The Ministry of Natural Resources of the Russian Federation Has Commented on the Profitability of Oil Reserves in the Country
Only 13 billion out of 31 billion metric tons of oil reserves in the Russian Federation are considered economically viable, while the majority are hard-to-recover reserves, and at the current production rate, the total reserves will last for 26 years, according to Alexander Kozlov, the Minister of Natural Resources and Environment of the Russian Federation.
Kozlov explained that Russia currently possesses 31 billion metric tons of oil reserves and 95 billion metric tons of oil resources. The difference lies in the fact that resources still require geological exploration—conducted both by the state and private companies—before they can be converted into classified reserves.
“Out of the 31 billion tons of reserves, only 13 billion tons are profitable. With the current production level (516 million tons per year), these reserves will last for 26 years. A significant portion of these reserves consists of hard-to-recover categories, which were made economically viable thanks to timely tax incentives,” Kozlov stated during a Government Hour session in the State Duma (the lower house of the Russian parliament).
Russia’s oil and condensate production totaled 516.1 million metric tons in 2024. According to the forecast of the Ministry of Economic Development, production is expected to decline slightly by 0.02% in 2025, to 516 million tons. Output is then projected to rise to 525.2 million tons in 2026, 532.6 million tons in 2027, and reach 540 million tons in 2028.