Page 52: of Offshore Engineer Magazine (Jun/Jul 2015)

51 53

develop a ? eld with no less than 100 million tonnes, due to the large initial investments in infrastructure required for ? rst oil in the area. Temperatures

Arctic

Defrosting plunge to -46°C and the area is ice-bound roughly 270-300 days a year, Rosneft said.

Sanctions will not, however, prevent

Rosneft and its foreign partners mov-

Arctic development ing forward with their Arctic projects, according to recent statements of

Alexander Novak, Russia’s Minister of

Energy. “Sanctions resulted in some problems and dif? culties in attracting of foreign partners for Rosneft,” Novak said in a statement. “Nevertheless, the Russian government and companies, involved in the project, plan to continue its implementation.”

According to Novak, the partners will procure all the equipment they need for the project from other sources. This may take place as part of a program of import substitution in the Russian oil and gas industry, which was recently approved

Russian arctic oil exploration is facing an uphill by the government and involves imports battle against international sanctions and low of such equipment and technologies from oil prices. But, the country’s oil companies and government are still keen to ? nd produce their icy black gold. Eugene Gerden reports.

The West Alpha semisubmersible drilling rig, used to make the Pobeda ince sanctions were ? rst imposed exploratory wells on the Kara Sea shelf discovery in the Kara Sea. Photo by Johnny on Russia in 2014, the prospects during the next 12-20 months, with pre-

Johnsen/Flickr.

S for Arctic exploration have been paratory work starting this year. dampened. Add a sub-US$60/bbl oil Exploration drilling in the Kara Sea discovered shallow water Pobeda price, and the high cost of operating in was suspended in September 2014 due (Russian for victory) ? eld in theEast the harsh Arctic environment looks an to sanctions imposed on Russia over Prinovozemelskiy license. Pobeda, even tougher proposition. its involvement in the ongoing Ukraine estimated to contain about 130 million

Yet, despite the challenges, Rosneft crisis (OE: November 2014). In late July, tonnes of oil and 499.2 Bcm of gas, was and ExxonMobil, hope to resume the the US and the EU imposed sanctions discovered on the Kara Sea shelf just as development of Russian Arctic by the on Russian oil ? rms and limiting trade sanctions were imposed last September. middle of 2016, according to recent state- relating to the energy sector in Russia. Light oil, comparable to Siberian light ments by analysts in Rosneft’s depart- In September 2014, sanctions tightened oil, was discovered in Cenomanian Age ment of offshore exploration works. on the energy sector, with the export to and Apy-Alb Age chalk, according to

Russia is also considering opening

Russia of equipment for Arctic, deepwa- Rosneft, through the Universitskaya-1

The Prirazlomnaya platform in the Pechora Sea.

Russian offshore exploration to foreign ter and shale oil. In addition, sanctions well, drilled using Seadrill subsidiary

Photo from Gazprom. operators, both for seismic acquisition and have limited an access of leading Russian North Atlantic Drilling’s semisubmersible exploration drilling activities, which could drilling rig West Alpha. The water depth oil and gas producers to long-term funds other regions including Asia-Paci? c. mean Russian ? rms lose the exclusive grip was about 81m, about 230km off the in the US. Nevertheless, the partners plan In the case of imports of Western they have held in this area to date.

Russian coast. The well, which was cut to start preparatory work for drilling in equipment and technologies, one pos- short of its planned total duration, cost the Barents and Kara Seas, Streltsov said. sible option to resume supplies (in

Barents, Kara Seas beckon around $1 billion. “This year we will focus on the study- compliance with existing sanctions) may

According to sources close to Rosneft, ing and analysis of materials, obtained Speaking during a press conference involve the use of foreign subsidiaries the partners plan to initially focus on during surveying season on the shelf in at Rosneft’s Moscow of? ces, Timothy of EU and US oil service companies. oil production, as gas production may 2014,” Streltsov said. “At the same time Streltsov, head of Rosneft’s offshore Indeed, an of? cial spokesman of the US signi? cantly complicate transportation of next year we plan to start drilling on the exploration department, the company, Department of the Treasury, recently oil from the shelf. sites of the Barents and Kara Seas.” together with ExxonMobil and other told Russia First TV that sanctions

The partners would also only look to The drilling may focus on the recently foreign partners, hopes to resume drilling against Russia do not apply to foreign

June 2015 | OE oedigital.com 54 054_OE0615_Geo2-Arctic.indd 54 5/31/15 9:27 PM