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Rosneft chief: Oil production in Russia may reach 700 million tons annually

September 07, 2015, 8:21 UTC+3

Europe remains the key consumer of oil for Russia, state oil company Rosneft chief Igor Sechin notes

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© Yegor Aleyev/TASS

MOSCOW, September 7. /TASS/. Oil production in the Russian Federation may be brought to 700 million tons annually in the near future, Rosneft state oil company chief Igor Sechin said while making a report during the FT Commodities Conference.

Sechin said that Russia continues to drill at a normal pace, and "drilling activity as a whole is maintained at a stable level."

Earlier, Russia’s Economic Development Ministry raised its assessment of oil production in Russia in 2015 to 530.5 million tons.

Oil production in Russia in 2014 reached 526.7 million tons.

Europe remains the key consumer of oil for Russia, Sechin noted.

"The goods" will be sold to the market that offers the most attractive price, he said.

"Certainly, Europe is the key consumer for us, but the growing market of the Asia-Pacific Region is extremely attractive for us. Now, despite rather big volumes in the direction of the APR, it does not exceed 13-15% in the overall structure of our exports," he explained.

Earlier, in an interview with the German edition of Der Spiegel Sechin noted that it would be unprofitable for Europe to refuse purchases of Russian oil and gas. He also stated that by cooperating with China, Rosneft does not "dismiss Europe", but "diversifies markets." Then Sechin said that China's share in Rosneft exports amounts to 13%, the share of European countries — 39%.

China oil and gas consumption

Rosneft expects oil consumption to grow in China two percent annually by 2020, the company's chief Igor Sechin said in his report.

"By the end of the decade, we are expecting oil consumption growth in China at 2% annually," Sechin claimed.

According to Sechin, China earlier provided "two-thirds" of the global growth in oil demand, now the figure amounts to roughly 20-25%. "The Asia-Pacific markets in 2015 have a much greater degree of safety than, for example, in 1997-1998," he said.

As TASS reported earlier, Sechin said that the global demand for energy continues to grow even in conditions of continuing economic crisis, especially in the economies of certain regions.

Rosneft chief wished successes to Russian state energy company Gazprom in gas supplies to China and noted that Rosneft has a sufficient potential for possible gas deliveries to China, but that "there is a legislatively formalized monopoly on gas exports."

"Certainly, the Chinese market is extremely attractive. Consumption there totals 150 billion cubic meters, it will double within the next five years," Sechin said. "Gazprom is working with Chinese partners on gas supplies along two routes: the eastern and western ones, at which the volume may reach 68 billion cubic meters. We wish them successes. Although we also have the resource potential."

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