Don: the oil reserves of the Russian Federation will increase, despite the reduction in funds for exploration

MOSCOW, October 23. For the first nine months 2015 increase of Russian oil will amount to 710 million tonnes, and gas at 700 billion cubic meters. These figures until the end of the year will increase, although the financing of geological exploration decreased by 10-20%, reported the President of Russia Vladimir Putin the Minister of natural resources and ecology Sergey Donskoy.

“We expect oil reserves additions in the area of 710 million tons, and gas is about 700 billion cubic meters. But it’s for nine months, because we still, of course, expect for the last three months the company will bring to the state Commission of reserves material, and, accordingly, the work on the evidence base, the statement on the balance of reserves, which this year were added,” said the Minister.

He noted that “the volumes of prospecting works at the expense of means of the Federal budget in 2015, taking into account, of course, the state budget has decreased compared with 2014, (funding) decreased by 20% and amounted to 28 billion 400 million rubles.” Donskoy added that the earlier volumes of prospecting works grew.

The Minister emphasized that with the means of subsoil users for geological exploration “the situation is different”. “Although they too fell by 10% compared to last year of 310 billion rubles, it is necessary to consider that last year the investments amounted to 350 billion rubles. This was the maximum amount of investment over 20 years, in principle, for the entire Russian period, after the Soviet Union,” said don.

According to him, also dropped “the physical volume of prospecting, exploratory drilling, seismic survey is roughly proportional to the amount of decrease of private investments, about 10%”.

“Revenues to the Federal budget from one-time payments amounted to about 37 billion rubles. That’s about 8 billion more than the planned indicators”, – said the head of the Agency, recognizing that this indicator has decreased in comparison with last year.

The don stated that “the most significant decline occurred on the shelf – the company drilled, but not in the volumes that were developed, for example, last year, a reduction of about 50%”.

“It is natural. It is a worldwide happening,” Putin said.

The Minister also told about the assessment of the situation on the reserves of natural resources. “We can say that the simple reproduction, i.e. compensation of production that will be developed this year (the Ministry of energy forecasts in the region of 530 million tons), for the extraction and liquid hydrocarbons, and gas compensation will,” he assured don.

In his words, “mostly, of course, are acreages that are developing, not on new sites”. “But this is also natural, because, of course, long-term investment now encourage companies to mitigate risks and work more on the exploration. They gain deposits at the expense of missed deposits, at the expense of stocks that are on their license areas. The work is conducted”, – assured the head of Department.

The subsoil of the Russian Federation are interested in working

The Minister of natural resources and ecology of Russia Sergey Donskoy noted the interest of small companies for geological study of new sites.

“For geological study this year will be issued 215 sites based on declarative principle, but the demand is very large, it is a small company mainly for solid minerals,” – said the head of Department to the President of Russia Vladimir Putin.

According to Donskoy, in the current economic situation “is sure to stimulate investment activity, to stimulate subsoil users for work”. He believes that one method of stimulation is the so-called declarative principle that “the subsoil user without delay obtains a license for geological exploration at the initial stage on the subsoil plot where /explored/ stock, where as such demand until it wasn’t.”

“We have simplified the procedure: if earlier during the year was preparing the list, now based on declarative principle areas of 100 square kilometers give for geological study,” said the Minister.

“This suggests that even in difficult, seemingly of the situation, and when prices are falling for most types of minerals, mining companies still willing to take risks, are willing to enter unexplored areas. And most importantly – to give them the opportunity to do it,” – said the head of the Department.

He reported to the President that this year completed deformirovanie company’s exploration – Rosgeologiya. “Fully consolidated all businesses exploration, in which government owned: seismic exploration companies, and companies for drilling. And now there is just the operating performance, improving the efficiency of this company” – listed the don.

The Minister is also satisfied that there are important regulatory documents that “fully addresses the issues of trafficking of geographic information, including the establishment of an appropriate geological information Fund”. When this decision is fully implemented, the Russian “rule on the turnover of the geo-information will be quite at the international level”, says don.

“Plus, this year changes were made to the legislation to simplify the process of drilling. In particular, we have eliminated most of the expertise for drilling wells, thereby further simplifying the procedure, sped up her in the preparation of project documents and the conduct of drilling. In our view, this is very important, especially given that companies now need to give higher limits on drilling operations,” said the head of the Ministry.

He called and one of the laws that was passed this year, to establish safeguards for licenses for the right to use /acreages/ on the Baltic sea.

“Well,” Putin said.