In 2009 oil production in Nenets Autonomous District will amount to 20 million tons. This is almost 30 percent more than in 2008. Poorly developed infrastructure hampers exploitation of the region’s full resource potential.
The sharp increase in oil production in Nenets AO in 2008 is connected with the start-up of production on the South Khylchuyu field, says adviser for natural resources in Nenets AO regional administration Andrey Getman according to web site Regions.ru.
According to Getman, the resource potential in the district is 30-37 million tons per year. However, the badly developed transport infrastructure in the region hampers exploitation of these resources.
There are plans for improving the situation: the Russian strategy plan for development of the railroad system suggests building of two new railrods in Nenets AO within 2030 – one from Komi to Indiga and one along the shore of the Kara Sea. There are also plans to build two new ports in the district.