Zarubezhneft takes over Arctic oil field

Zarubezhneft is taking over Arctic oil production at the Kolguyev island. Photo:

With its acquisition of the Arktikmorneftegazrazvedka, state-owned Zarubezhneft becomes owner of Russia’s only oil producing field in the Barents Sea, the Peschanoozerskoye field on the island of Kolguyev.


Drilling and exploration company Arktikmorneftegazrazvedka started production at the Peschanoozerskoye field already in 1987 and has since drilled 49 wells on the island. Now, the company and all its assets are being incorporated in the bigger Zarubezhneft, the state-owned company which increasingly looks towards Arctic resources.

In connection with a visit to the remote island last week, Zarubezhneft General Director Nikolai Brunich confirmed his company’s interest in continuing production at the field, information from the Nenets AO regional administration reads.

In addition to the Arktikmorneftegazrazvedka, also the company Arktikneft operates on the island. Together, the two companies produce an annual of about 100.000 ton of oil, all which all is shipped and exported by 30.000 ton tankers in summer and fall. As previously reported, the oil is reloaded to the tankers with a special pipeline stretching 5000 meters from the coast out at sea

The oil from the Peschanoozerskoye oil field is light and sulfur-free and is in high demand both at the domestic and foreign market.

About 550 people today live at the island, of which about 250 are shift-working oilmen and the rest indigenous Nentsy, Wikipedia informs.