OREANDA-NEWS. Break-even of new onshore oil projects in Russia starts at a Brent price above $ 40 per barrel, which is more expensive than in the Middle East, but cheaper than in the US and CIS countries, follows from the prospectus for the world's largest production and export shares raw materials Saudi Aramco. The company’s document, which is prepared for an IPO, provides data on the average payback of mining projects using different countries as examples. The calculation is based on data for the first quarter of 2019 for new projects on land after tax with a profitability rate of 10%.

It follows from the graph that Saudi Arabia itself is the cheapest producer, where it is possible even at a price of Brent crude oil below $ 10 per barrel. In the range of up to $ 30 per barrel, greenfields in the neighboring Middle Eastern countries - Kuwait, Iraq, the United Arab Emirates and Iran - pay off.

According to consulting IHS Markit, the author of these calculations, published in the prospectus on Saturday, in Russia, the break-even of new projects on land begins at a price slightly above $ 40 per barrel. In total, the payback range in the chart varies from $ 10 to $ 70 per barrel, which puts Russian projects in the middle of the rating. Similar projects in the USA, Venezuela, Kazakhstan, Azerbaijan and a number of African countries cost more than Russian ones.