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Rosneft wants to postpone Arctic drilling

This terminal in Dudinka loads oil from onshore fields on the Taimyr Peninsula. Oil companies are now looking towards Russia's Arctic continental shelf for new petroleum resources.

Extreme climate, difficult ice conditions and lack of technical means to work year round forces the oil-major to ask for prolonged geological exploration period to 15 years.

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Russia’s law on mineral resources today stipulates a maximum term of 10 years for a company to hold the rights for exploration of mineral resources.

To short, argues head of Rosneft Igor Sechin in a letter to the Ministry of Natural Resources. It is the news-agency Russian Business Consulting that has got a copy of the letter where Sechin suggests amendment to the law.

Sechin writes that the “Legislation period of subsoil use for explorations offshore – 10 years – does not fully take into account the time-frame for working in this areas is limited.” Ice-covered winter periods makes drillings and seismic surveys more time-consuming than in other areas. 

The waters in question include both the Barents- and Kara Seas.

In the Barents Sea, Rosneft has teamed up with Norwegian Statoil for the northernmost areas, while Italian Eni is partner in the licenses closer to the mainland.

In early October, Rosneft announced a major oil-discovery at a well drilled in cooperation with American ExxonMobil. 

Today, all three partners to Rosneft are forced to re-think their cooperation due to the American and EU sanctions against Russia, sanctions putting a ban to cooperation on Arctic offshore drilling.

Commenting on the sanctions, Igor Sechin said according to Reuters last week, that Rosneft will continue its Arctic drilling program despite the departure of western partners.

“We will continue drilling in any case, on our own, always and everywhere. If partners can take part, that’s good. If they can’t, we will carry on alone,” Sechin said.

In his letter requesting a postponed time-frame, Igor Sechin also argues that many geological studies need to be upgraded with seismic data for further geological studies. 

Last week, BarentsObserver reported with referance to Vedomosti that the Ministry of Natural Resources confirmed the oil giant has requested new terms in a total of 60 licenses.

Speaking to Russian Business Consulting on the issue, Gazprom says Rosneft’s letter is unknown to them. Gazprom Neft holds several licenses for oil- and gas fields in the eastern part of the Barents Sea, including the Prirazlomnoye field that pumped its first oil earlier this year.