Last year saw the lowest point in Russia's oil production since the collapse of the Communist regime, but the outlook is said to be brighter for joint ventures involving foreign firms.
Vadim Dvurechensky, deputy minister of Russia's Ministry of Fuel & Energy, told a London conference Russian oil and condensate production was 317 million metric tons last year, while gas flow amounted to 607 billion cu M.
Oil production fell 10% during the year. In 1987-88, Russian oil and condensate production peaked at 570 million metric tons.
Dvurechensky blamed low investment and excessive depletion under the Soviet regime, government controlled oil prices that rose slower than costs; inability of customers to pay for oil; and slow progress in changing legislation.
But he said oil and condensate production has bottomed out recently at 800,000-810,000 metric tons/day and appeared to be stable. He expects 1995 production to be 300-310 million metric tons.
Dvurechensky said Russia's 39 joint ventures produced a total 1 1.2 million metric tons of oil last year, up from 10.3 million metric tons in 1993. He expects joint ventures to produce a combined 18.3 million metric tons this year.
"Government can now grant special terms to joint ventures," said Dvurechensky. "Export tax looks likely to be abolished on Jan. 1, 1996.
"At the end of February, Duma (parliament) adopted the first draft of production sharing legislation. In 2-3 months we hope the production sharing laws will be ratified."
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