditure per barrel of oil equivalent (capex/boe) for Russian projects at $6. Onshore gas projects have the lowest remaining capex/boe at $4.80, followed by onshore oil and onshore heavy oil developments with $6.80 and $7, respectively.
Shallow water oil projects have the highest remaining capex/boe at $11.40, while shallow water gas projects need $8.70/boe in remaining capital expenditure.
