Energy pipes

The government of Russia has finalized a state program for oil and gas exploration. The project is worth around 225-250 billion USD, the government putting in around 40 billion USD.

The program is scheduled to run to 2030 and aims to provide an "energetically safe development of the national economy" through production of 40-80 million tons of oil and 190-210 billion cubic meters of gas per year.

That counts for 8-16% of the current level of oil production and 32-35% of gas production in Russia, according to the Barents Observer.

The state program is yet to be recognized by the president of Russia but a decision is to be made in November.

Interest in exploration in the Russian waters is huge but according to the ministry, development of most projects is "economically inefficient" under the current legislation.

The main causes that are hampering development are lack of funding for exploration, poor infrastructure development and presence of administrative barriers.

The new state program is set to change that.

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