Primakov says there is no reason for Russia to be in a hurry when it comes to developing oil projects in the Arctic, as the country has several other fields that can be developed for less money:
“Most [other] fields are already secured an acceptable return at a price of $60 dollars, and LUKOIL has said that production in Western Siberia is profitable even at $25,”he said according to RIA Novosti. However, when it comes to more ‘problematic’ oil, the situation is different, Primakov says:
“Arctic offshore oil production is only profitable at an oil price of 100-120 dollars per barrel. Is it really worth boosting oil production on the shelf under conditions such as now?”
“Despite the importance of the region to Russia, why should we not take a pause in development of Arctic oil and gas fields? Several of our competitors have already done it: USA drilled its last well on the Arctic shelf in 2003, Canada in 2005.”
From its June 2014 peak of $US115 a barrel, the oil price has tumbled almost 60 per cent. On Tuesday it reached a minimum since March 2009 - $46.4.
Yevgeny Primakov served as Russia’s Foreign Minister from January 1996 until September 1998 and as Prime Minister from September 1998 to May 1999.