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

Rosneft to invest USD 8.5 bln in offshore

MOSCOW, June 14, 2017 – Russia’s Rosneft, the world’s leading listed oil company by output, told international media on Wednesday that it was planning to invest RUB 480 billion (USD 8.47 billion) in offshore development over the next five years.

Just over half of the money, or RUB 250 billion (USD 4.41 billion) is earmarked for investments in the Arctic, which is to produce between 20% and 30% of Russia’s total output by 2050, Reuters reported.

“Development of hydrocarbon resources on the continental Arctic shelf is the future of the global oil production and one of key strategic priorities for the company,” the company told the agency in an email, noting that part of the investments would be made by unspecified partners.

It added that it had licences for 55 offshore blocks in the Arctic, the Far East and Russia’s southern regions.

Currently, the Prirazlomnoye oilfield in the Pectoral Sea, which is operated by Gazprom Neft, is Russia’s only functioning Arctic oilfield.

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