Russneft: Planning to Increase Oil Production by 2% in 2021 – up to 6.5 million tons

Russneft’s business plan for 2021 assumes the development of capital investments at the level of 20 billion rubles, which will allow the construction of about 110 wells, the largest number of which will be in the Varyogansky block and the Verkhne-Shapshinskoye field. Russneft also expects to start building infrastructure in the Vostochno-Kamenny subsoil area, the reserves of which are estimated at 60 million tons.

The investment program has been cut by 30% this year, the company said. At the same time, the bulk of the funds was directed to the drilling program. In 2020, 83 new oil wells were commissioned at the company’s fields.

According to preliminary estimates, EBITDA at the end of 2020 will amount to about 26 billion rubles, which will exceed the company’s expectations at the beginning of this year after the rapid collapse of oil prices.