THE GOVERNMENT OF RUSSIA APPROVED THE DRAFT GENERAL SCHEME OF THE OIL INDUSTRY DEVELOPMENT

On May 13, 2021, the Russian Government considered and approved the draft General Scheme for developing the Russian oil industry for the period up to 2035, which had been elaborated on behalf of the Ministry of Energy of Russia under the supervision of the head scientific organization - the Institute for Energy and Finance during 2014-2021.

We congratulate the staff of the Institute and all our colleagues on the successful completion of many years of difficult work!

The General Scheme details the target vision for developing the oil industry, laid down in the Energy Strategy of the Russian Federation for the period up to 2035, approved by the order of the Government of the Russian Federation dated 09.06.2020.

The Energy Strategy of Russia also sets the key parameters and scenario conditions for developing the fuel and energy industries: a macroeconomic forecast (based on official data from the Ministry of Economic Development of the Russian Federation) and an indicative forecast of domestic and external demand for energy resources.

The General Scheme is the basis for a dialogue between the state and economic entities of the oil industry regarding medium and long-term priorities for the development of the oil industry and mechanisms for their state support.

The General Scheme is also the basis for medium and long term planning in the Russian oil industry. Measures for realization of state programs of the Russian Federation, state programs of the constituent entities of the Russian Federation, as well as planning and strategic documents of state-owned companies and joint-stock companies with state participation in terms of developing the Russian oil industry should be formed on the basis of the General Scheme.

The objects of consideration by the General Scheme are oil and products of its processing, as well as the resource base and production of associated petroleum gas.

The objectives of the General Scheme are:

• analysis of the current state of the Russian oil industry;

• identification of the main internal and external challenges facing the Russian oil industry, including opportunities and risks for its long-term development;

• development of a target vision for developing the oil industry up to 2035, adequate to new external and internal challenges;

• development of indicative forecast scenarios for oil and associated petroleum gas production, development of oil refining and demand for oil products in the domestic market, as well as building on their basis the calculated balance of liquid hydrocarbons for the period up to 2035 and an indicative forecast of developing pipeline transportation of oil and oil products;

• development of the main directions of innovative development and import substitution in the Russian oil industry;

• development of the main directions and principles of state policy in the oil industry for the period up to 2035, including measures of state regulation necessary to achieve the goals and objectives of the oil industry development;

• determination of target indicators for developing the oil industry for the period up to 2035 for subsequent monitoring of the implementation of the General Scheme.

The development of the draft General Scheme was carried out by the Institute for Energy and Finance jointly with the Company “Modeling and Monitoring of Geological Objects named after V. Dvurechensky” (in terms of oil production) and VYGON Consulting (in terms of oil refining and demand for basic oil products).