The region’s revenues will drop by more than a quarter. Downtime will also lower the performance of the fields.
Oil production on the Russian Sakhalin-1 project dropped 22 times due to sanctions. Today it is 10 thousand barrels per day. This was announced on Thursday, July 7, by Yury Trutnev, Deputy Prime Minister and Plenipotentiary Representative of the President of the Russian Federation in the Far Eastern Federal District, reports Interfax.
According to Trutnev, the sharp decline in oil production has affected the economy not only of the Sakhalin region, but also the entire Far East and Russia as a whole.
“It will not be received (in the budget of the Sakhalin region – ed.) In 2023 up to 38 billion rubles. This is 26% of the level of the region’s own income in 2022,” said Trutnev.
According to him, due to downtime, not only budget losses occur, but also deterioration in the properties of deposits. This will greatly affect the reduction of the oil recovery factor.
“This means that a large amount of oil will remain in the reservoirs,” explained the plenipotentiary of the President of the Russian Federation in the Far Eastern Federal District.
Trutnev also commented on the departure of foreign partners in Sakhalin projects. He mentioned that maintaining the PSA (production sharing agreement) regime is very important for the budget of the Sakhalin Region.
It was previously reported that the United States wanted to halve the price of Russia’s oil. If an agreement is reached, Russia will have to sell its oil at $ 40-60 per barrel.
Earlier, US President Joe Biden promised a “big problem” for oil from Russia. The US and its allies will not provide insurance to Russian tankers carrying oil. This will interfere with the transportation of this energy source.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.