Reforms 'could make Russia world leader'

Tough conditions: Harsh climate of Yamal peninsula illustrates need for production incentives, says TNK-BP chief

Reuters/Scanpix

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Bill Lehane

, Bill Lehane

 24 February 2012 11:04 GMT

Russia could become a global swing supplier if it reformed its practices to attract foreign investment and consign its “Wild East” reputation to history, London’s International Petroleum week has been told.

Jonathan Kollek, senior vice president of sales, trading and logistics at BP Russian joint venture TNK-BP, said all of the Russian majors were united on the need for an “inviting tax system” to stimulate investment in future production, warning the country would need to invest at least $200 billion simply to maintain current output levels.

Kollek said that many of the “low hanging fruits of the industry that were ready to be taken” had now been depleted, pointing out that Russia’s production fell by the equivalent of Sweden or Israel’s entire output…

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