Russia must explore or loose oil

Russia must explore or loose oil, gas production lead: ministry

Moscow (Platts)--4Nov2004


Russia must urgently boost exploration activity or loose its position at the
top of the league of world oil and natural gas producers, Yuri Trutnev,
minister of natural resources said Thursday. 

Trutnev unveiled a programme
drawn up by the ministry calling for a major increase in stagnant upstream
spending and changes in resource legislation that would stimulate investors to
get out and search for oil. According to the ministry, annual investment of
some $4-bil is required to replace Russian reserves. But current spending
amounts to little more than $900-mil/year. The ministry wants the government
to approve federal spending of Roubles 1.78-tril ($61.87-bil) by 2015 on
exploration, and evaluation of new reserves. Proposed amendments to the law of
natural resources will, if accepted, allow explorers automatic rights to
develop any discovery. Fixed work programmes and schedules will be fixed in
licenses which will be awarded under competitive conditions.

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