Russia exports oil making loss – Krutikhin

​The prime cost of oil extraction of the largest Russian oil company is $37/barrel, tax excluded (this is another $12). Selling oil overseas at $27/barrel, the Russian oil companies make loss. They extract oil by vandalistic methods and that will lead to a sharp fall of oil extraction in H1 2017, partner and analyst of the consulting company RusEnergy, M. Krutikhin, said.

Commenting the opinion of one of Russian state oil companies on the prime cost of oil extraction of $2.8/barrel, the expert said that it is not true. This rate refers to only one project of Rosneft – Vankor deposit. If to count the real prime cost of the Russian oil, it is $37/barrel plus $12 of taxes. Thus the real prime cost of the Russian oil is about $49/ barrel.

Speaking about shale oil, its prime cost grows to $80/barrel, oil extracted at the Arctic shelf -$150/barrel