Taxing times for the oil sector

摘要

Russia’s government and oil sector face a challenging time as prices for the country’s crude fall to 12-year lows of below $26/bl. State-controlled oil firm Gazpromneft says existing production will remain profitable at oil prices of $15/bl, while it will still be able to increase output and drill new wells at $20/bl. Other firms have yet to comment on the latest price drop. Private-sector firm Lukoil, Gazpromneft and state-controlled Rosneft reiterated plans at the end of last year to finance priority projects in full in 2016, while Rosneft even considered a capital expenditure increase.