Rosneft and partners to invest $8.4 billion in offshore oil sector

Rosneft and partners to invest $8.4 billion in offshore oil sector

Rosneft (MCX:ROSN) and its partners are planning to invest US$8.4 billion in developing Russia’s offshore oil industry over the next five years, with a particular focus on establishing projects along the continental Arctic shelf.

Russia currently produces nearly 11 million barrels per day (bpd) of crude oil, slightly down from peaks last year as the nation agreed to OPEC driven output cuts.

Most of this crude is produced in Western Siberia, however fields are depleting across the vast region, which has pressed Russian companies into exploring new-oil abundant expanses such as the Arctic shelf.

“Development of hydrocarbon resources on the continental Arctic shelf is the future of global oil production and one of the key strategic priorities for the company,” said Rosneft in an email.

The world’s biggest listed oil company by output said it holds licences for 55 offshore blocks in Russia’s Arctic, Far East and Southern regions, which are set to be tapped.

Rosneft believes the Arctic offshore area will account for 20-30% of Russian production by 2050.

@RGNonline