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Page added on April 29, 2014

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Rosneft, Exxon to explore Russian arctic

Rosneft, Exxon to explore Russian arctic thumbnail

Russian oil company Rosneft said it was moving ahead with a joint effort with Exxon Mobil to explore for hydrocarbons in the arctic waters of Russia.

The board of directors said Monday they’d work to develop the Ust-Lensky reserve area in the northern Laptev Sea and the Severo-Vrangelevsky-1 in the Chukchi Sea in eastern Russia. Both sides would also explore parts of the Kara Sea under the terms of a joint venture operation, they said.

Neither side offered a reserve estimated of the targeted areas.

Changing weather patterns are leaving parts of the arctic ice-free for longer periods, giving energy companies a greater opportunity to explore frontier oil and natural gas basins.

Environmental groups like Greenpeace have expressed concern about drilling campaigns in the pristine arctic environment.

The environmental campaign group was critical during the weekend after it learned French energy company Total purchased oil from Russia’s arctic region.

Greenpeace oil campaigner Ben Ayliffe said the move only strengthens Moscow’s grip on the region’s energy sector.

UPI



2 Comments on "Rosneft, Exxon to explore Russian arctic"

  1. Plantagenet on Tue, 29th Apr 2014 10:21 pm 

    Looks like Obama’s sanctions against Russia were carefully designed not to affect the plans of US oilcos to cooperate with Russian oilcos to conduct drilling in the Arctic.

  2. Davy, Hermann, MO on Wed, 30th Apr 2014 5:14 am 

    ARTICLE SAID – Changing weather patterns are leaving parts of the arctic ice-free for longer periods, giving energy companies a greater opportunity to explore frontier oil and natural gas basins.

    Changing financial weather patterns will bring a slow down or end to the artic exploration. We have already seen the Kashagan project as an example of the challenges facing Big Oil in hostile environments. If we were in a healthy financial climate these challenges could be amortized and subsidized over time with technology and capex. We saw this with the growth of deep water drilling. It takes a certain amount of trial and error, new technologies, and human expertise buildup. The problem is capex is dropping at a time cost are going up and corresponding production is dropping. This means necessary returns of these projects will most likely not be met in a deteriorating financial markets. This with the geopolitical risks currently in play. I see head winds on all fronts except human hubris.

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