| Study Period | 2021 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2021 - 2023 |
| CAGR | 2.50% |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Russian Federation Oil and Gas Upstream Market Analysis by Mordor Intelligence
The Russian Federation Oil and Gas Upstream Market is expected to register a CAGR of greater than 2.5% during the forecast period.
The market was negatively impacted by COVID-19. Presently the market has now reached pre-pandemic levels.
- Factors such as the reduction in the offshore drilling cost by 40% and the increasing exploration and production activities in the offshore region are expected to drive the Russian Federation oil and gas upstream market during the forecast period.
- However, the sanctions from the United States and Europe against Russia's energy sector are likely to restrain the Russia Federation Oil and Gas Upstream Market.
- The Russian government offers a trillion-ruble tax cut and various incentives for operators in the Arctic offshore, which is likely to create several opportunities for the Russian Federation oil and gas upstream market in the future.
Russian Federation Oil and Gas Upstream Market Trends and Insights
Onshore Segment Expected to Dominate the Market
- For the past several years, Russia has been the world's top three oil and gas producers. Most of the country's oil and gas are exported to other countries, making oil and gas a significant revenue generation.
- Russia, with the most abundant gas reserve in the world, comprising 19.9% of the global gas reserve, is also the second-largest gas producer, behind the United States. With countries around the globe trying to reduce carbon emissions by phasing out coal-based power plants, the natural gas demand for power generation is expected to increase.
- In 2021, the total crude oil production in Russia was 536.4 Million Tonnes (MT), which was higher than that of 2020, 524.4 MT. After Russia Ukraine war, Financial restrictions imposed by the West made it challenging to clear Russian oil transactions through Western banks. Normally, 10% of the world's oil supply comes from Russia. There is a supply deficit; it is still traded, but not to the same extent.
- In 2022, One of the world's largest integrated oil and liquefied natural gas (LNG) projects is the Sakhalin-2 project, situated on Sakhalin Island in Russia. Additionally, it is the first LNG facility and offshore gas project in Russia. The project is operated by Sakhalin Energy Investment Company (Sakhalin Energy), a joint venture between Russian state-owned companies Gazprom (50%), Shell (27.5%), Mitsui (12.5%), and Mitsubishi (10%). It consists of both offshore and onshore facilities.
- Therefore, owing to the above points, the onshore segment is likely to dominate the Russia Federation Oil and Gas Upstream Market during the forecast period.
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Increasing Offshore Activities Expected to Drive the Market
- Though the country's major share of oil and gas production comes from the onshore fields, the country, in the past years, saw a decline in production and a reduction in onshore reserves. Recently offshore oil and gas have been adding significantly to the country's hydrocarbon production due to increasing activities in the Arctic region.
- United states have banned the import of oil from Russia, along with refined petroleum products, natural gas, coal as well as technology purchases after Russia Ukraine war. The ban on technology purchases from the United States had made it hard for the country to develop complex shale and offshore projects; this has led to a shift from western technological partners to south and east for assistance and technical support. Chinese companies have been active in Russia in recent years in exploration in offshore fields, and Gazprom Neft has been actively talking with Chinese companies to develop the Chona project in Eastern Siberia.
- Furthermore, in 2021, the total gas production in Russia was 701.7 Billion Cubic Meters (cm), which was higher than in 2020, 637.3 bcm. The increasing gas production in the country is likely to positively impact the Russian Federation's oil and gas upstream market.
- Moreover, in August 2022, On the Taimyr Peninsula's Payakhskoye field, Rosneft began production drilling. By the end of 2022, the Russian energy company intends to dig roughly 80 wells there. The Vostok Oil strategic project by Rosneft includes the Payakhskoye field. Its license fund consists of 52 subsurface plots, 13 of which have been found to contain fields; four of these have already been developed utilizing cutting-edge technology.
- Hence, owing to the above points, the increasing offshore activities are expected to drive the Russian Federation oil and gas upstream market during the forecast period.
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Competitive Landscape
The Russian Federation Oil and Gas Upstream Market is fragmented. Some of the key players in this market ( not in particular order ) include Rosneft Oil Company PJSC, PJSC Gazprom, PJSC Lukoil Oil Company, Novatek PAO, and Surgutneftegas PJSC.
Russian Federation Oil and Gas Upstream Industry Leaders
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Rosneft Oil Company PJSC
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PJSC Gazprom
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PJSC Lukoil Oil Company
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Novatek PAO
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Surgutneftegas PJSC
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- November 2022: According to Japan's Chief Cabinet Secretary, the Russian government accepted Sakhalin Oil and Gas Development Co.'s involvement in the new operator of the Sakhalin 1 oil and gas project. Tokyo views this as an important development for the country's energy security.
- May 2022: The potential purchase of BP's 20% investment in Rosneft has been the subject of exploratory conversations between ONGC, Bharat Petroleum, and Oil India. ExxonMobil's 30% share in the Sakhalin-I project and Shell's 27.5% interest in the Sakhalin-II project are both up for bid, and ONGC is evaluating them both.
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Russian Federation Oil and Gas Upstream Market Report Scope
The operations phases of the oil and gas sector that entail exploration and production are referred to as upstream. Upstream, midstream, and downstream are the typical divisions of oil and gas corporations. The upstream businesses focus on the oil and gas industry's exploration and first production stages.
The Russian Federation Oil and Gas Upstream Market is segmented by location of deployment. By location of deployment, the market is segmented into onshore and offshore. The report also covers the market size and forecasts for the Russia Federation Oil and Gas Upstream Market across the major countries. The market sizing and forecasts for each segment are based on crude oil production in thousands of barrels per day and natural gas production in billion cubic feet per day.
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Key Questions Answered in the Report
What is the current Russian Federation Oil and Gas Upstream Market size?
The Russian Federation Oil and Gas Upstream Market is projected to register a CAGR of greater than 2.5% during the forecast period (2025-2030)
Who are the key players in Russian Federation Oil and Gas Upstream Market?
Rosneft Oil Company PJSC, PJSC Gazprom, PJSC Lukoil Oil Company, Novatek PAO and Surgutneftegas PJSC are the major companies operating in the Russian Federation Oil and Gas Upstream Market.
What years does this Russian Federation Oil and Gas Upstream Market cover?
The report covers the Russian Federation Oil and Gas Upstream Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the Russian Federation Oil and Gas Upstream Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Russian Federation Oil and Gas Upstream Market Report
Statistics for the 2025 Russian Federation Oil and Gas Upstream market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Russian Federation Oil and Gas Upstream analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
