Commodities

Rosneft, Russia’s largest oil producer have found its first oilfield in the Eastern Arctic

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Sunday, Rosneft—Russia’s largest oil producers have claimed that it had found its first oilfield which is located in the Laptev Sea in the eastern Arctic. Rosneft, along with its partners are planning to invest 480 billion rubles—or $8.4billion in developing Russia’s offshore energy industry in the next five years, part of a drive to boost output from new areas.

The company has pursued agreements with several global oil players to develop Russia’s offshore regions. However, in 2014, along with the United States company: Exxon, a deal to work in the Kara Sea in the western Arctic was suspended; this was after the imposition of Western sanctions against Moscow.

Most Russian crude output comes from western Siberia, where most of the fields are depleting, making producers look for new regions. The Western sanctions adds complication to the process, barring Western companies from helping with Arctic offshore and shale oil plans. In accordance to this, Rosneft also claimed that the result of the drilling at the Khatanga license block allows Rosneft to be considered the first explorer and discoverer of oil fields in offshore Eastern Arctic.

The arctic offshore area is expected to justify for between 20% and 30% of Russian production, which is considered one of the world’s largest, by 2050. In addition, Rosneft owns 28 blocks in the Arctic offshore area with the combined estimated resources of 34 billion tons of oil equivalent.

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