Prime cost of a barrel of oil in Russia is $25


February 22, Fineko/ The cost of oil production in Russia, including transportation, is now $25 a barrel.

The statement was made by Deputy Energy Minister of Russia Pavel Sorokin.

"Russia has an advantage - low prime cost. On average, operating costs in Russia are $3-10 a barrel, capital costs make $5-10 and transport $5. As a result, prime cost makes $25 a barrel. With the devaluation of the ruble, the prime cost also reduces," Sorokin said.

He added that it allows Russia to compete effectively in the world market and not to be afraid of losing its share in it.

On Thursday evening, the price of Brent crude oil futures for delivery in April 2019 on the ICE exchange in London exceeded $67 a barrel for the first time since 19 November last year.

He pointed out that the high demand for oil will keep, including due to the growth of production in the petrochemical segment.

"Now it takes a very small percentage of the volume of oil refining - about 13-14%, although this percentage will grow to almost 18-20% over the next 15-20 years," Sorokin added.