OREANDA-NEWS  Only 13 billion of Russia's 31 billion tons of oil reserves are profitable, most of them are hard to recover, and the total reserves at current production will last for 26 years, said Alexander Kozlov, head of the Ministry of Natural Resources of the Russian Federation.

According to Kozlov, Russia currently has 31 billion tons of oil reserves and 95 billion tons of its resources. Their difference is that resources still need to be prepared through geological exploration, both by the state and by companies, and only then transferred to reserves.

"Of the 31 billion tons of profitable reserves, 13 billion tons. With the current production (516 million tons per year - ed.), they will last for 26 years. Of these reserves, a significant part are hard–to-recover reserves, for which tax incentives were granted on time, which made it possible to make their extraction profitable," Kozlov said during government hour in the State Duma.

Oil and condensate production in Russia amounted to 516.1 million tons by the end of 2024. According to the forecast of the Ministry of Economic Development, in 2025 production will decrease by a symbolic 0.02% to 516 million tons. In 2026, it will grow to 525.2 million, in 2027 - to 532.6 million, and in 2028 - to 540 million tons.

Alexander Dyukov, the head of Gazprom Neft, has repeatedly stated that for further involvement in the development of hard-to-recover oil reserves, it is necessary to adjust the tax regime. According to him, by 2030, more than half of new oil production in Russia will be accounted for by hard-to-recover reserves. In May, Russian Deputy Prime Minister Alexander Novak, who oversees the fuel and energy sector, supported the re-tuning of the tax system to stimulate the development of hard-to-recover oil, which will make investments in reserves and technologies profitable.