Bloomberg quoted Bank of America Corp said Russian offshore oil and natural gas reserves could more than double in the next 15 years should the country follow Brazil example in attracting foreign investment and expertise.

The bank said Russia could add 6 billion barrels of proved and probable reserves as well as gain additional revenue and a higher valuation for its oil and gas companies.

Ms Karen Kostanian head of Emerging Europe, Middle East and Africa Oil and Gas Research at the bank’s Merrill Lynch unit said “We see inaction as the largest risk to developing offshore reserves in Russia. We do not believe that status quo on taxation or one-off tax breaks are enough to attract adequate investment to the industry.”

Russia, the world biggest oil producer and second-biggest gas producer, restricts development of fields in its waters to state companies. The country is considering adjusting the laws to allow more companies into offshore exploration and form ventures for field developments. OAO Rosneft, Russia biggest oil producer last year agreed with Exxon Mobil Corp to develop fields in the Kara Sea.

(Sourced from Bloomberg)