Russia’s oil, gas potential has yet to be reached – BP CEO

06 March 2013 18:27  [Source: ICIS news]

HOUSTON (ICIS)--Russia may have the largest combined oil and gas production and reserves in the world, but it has only scratched the surface of its potential, BP CEO Bob Dudley said on Wednesday.

Speaking at IHS CERAWeek, Dudley talked of the “enormous scope” of opportunities for increasing production in Russia through enhanced recovery in brownfield developments in the western Siberian and the Volga-Urals fields, as well as through exploration and production in greenfield developments in eastern Siberia and the Yamal Peninsula.

The country has great potential for development of tight and shale oil, he said, and it already is leading the way in northward oil and gas exploration.

Arctic development could be the Russian “story of the next decade”, Dudley said.

All that development will cost a lot of money - “investment on an epic scale”, the CEO said.

But that cost is similar to what energy companies such as BP face in the US, and the exploration and development environment in Russia is getting more conducive for companies to make that investment, Dudley said.

“The US and Russia are both huge producers and places where things are moving fast,” he said. “After decades of false starts, the US seems to have hit upon a successful energy policy mix, and Russia is well on its way. I trust both countries will maintain an open, welcoming environment for energy development.”

In a transaction set to be completed this year, BP’s is selling its TNK-BP investment to Rosneft, which will result in Rosneft becoming Russia’s largest oil company. BP will get a nearly 20% stake in Rosneft.

By: Jeremy Pafford
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