/ News
October 19, 2017

Alexander Dyukov: “We will continue production even at prices of USD 10-20 per barrel”

During the plenary session ‘The Russian Fuel and Energy Industry: National Interests and Global Trends’ held as part of Russian Energy Week 2017, Gazprom Neft CEO Alexander Dyukov offered assurances that oil production will continue to increase even if low prices tumble. “We will continue production even at prices of USD 10–20 per barrel. The reason for this is the quality of reserves, the availability of infrastructure, the rather large amount that has already been invested in the construction of production facilities, and, of course, our tax system, which is unique and allows us to be effective at low prices. It is also worth noting the direct correlation between the rouble/dollar exchange rate and, accordingly, oil prices. We see considerable potential for increasing production”, Dyukov said.

Dyukov said the only thing lacking in the current tax system is an adjustment that would make it possible to use tertiary methods for hydrocarbon extraction and work with hard-to-recover reserves.

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