• Brent: 43.34 -0.52%
  • WTI: 40.71 -0.45%

Saudi Aramco: Russia is one of the most expensive places in the world to produce oil

Oil production is more expensive only in Kazakhstan, Azerbaijan, and in the USA onshore fields.

The cost of oil production in Russia is more than $ 40 per barrel, which is one of the highest rates in the world, follows from data published by the Saudi oil company Saudi Aramco. Analysis of the break-even price of oil in different countries for Saudi Aramco was presented by IHS Markit.

In particular, for new onshore oil projects in Russia, the cost of oil is estimated at about $ 42 per barrel of Brent grade, and for offshore projects - at $ 44. Saudi Aramco and Kuwait can boast the lowest costs associated with crude production, where the cost to producers of extracting oil is only about $17 per barrel.

Thus, the cost of oil production in Russia is more expensive than in the entire Middle East, in Nigeria and Venezuela (onshore projects), as well as in the UK and the USA (offshore fields).

Rosstat reported that the country’s total oil production cost in the 2nd quarter of 2019 amounted to 2,508 RUB per barrel, or $31.9 in line with the average exchange rate for the quarter.