On Tuesday, the Russian government stated that it had tentatively approved the plan on drilling idle oil wells in 2022 to prepare for oil production after the OPEC+ output cut deal expires.
The wells are to be drilled in 2020-2021 but will stay idle until April 2022. They will be launched during the upcoming few years, along with the expected demand growth.
The effort aims to help the oil services firms as oil producers will order services and equipment from the country’s oil servicing companies for drilling wells.
“The measure will stimulate oil companies to invest funds into further development of fields,” the statement said.
The energy ministry is working on the project completion, targeted on June 5, for further cooperation with the banking sector.
As part of the OPEC+ deal, Russia has agreed to slash its oil output by about 2.5 million bpd to 8.5 million bpd, the lowest level in more than ten years, in May and June.
