Russian Oil Companies May Cut Investment Plans by 15% Amid Low Prices

If oil prices do not grow, Russian oil corporations may reconsider their investment plans and put off several projects, Russian Energy Minister Alexander Novak said.

MOSCOW (Sputnik) — Russian oil companies may cut investment plans by 15 percent this year and postpone several projects if low oil prices persist, Russian Energy Minister Alexander Novak said Friday.

"We see today that there is a risk of some projects will be postponed to the right and volume of investments will be decreased amid low oil prices. According to our gas and oil companies' estimates, around 15 percent of the investment plans which earlier were for 2015 might be adjusted if the price stays at the low level," Novak told Rossiya 24 television channel.

Novak added that the global oil price slump will not affect Russia's current exploration of the Arctic Shelf.

Global oil prices had seen relative stability at around $110 per barrel from 2010 until June 2014. Since June 2014 oil prices have dropped significantly, currently at around $60 a barrel, due to an oversupply in the market.

Crude prices sank again in November 2014, when the Organization of the Petroleum Exporting Countries (OPEC) announced their intention to maintain output levels.