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Russian oil production too costly

Credit: Igor Zarembo | RIAN

Russian oil industry was found one of the most cost-intensive in the world, according to findings by Saudi Aramco. The oil company claims that Kuwait and Saudi Arabia have the lowest cost of oil production.

Producing one barrel of oil in Russia costs $42 for onshore and $44 for offshore drilling, which is only less expensive than the oil production in Kazakhstan, the United States, Angola and Azerbaijan. Arab countries boast the most cost-efficient oil. One barrel in Saudi Arabia and Kuwait cost only $17. Other cheap countries include Nigeria, Venezuela, Iraq and Iran.

Saudi Aramco analysts say they assessed the break-even price of oil in commercially viable projects, RIA Novosti reports. Otherwise there is no point in continuing the project.

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