MOSCOW, May 12. /TASS/. Increasing Russia’s oil production to 540 mln tons will require the large-scale development of hard-to-recover reserves, and adjusting the fiscal system will be necessary to incentivize their development, Russian Deputy Prime Minister Alexander Novak said in his article for Energy Policy journal.
"In the coming years, we plan to return to an annual production level of 540 mln tons of oil. This figure is expected to be maintained through 2050. Achieving this will require timely replenishment of the resource base, primarily through the integration of greater volumes of hard-to-recover reserves and the deployment of more advanced technologies," Novak noted.
He emphasized that, at present, hard-to-recover, waterlogged, and depleted reserves account for about 60% of Russia’s total oil reserves. "To encourage their development, the fiscal system must be fine-tuned to make investments in new reserve categories and technologies economically viable," the Deputy Prime Minister added.
He also stated that mechanisms to boost geological exploration will continue to be refined, including the creation of testing sites for piloting new technologies. "This will enable the development of more than 5 bln tons of new reserves, ensure full replenishment of the mineral resource base, and facilitate the development of strategically important regions such as the Arctic, Eastern Siberia, and the Russian Far East," Novak wrote.
According to Russia’s Energy Strategy through 2050, the country is expected to reach an oil production volume of 540 mln tons by 2030 and maintain that level through mid-century. Meanwhile, the Ministry of Economic Development forecasts that this production level could be reached as early as 2028.