Russia: Interest in Northern Seas Offshore Licenses Increases

Several Russian oil companies have applied for drilling licenses in the Barents-, Kara- and Pechora Seas.

There are currently no operational offshore oil- and gas fields in the Russian Arctic Oceans, but the interest to start exploring the northern offshore fields appear to increase. Less ice due to the on-going rapid climate changes makes it more attractive for oil companies to enter the Arctic Oceans. Interfax reports that Russian oil major Rosneft has applied for three licenses within the Prinovozemelnye section of the Kara Sea, east of Novaya Zemlya. The Kara Sea is normally ice-covered or has drift ice eight months a year.

Rosneft has also applied for the licenses to the Admiraletsky and Pakhtusovsky fields in the Russian part of the Barents Sea. One month ago, Russia and Norway reached an agreement on the maritime delimitation in the Barents Sea, ending an almost 40 year long dispute between the two Arctic nations. The huge maritime area in question is believed to hold large amounts of natural gas and potentially also oil. With reference to an anonymous source within Russia’s Natural Resources Ministry, Interfax says Rosneft has also expressed an interest in the Yuzhno-Russky field in the Peachora Sea, east of the Barents Sea.

The same Interfax source also indicate that other state owned companies had applied to offshore licenses, but without specifying who and where.

Russia’s agency for issuing offshore petroleum licenses, Rosnedra, has started to prepare the licenses, but nothing is said about when applications will get approval or denial.

[mappress]

Source: Barentsobserver, May 28, 2010;