Source Pravda.Ru

Russian oil companies are 68-85% cheaper than foreign companies

In terms of price and reserves experts believe Russian oil companies to be 68-85% cheaper than other transnational enterprises. This was announced today in an analytical review by the investment company Troika Dialog, which was published by the Agency for Conflict Situations today.

Firstly, this company's experts say 'it is impossible to compare the reserves of Russian companies with those of foreign companies without amending the figures. BP had to halve the reserves of TNK and Sibneft had to decrease its own reserves in order that this figure might be brought in line with the demands of the US securities commission and the US stock exchanges.'

Secondly, Russian companies have reserves for up to 23 years whereas international companies only have about 13 years' worth of reserves. Yet a barrel of oil extracted in 2025 is cheaper than a barrel extracted in 2010. Thirdly, Russian companies make comparatively less profit than foreign companies as they are obliged to sell part of their product at low rates on the domestic market.

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