In 2023, drilling of Russian oil wells could break post-Soviet records, according to industry data seen by Bloomberg, suggesting that Western sanctions have not had much impact on the rate of drilling, especially in brownfields.
Russia is expected to drill wells to a total depth of 28,100 kilometers (17,460 miles) between January and November 2023, according to data seen by Bloomberg, which would break the post-Soviet drilling record for the second year in a row.
Analysts say the record-high drilling rate shows that Russian producers are trying to maximize production from older fields to prevent productivity declines. Despite the withdrawal of major international oilfield service providers, drilling rates remain high as these providers give their Russian operations** to local management teams with drilling and management experience.
Ronald Smith, an oil and gas analyst at Moscow-based BCS Global Markets, told Bloomberg: "Russia is much more independent in oilfield services than is widely believed. ”
Halliburton announced last year that it would hand over its Russian operations to a Russian management team made up of former Halliburton employees. Baker Hughes signed an agreement last August to give its oilfield services business in Russia to a local management team. Baker Hughes and Halliburton's new business in Russia operates independently of its former parent company.
Data seen by Bloomberg in July showed that Russian oil producers accelerated drilling of production wells in the first half of 2023 despite Western sanctions. The total length of production wells drilled by Russian E&P companies in the first half of 2023 exceeded the same period in 2022 and also exceeded drilling targets, the data showed. From January to June, the total length of new rigs increased by 86%, 6 more than planned drilling activity6%。(Compiled by Xiao Chen).
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