Russia to build up half-finished oil wells to regain market share

Russia believes it is extremely important to quickly regain, or even raise, its oil market share once demand recovers, as it readies to build up its fleet of unfinished oil wells, Energy Minister Alexander Novak said.

“Once (oil) demand starts returning to the pre-crisis levels, it will be extremely important for Russia and for other oil producing countries to quickly regain market share, or even to raise it,” Novak said in a ministry’s in-house magazine.

Novak said the government considered offering three-year tax breaks for companies engaged in the programme from early 2022, estimating the number of the unfinished wells at 2,700.

Total spending by oil companies themselves is seen at 300-400 billion roubles, Novak said. To provide some respite for the industry, he suggested companies should engage in “green” energy production until oil demands recovers.