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Rosneft begins Arctic geological exploration ahead of schedule

Published time: August 17, 2012 10:00
Edited time: August 17, 2012 14:24
The Kremlin is reflected in the polished company plate of the state-controlled Russian oil giant Rosneft at the entrance of the headquarters in Moscow (AFP Photo / Dmitry Kostyukov)

Russia’s oil giant Rosneft has begun geological exploration in the Kara Sea one year ahead of schedule. It is part of the strategic deal with US energy major Exxon Mobil.

­The work that will run through to October 2012, and will be carried out by RN Shelf Far East, a Rosneft subsidiary, says the company’s press release.

Rosneft and ExxonMobil signed the deal to explore the shelf in Russia, the United States and other countries last August.

Both companies are to work together in tapping new deposits in the Arctic and East Siberia. Russia’s traditional Western Siberia fields bring the bulk of the country’s output, holding nearly 3/4 of Russia’s reserves.

The two companies estimate that the Kara Sea alone holds a deposit of around 85 billion barrels of oil, scattered throughout some 23 different areas.

Rosneft estimates that the total cost of the operations in Russia’s arctic shelf could reach $400 billion.

By tapping new deposits in the Arctic and East Siberia, Russia is going to sustain overall output to maintain its title as the world's top crude producer.

The Arctic potentially could be the main source of oil and gas in the future.

However its exploration is technically challenging and energy majors have been scrambling for the latest and most advanced technology to properly tap the deposits.

Apart from the Arctic shelf Exxon Mobil will join Rosneft in exploring the Tuapse field in the Black Sea. The two companies will also set up a joint center for Arctic shelf exploration in St. Petersburg.

Rosneft has also signed deals with Italy’s Eni and Norway’s Statoil to explore Russia’s Arctic shelf. It has also offered Russian companies to join in the exploration of 12 Arctic shelf fields. Surgutneftegaz rejected the offer while Lukoil and TNK-BP agreed. However TNK-BP has suspended all talks with Rosneft without giving a reason.

Comments (5)

Peter Jennings (unregistered) 18.08.2012 09:42

Are Rosneft mad? Exxon still haven't cleaned up their previous messes around the world and you are letting these misfits lose in the Artic.

Get ready for another disaster because these guys can't help themselves and are totally out of control. I hope Rosneft has a lot of money saved, they are going to need it when the time comes.

+1

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ed (unregistered) 17.08.2012 14:31

@Babs & sms. Russia is NOT anything close to a Superpower! They are a wanna-be who still copy U.S. tecnology to try and keep up, but remain firmly entrenched in their place at the technological feet of the U.S. They are what they have been even in the Soviet days - 20 years behind the West. By the time they copy our designs (F-15, F-22, Buran, IL-38, etc.) we are already far into deploying our next generation of military technology. Oh - in space? Russia could have NEVER done the Mars Curiosity Sky-Crane Rover. Like their Proton rocket, or Phobos-Grunt, they would have utterly FAILED! We take a ride on your old Souz to keep you further behind while we build new modern rockets. YES! ... We are tricking you!!!

Russia will never be a Superpower again. Russia makes nothing that the world wants, nor do they invent new technology. Who buys anything Russian? NO ONE! No Boeing, Intel, Microsoft, Ford, GE, HP, Cisco, Network Appliance, Apple, Catapillar, J&J, Pfizer, Merck, #m, Evinrude, United Technologies - NOTHING! Russia only has oil, and as I stated before, OUR OIL 200 miles off the Alaskan shore will be defended.

If Russia thinks they will bully us in the Artic like China bullies it's neighbors in the South China Sea, they are going to be in for a surprise. They will be SLAPPED DOWN quickly and hard by our superior Superpower military forces! No - Russia is at best a nuclear-armed Second-World nation. Stop deluding yourselves! Thje whole world knows the truth. You are weak, and all of Putin's antics will not change that FACT! Neither will your slow and technologically weak military build-up! If you cannot wake yourselves up from your delusions of grandure, we will do it for you with a quick military boot in your beehinds! You cannot stop the U.S. anywhere in the world, but we can defeat you ANYWHERE! Space, air, land, sea, and underwater. All of the Earth is under our military control  and protectiion - ESPECIALLY in our seas in the Artic!

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sms (unregistered) 17.08.2012 13:51

To ed. Hay stop sleeping and leaving in the 90th. Russia may be 15-20 yrs behind the US in terms of technology, but that does not mean Russia lost its superpower status. Russia is A SUPERPOWER. The rebirth of Russia is on course and they will soon be at per.

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