The oil demand and offer balance will recover in 12-18 months, Russian Energy Minister Alexander Novak said in a radio interview, adding that Russian companies will continue investing in the sector as their production cost was one of the lowest in the world.
“We believe the demand and offer balance will be restored in twelve – eighteen months at most,” the minister said, adding that the Russian oil sector saw increased investments in rouble terms towards the end of 2015.
Production drilling rose around 8 percent and exploration drilling grew by 5-6 percent approximately at the end of the first quarter of 2016, he said, according to Tass news agency.
“Our companies believe the market will recover shortly and continue investing into their sector,” the minister said, pointing out that low cost of production will allow Russian oil companies to survive almost with any oil price on the market.
“The production cost we have is one of the lowest – in different fields it ranges from 2 to 15 dollars. So we are competitive here. In fact any price is not critical for the industry,” he said.