Russia is responsible for 25 key crude and natural gas projects expected to commence operations by 2025, dominating the Former Soviet Union’s (FSU) oil and gas production, according to a new report.
According to research and consulting firm GlobalData, two other key planned projects in the FSU region are in Kazakhstan, led by the Kashagan crude oil project, which is thought to be the world’s largest discovery in the last 30 years.
Senior analyst Anna Belova, said: “Russia will account for most of the planned oil and gas production in the FSU, with Gazprom contributing the highest oil and gas production in the region by 2025.
“The company’s key planned assets are expected to contribute 1.89 million barrels of oil equivalent per day (mmboed) of production, followed by key projects at Lukoil and Rosneft at 0.92 mmboed and 0.88 mmboed respectively.”
Rosneft will lead the FSU in terms of operatorship of planned projects, and will operate ten planned assets, the highest number in the region. Lukoil and Gazprom occupy the second and third places, with four and three planned assets respectively.
GlobalData states that these key planned projects throughout the FSU are expected to contribute 2.53 million barrels of oil per day to global crude production and 13.5 billion cubic feet per day to global gas production in 2025.
Despite the dominance of Russia in terms of the number of planned projects, Kazakhstan is expected to lead the FSU for capital expenditure (capex) on key developments through to 2025.
Belova continues: “With respect to key planned projects, Kazakhstan is forecast to have capex spending of US$53.7 billion between 2016 and 2025, of which US$53.1 billion will be spent on the huge Kashagan project, which is slated to come online in 2017.
“Gazprom will have the highest capex spending among all the companies in the FSU region and is expected to spend a total of US$16.8 billion on key planned projects over the next 10 years.”