The Russia & Caspian region has seen some of the largest cuts in US$ upstream costs since the oil price fall. 2017 lifting costs have reduced by 22% compared to our Q4 2014 outlook. Regional currency depreciation drove savings in 2014-16. But, from 2017, exchange rate stabilisation means not all savings will stick. Key investment projects remain resilient, headlined by the largest FID of recent years – US$37 billion Tengiz expansion. What comes next? A further 10 major FIDs are expected by end-2020, but optimisation and cost control will be critical.