Russia’s state-owned oil company Rosneft is not likely to start exploration in the Artic’s Kara Sea before 2020. Sanctions

Rosneft likely to restart drilling in 2020

MOSCOW, September 15, 2015 – Russia’s state-owned oil company Rosneft is not likely to start exploration in the Artic’s Kara Sea before 2020. Sanctions imposed by the West have affected the company’s drilling campaign and its ability to acquire offshore drilling rigs, according to a presentation given by the Russian Energy Ministry.

Sanctions forced the Russian oil giant’s partner ExxonMobil to leave the West Alpha rig, which drilled the Universitetskaya-1 discovery in the Pobeda oil and gasfield.

Several other projects have been spiked in the Artic as US and European sanctions on technology and oilfield services have threatened the ability of oil and gas companies to exploit deepwater and shale plays. Rosneft terminated North Atlantic Drilling’s five-year contract for the drillship West Navigator and cancelled charters for jack-up Energy Endeavour in March of this year.

For more news and features on Russia, click here.

Read our latest insights on: