Challenges with Mega-Projects Implementation: Risk Strategies and Opportunities for Growth

Abstract

Russia always plays an important role on iternational energy markets as one of the major oil and gas producers and exporters since the country entered international enrgy market in the middle of the last century. And this role will remain stable at least till the year 2040 according to current forecasts. BP estimates, that Russia will cover around 5% of the global energy demand by the year 2040. Though, Russia has around 17,4% of world gas reserves (OPEC's estimates its even more – around 24,6% due to the different methodology) and only around 6% in world oil reserves, Russia contributes 17,3% to world gas production and 12,2% to world oil production in 2018, according to BP's Statistical Review of World Energy. Developing of enormous gas and oil reserves was extraordinary challenging for the country due to harsh climate conditions, lack of infrastructure, unsufficient financing and need to develop not only fields but the whole remote areas of the country. Though the country was widely ctitised for its dominancy on the European gas market, in this paper it will be outline that developing of the European gas market was of mutual interest of Russia and European Union and both counterpart became beneficiary of it. This paper focuses on challengies with developing enormous gas reserves as Russia has several mega giant gas fields and its experience can be usefull in developing other mega projects around the world.