Fuelled by a higher oil price with stable liquids output of above 11 million b/d, the Russian economy will grow in 2017. Russia will cut 300,000 b/d of oil production in H1 2017 as part of a deal with OPEC, but we do not expect the deal to be extended after May. This will lead to a recovery in output in H2 2017. A fundamental shift in US foreign policy could see the lifting of sanctions on Russia in 2017. However, we expect EU sanctions to remain in place. Notwithstanding this, investment in those areas impacted by sanctions - Arctic offshore, deepwater and shale oil will remain unattractive under our oil price assumption for 2017. The rise in the oil price and the lack of assets available for sale indicates the window for M&A opportunities will be closing. On the gas front, there will be two key events in 2017. The first 5.5 mmtpa train of Yamal LNG project will be completed and the construction of TurkStream’s first string will start in H2 2017.
This report includes 1 file(s)
Russian Federation upstream: 5 things to look for in 2017 PDF - 334.15 KB 4 Pages, 0 Tables, 1 Figures
This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.
This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.
Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.
Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in upstream commercial data and analysis.
Wood Mackenzie's clients include every major player in the global energy, metals and mining industries. We are recognised as a leading authority by international and national energy, metals and mining companies, leading financial institutions, governments and government agencies. We work with a range of diverse teams within our clients, from strategy and policy makers, business developers and market analysts, through to corporate finance, risk teams and investors.
Having Wood Mac analysis is table-stakes. Others are nice to have.
Analyst Metal Mining Producer
Wood Mac has the highest quality data and is demanded by our staff.
Portfolio Manager Integrated Oil Company
Others can provide data but we value the quality of the Wood Mac analysis above other sources.
As the trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, we empower clients to make better strategic decisions with objective analysis and advice. Find out more...
Insight | Jan 2017
Russian Federation upstream: 5 things to look for in 2017
Have questions? Just let us know how to contact you and we will respond to you as soon as possible.