Record price for Arctic oil fields
The Russian state is seeking a record price of 2 billion USD to develop the Trebs and Titov oil fields in the Nenets Autonomous Okrug. The two strategic oil fields have a total of more than 200 million tons of reserves.
The fields are classified as strategic, meaning that they have more than 70 million tons of reserves, and their sale would be the first of a strategic deposit since changes to the law on subsoil resources in 2008.
Trebs and Titov have extractable ABC1 reserves of 78.1 million tons and 132.8 million tons, respectively, The Moscow Times reports. According to analysts, these are the two of the last major undeveloped oil fields left in Russia.
Deputy Prime Minister Igor Sechin ordered the Energy Ministry in June to prepare a valuation for the fields. The calculations were prepared by three independent appraisers using different methods, with valuations ranging from 22.9 billion rubles to 101.6 billion rubles. The Energy Ministry sees 60 billion rubles (3 billion USD) as the optimal one-off payment.
The three major Russian oil companies Lukoil, Rosneft and Gazprom Neft are all expected to fight hard for the licenses. Foreign oil majors are unable to bid because Trebs and Titov are strategic fields.
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