In times of sanctions, Prirazlomnaya goes Russian

The Prirazlomnoye project, Russia's first offshore oil project in the Arctic, is heavily dependent on foreign technology.

Production proceeds as planned, but parts of equipment and services will be replaced by Russian suppliers, a top leader of operator company Gazprom Neft says about Russia’s first offshore oil project.


None of the foreign contractor companies have so far pulled out of the project, Gazprom Neft Deputy Director Vadim Yakovlev says to newspaper Vedomosti. He admits however, that his company is looking at ways to replace foreign companies with Russian suppliers.

Up to 50 percent of services at the unique project platform are managed by foreign companies. Norwegian companies alone account for at least 25 percent of the equipment and technology applied at the installation. With the new sanctions in place, the Prirazlomnaya is in an increasingly vulnerable situation with potential lack of foreign equipement and services supply. That could ultimately jeopardize security at the platform.

“We are looking at ways to get equipment from other producers, among them Russians”, Yakovlev says. He stresses however that the foreign equipment installed is all in good shape and working condition.

According to the Gazprom Neft representative, the Prirazlomnoye project will produce 300,000 tons of oil this year and “no less in 2015”. In 2018, the production volume will reach at least four million tons and then reach peak production of up to 5,5 million per year in 2021.

The platform has already produced more than one million barrels, Yavkovlev says. The first tanker loaded oil from the platform in April this year and a second is current on the site getting ready to pick up more oil.

Production at the Prirazlomnoye project was launched in late December 2013.