Energy Minister: Russian Arctic drilling facing delays

Russia will have to wait some more to see its Arctic drilling operations kick off again.

According to Reuters, which quoted Russia’s energy minister Alexander Novak, Arctic offshore drilling originally planned for 2015, will be delayed for next year or event later.

To remind, Rosneft, the Russian oil giant, last year struck oil in the Kara Sea, in the Russian Arctic in what has been described as the world’s northernmost offshore exploration well.

However, the company was forced to put its operations in the region to a halt after its partner Exxon Mobil pulled out due to Western sanctions imposed on Russia for its involvement in the Ukraine crisis.

While never explicitly saying it will not be drilling in the Arctic this year, there were hints of such an outcome, after Karmorneftegaz cancelled several offshore support vessels’ contracts.

Karmoreneftegaz is a joint venture between Rosneft and Exxon Mobil, formed to run the oil firms’ Russian Arctic operations.

Igor Sechin, Rosneft CEO, in June this year said Rosneft would invest around $400 billion in its Arctic offshore program over 20 years.

Offshore Energy Today Staff