The Russian Ministry of Finance submitted to the Government of the budget for 2022, according to which the country will return to the post-Soviet maximum of oil production. Russian companies will increase total oil production and gas condensate by 8 percent to 559.9 million tons, Bloomberg writes.
According to the forecast of the Ministry of Finance, oil production will remain close to this level and from 2023 to 2024. It is expected that the country will be able to expand production after the OPEC + agreement will be weakened by restrictions on the volume of raw materials obtained. According to Bloomberg calculations, mining in Russia next year will be an average of 11.24 million barrels per day. The volume of raw materials will come close to the highest level in the entire post-Soviet story, which was recorded in 2019 – 11.25 million barrels per day. The plan of the Ministry of Finance will have to receive the approval of the Federal Assembly and President Vladimir Putin.
OPEC +, whose member is Russia, gradually restores mining after a pandemic. According to the current agreement, the organization should broadcast fuel production to 400 thousand barrels per day. It comes from Russia about a quarter of this volume. The gradual increase in production will continue until all OPEC limits are canceled. The forecast of the Ministry of Finance, as well as official Russian statistics, does not lead separate data on oil and gas condensate, therefore it is difficult to assess how much this plan is consistent with the OPEC transaction, which limits only oil production. If the terms of the contract are respected by the state, oil production in the country will reach the Dopandamemic level to May 2022.
After a fire on its refiner-processing plant in Western Siberia, Gazprom gas giant limited condensate production, which forced OPEC + to increase the goals in general performance. Nevertheless, in August 2021, oil production in Russia has declined. In May and June, a monthly drop in production was also observed. However, according to the Department of the Ministry of Energy, the CHA TEK, in the first half of September, mining recovered. Russia produced 1.457 million tons of oil and condensate per day from September 1 to September 15 – 2.6 percent more than in August. The growth provided the activities of companies “Slavneft” and “Bashneft”, as well as the gradual recovery of Gazprom production.