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The Russian oil industry: general overview

  • Russia’s oil potential is one of the largest in the world. The country’s forecasted oil resources are estimated at 62.7 billion tons, which is 13% of the total world’s resources. Exploited oil resources make up 5% of the world’s ones

  • Russia’s fuel and energy complex today numbers more than 130 thousand oil wells, hundreds of thousands km of oil and oil product pipe-lines, oil refineries and oil-mills. Share of the state in the oil extraction complex property structure accounts for about 30%. There are more than 200 oil-extracting enterprises in the complex

  • While fuel and energy complex accounts for 20% of GDP, oil industry makes up about 10%. In Russia, oil-extracting and oil-processing enterprises provide for about 1/4 of the state tax and customs revenues and more than 1/3 of export currency earnings. In terms of oil and oil product export, Russia holds the 2nd place in the world after Saudi Arabia, while in oil extraction volumes – 3rd place, yielding to only Saudi Arabia and the United States

  • 3/4 of the oil industry is formed by large vertically integrated companies (VINCs), operating by “from oil well to gas station” principle. The largest VINCs are LUKOIL (est. 1991), YUKOS, Surgutneftegas, Siberia and Far East Oil Company (SIDANKO), Slavneft’, ONAKO and Tyumen Oil Company (TNK) (all established during 1992-1996). Bashkiria and Tataria have created their own regional vertically integrated companies – Bashneft’ and Tatneft’. Tatneft’ also plays an important role on the Russian oil market