FSUOGM: Will Vostok Oil be able to survive under sanctions?

Vostok Oil, one of the largest greenfield oil projects in Russia, continues to push ahead, according to its state-owned operator Rosneft, in spite of sanctions imposed by the West.

Rosneft plans to drill 12,000 production wells between now and 2038 into the cluster of fields in the north of the Krasnoyarsk region that make up the Vostok Oil Project, the company’s vice president and chief geologist, Andrey Polyakov, said in a presentation earlier this month. Oil reserves are estimated at 6.5bn tonnes, or 47.6bn barrels, according to Rosneft. What is more, the oil is low-sulphur and could therefore carry a premium on international markets. At the Payakhskoye and Irkinskoye fields 14 modern Russian-made drilling rigs are set for work in the near future, manufactured specifically for the harsh conditions of the Arctic Taimyr Peninsula.

The project has more advantages: low production costs and a low carbon footprint, in part achieved by the expected complete utilisation of associated petroleum gas, according to Rosneft’s plan. The company also intends to build wind turbines to provide the project’s facilities with power, supporting the goal of having a carbon footprint three-quarters smaller than the global average for new oil projects.

If you’d like to read more about the key events shaping the former Soviet Union’s oil and gas sector then please click here for NewsBase’s FSU Oil and Gas Monitor.