-The unregulated questions about territorial delimitation did not give us the chance to engage in huge energy projects, Medvedev said in yesterday’s press conference with Norwegian Premier Jens Stoltenberg. –We wanted projects in the area to develop with a different level of intensity, he added, a transcript from the meeting reads.
Energy is one the key elements behind the historic Norwegian-Russian deal. Norway and Russia – two countries heavily dependent on hydrocarbon production – needed to compromise on the border delineation in order to release the major potential of the area. Experts believe the formerly disputed waters hide significant resources of both oil and gas.
In addition, in the background lures the Shtokman field, the huge Russian gas project which is to be developed together with Norway’s Statoil. Delimitation of the area will make it far easier for the project partners to develop infrastructure and bases in the area, and also to link up with new resource discoveries.
The Norwegian-Russian delimitation deal will be a basis for joint action in regional hydrocarbon development. As highlighted by both state leaders, joint ventures will have to be established in trans-border field projects. According to Premier Stoltenberg, the agreement includes a “special system” which describes in detail how the parts are to organize the situation in cases of trans-border fields.
Russian companies to team up with Statoil
This situation with joint ventures is already commented on by people with major influence in the Russian petroleum industry. Talking to journalists, Minister of Natural Resources Yuri Trutnev confirmed that Statoil will be the main foreign partner in the development of the Barents Sea. -We have decided that Statoil will be our partner, Trutnev said, news agency Finmarket reports. –What concerns other companies – that will be a subject for negotiations, he added.
According to Oilru.com, Trutnev also said that “the Barents Sea contains 25 percent of the hydrocarbon resources on Planet Earth”.
The minister also stressed the importance of technology, equipment, experience and security, “especially after what we have seen in the Gulf of Mexico”.
Oil or gas production?
Meanwhile, the quick shifts in the international energy markets might cast shadows over the hydrocarbon projects in the Barents Sea. Lower prices and harder competition in the gas market makes it less profitable for developers to engage in expensive and complex projects.
Analyst Mikhail Korchemkin from the East European Gas Analysis says to newspaper Kommersant that it will first of all be favorable for companies to develop offshore Arctic oil fields, while gas fields in the area are becoming too expensive. The now delimited area in the Barents Sea is believed to contain mostly gas.
That position, however, is not yet shared by Gazprom and its partners in the Shtokman project, which still are firmly determined to start pumping Arctic gas in year 2016.
