Fitch forecasts reduction of oil extraction a mature deposits in Siberia

​The reduction of oil extraction at the key brownfields (deposits at the final stages of development with the level of development of over 75%) in the Western Siberia is likely to stay in the near future due to quite a high cost of drilling.

The price fall for oil will lead to the slowdown of extraction fall at these projects, experts think. But in the long-term perspective they may face a serious threat from the part of the western sanctions due to the restriction of the access to the long-term financing and modern technologies.

In H1 2015 Lukoil’s oil extraction in the Western Siberia fell by 4.3% in annual terms, gas- by 4.8%. Gross oil extraction of Rosneft in H1 2015 fell by 1%.

Experts think that drilling volumes will stabilize in H2 2015 and will gradually start to recover in 2016 even if the oil prices don’t grow.