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curtail profits from the lucrative sector, Bloomberg reported on Jan. 10.
In 11M23, Russia drilled oil production wells with a total depth of 28,100km, according to industry data reported by Bloomberg, which would put drilling activity on track to beat last year’s post-Soviet record.
This is in line with previous reports that indicated Russian drilling work was on the rise, with 12.3% more wells commissioned in the first eight months of 2023 versus the same period of last year.
As followed by bne IntelliNews, following the full-scale military invasion of Ukraine, the "big four" oilfield service companies Weatherford, Halliburton, Baker Hughes, and SLB (formerly Schlumberger) has announced stopping product and technology supplies to Russia.
Nevertheless, “Russia is substantially more independent in its oil-field services than generally appreciated,” oil and gas analyst at Moscow-based BCS Global Markets Ronald Smith told Bloomberg.
“Only some 15% of the nation’s domestic drilling market depends on technologies from so-called unfriendly nations,” vice-president for exploration and production at Oslo-based research firm Rystad Energy Daria Melnik estimated.
Kpler and Moscow-based consultant Yakov & Partners estimate that for 2023 overall Russia’s production drilling is set to top 30,000 km.
However, the much faster pace of drilling could indicate long-term problems for Russia’s oil sector under sanctions, as the oil industry is pushing to maintain output from its oldest wells, while “new projects that would sustain production in the coming decades must adapt to the country’s changed circumstances”, Bloomberg notes.
9.1.1b Oil sector news
● Production
The Russian Ministry of Energy expects the level of oil production in 2024 to remain at the level of 2023, Energy Minister Nikolay Shulginov told reporters on January 27.
"Oil production in 2024 is still forecast at last year’s level," he said.
Regarding fuel supply, he noted that the country has slightly reduced exports, but increased production.
105 RUSSIA Country Report February 2024 www.intellinews.com