Russian Oil Production Rises in August, Sanctions Yet to Bite
"Struggles in accessing foreign funding may affect investments in oil production," Valery Nesterov, an analyst with Sberbank CIB, said, warning that output levels may also be hit in the next couple of years.
Russia's largest oil producer Rosneft, which has been targetted by sanctions, has offered Chinese investors a stake in its huge Vankor oil project, its second biggest, which pumped an average 442,000 bpd in August.
The ministry estimates that Russia will need around $150 billion in annual investments to sustain output at mature fields and bring new fields on stream.
But sanctions look set to increase. Italian Foreign Minister Federica Mogherini told the European Parliament on Tuesday that European Union governments will decide on a package of new sanctions against Russia by Friday.
BUSINESS AS USUAL
In the meantime, Russian Energy Ministry data shows that output at projects under production-sharing agreements (PSA) with foreign-owned firms continues.
There are three PSAs in Russia – the Total-led Kharyaga project, ExxonMobil-led Sakhalin-1 and Gazprom-controlled Sakhalin-2.
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