The volume of investments in Russia’s oil industry in the east of the country will be increased by more than $1 trillion until 2035, Deputy Prime Minister Arkady Dvorkovich said.

"First of all, oil production and supplies will grow in the eastern region of the country. The part of the eastern direction in the total exports of oil and petroleum products will increase from 12 percent to 23 percent. The expected growth in capital contributions and investment will exceed $1 trillion by 2035," Dvorkovich said at the World Petroleum Congress.

As for the gas, the emphasis is also put on the development of gas fields in Eastern Siberia. Liquefied natural gas (LNG) share in Russia’s exports will grow from 6 percent to 30 percent, according to the Deputy Prime Minister. "The expected volume of investment in the industry will be $700 billion," Dvorkovich said.

Earlier, Natural Resources Minister Sergei Donskoi said Russia's known oil reserves are enough to provide a yearly extraction of 600 million tons of oil for the next 30 years.

The world's top oil producer with a daily output of nearly 11 million barrels, Russia provides more than 13 percent of the world's oil. Most of its developed oil wells are located in western Siberia.

Oil and gas exports account for 10 percent of the country’s gross domestic product. Last year, the Russian budget balanced at a cost of $114 per barrel of oil, with prices averaging around $108 per barrel.

In mid-May, Russian energy giant Gazprom and China’s CNPC sealed a historic deal for gas deliveries. The 30-year contract provides for the sale of 38 billion cubic meters of Russian natural gas to China per year, with delivery via a pipeline in the East.

The gas deal requires the two partners to run additional investment projects to develop the Chayandinskoye and Kovyktinskoye gas fields, build the Power of Siberia gas pipeline in eastern Siberia and an LNG plant in Amur Region.


 

RIA Novosti