Arctic shelf development is among the major challenges facing the Russian oil and gas sector, according to President Putin, who addressed industry workers on Sunday.
"Today, oil and gas industry workers face a number of
important tasks,” Putin said in his address.
“Among them are the diversification of export flows, the
development of promising new fields, the creation of modern
clusters for processing and transportation of raw materials, the
large-scale programs of the Arctic shelf development, the
introduction of high-tech equipment and high environmental
standards."
Vladimir Putin said last week that Russia was determined to
defend its interests in the Arctic, and will do so “within
the framework of international law.”
A Soviet-era military base in the Arctic is being revived as part
of the plan.
READ MORE: Russian Navy sends flotilla to Arctic
to start permanent service at military base
Canada has been worried by Russia’s efforts in the region and the
country’s foreign minister, John Baird, told a Danish newspaper
that Ottawa was ready for a confrontation with Moscow if it expanded its
ambitions in the Arctic region.
Russia’s Foreign Minister Sergey Lavrov responded by assuring that Moscow did not
want “the Arctic to become an arena of conflict.”
Sanctions, imposed on Russia by the EU and the US at the
beginning of August, restrict the export of equipment used for
offshore oil production, including equipment needed for drilling
in the Arctic.
However, the limitations have had little effect on Russian
projects in the Arctic so far. Contracts had been signed and
drilling equipment obtained before any sanctions came into force.
US oil giant ExxonMobil confirmed a month ago it would still
continue joint exploitation of the Arctic with Russia’s biggest
oil-producer Rosneft, despite the sanctions.
READ MORE: ExxonMobil, Rosneft start joint Arctic
drilling in defiance of sanctions
That has not been the only signal of foreign businesses still
inclined to cooperate with Russia, despite political tensions.
In late August, Rosneft agreed to purchase a stake in Norway's North Atlantic Drilling
(NADL) through an asset swap.
The Norwegian company will also help Russia with drilling in the
Arctic. Under the pre-sanctions, July 2014 agreement, NADL will
provide Rosneft with six sea drilling units over a period
culminating in 2022 to conduct shelf drilling in harsh weather
conditions.