GlobalData forecasts the future for the former Soviet Union

According to GlobalData, 24 key crude and natural gas projects are expected to start operations in the former Soviet Union (FSU) region by 2025.

GlobalData’s report suggests that Rosneft is expected to lead the FSU in terms of operatorship of planned projects since it is responsible for nine crude projects.According to the latest forecast, key planned projects in the region are expected to contribute 2.1 million bpd of oil to global crude production and 10.4 billion ft³/d to global gas production in 2025.

Russia accounts for most of the planned oil and gas production in the FSU, with Gazprom contributing the highest production levels in the region by 2025. According to GlobalData’s latest estimates, the company’s key planned assets are expected to contribute 1.7 million boe/d of production in 2025.

Anna Belova, GlobalData’s Senior Analyst of oil and gas, explains: “Over the past two years of low crude prices, Russian production continued growing to new records aided by ruble devaluation, which reduced dollar-denominated costs, the progressive taxation system, and fiscal incentives available to select new fields. These production drivers will remain relevant in the near term, contributing to stable production until 2020.”

In terms of capital expenditure related to planned projects, GlobalData estimates Russia will lead the region with US$31.7 billion during the 2016 - 2025 period, of which US$6 billion will be spent on the Kovyktinskoye project.

Adapted from press release by Anna Nicklin

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