Benefits for hard-to-recover oil reserves not being considered while OPEC+ deal in effect - Russian Finance Ministry

MOSCOW. April 2 (Interfax) - Benefits for hard-to-recover oil reserves are not being considered while the OPEC+ deal is in effect, Deputy Finance Minister Alexei Sazanov told Interfax.

"As long as the OPEC+ deal is in effect, no. If the OPEC+ deal is concluded and there is a need and opportunity for additional production, then we will be ready to consider it," Sazanov said in response to a question about whether options for benefits for hard-to-recover oil reserves, which Prime Minister Mikhail Mishustin mentioned on Tuesday during a strategy session on the development of the oil and coal industries until 2050, are being studied.

Russia works closely with its colleagues in the OPEC+ alliance and responsibly approaches the maintenance of global energy security, Mishustin said. At the same time, the oil sector accounts for around 20% of the country's GDP, with annual investment exceeding 5 trillion rubles, which also contributes to the development of related sectors, he said.

Serious work lies ahead with hard-to-recover oil reserves, Mishustin said. According to the Russian government, at the beginning of 2025, the share of hard-to-recover oil reserves in production will be around 32% (of which 2% is production on the shelf). By 2050, as conventional reserves are depleted, the share of hard-to-recover reserves could increase to 70%. To make the development of such fields profitable, new technologies are applied, including hydraulic fracturing (fracking).