Russia: 30% of Crude Oil Exports to be Asia-Bound by 2020

by Ship & Bunker News Team
Thursday September 10, 2015

Alexander Novak, Russia's energy minister Friday said that he expects 30 percent of the country's crude oil exports to be sent to Asia as early as 2020 as the country actively works on diversifying its growing exports away from the west, Platts reports.

Speaking at the Eastern Economic Forum in Vladivostok, Novak stated that crude production in Russia's East Siberia and Far East regions expected to grow from 58 million metric tonnes (mt) last year to 118 million mt in 2035.

"Even at present, nearly all increases in liquids production in Russia is secured by fields in East Siberia and the Far East," said Novak.

Crude production in the region is expected to grow rapidly over the next few years, with expected increases of 19 percent by 2020, up 11 percent from current levels, explained Novak, noting that gas production in the area is also expected grow to around 15 percent of the national output after 2020.

The expected growth in East Siberia and Russian Far East production is reported to coincide with predicted growth in Asian energy demand, with Russia aiming to have 36 to 39 percent of its total energy resources being sent to the Asia-Pacific region by the year 2035.

In 2014, 526.75 million mt of Russian crude was produced, a 0.70 percent increase from the previous year, with Novak estimating that overall Russian production will be maintained at 525 million mt per year though to 2020.

Exports, however, are said to be growing this year due to tax changes that have "significantly weakened" refining margins and making exportation more lucrative.

On Tuesday, Ship & Bunker reported that China is expected to offer its own oil futures contract as early as next month, signaling a bid to wrest control of oil prices away from current benchmark Brent.