Russia gives shelf to state companies
The two Russian state-controlled companies Gazprom and Rosneft will get monopoly rights in all hydrocarbon projects on the Russian shelf, Minister Yuri Trutnev confirms.
Meanwhile, it might be the two companies’ foreign partners, which end up with the lion’s share of the shelf investments.
Minister of Natural Resources Yuri Trutnev says in an interview with newspaper Kommersant today that Gazprom and Rosneft will share the resources of the shelf. While oil company Rosneft will get control over the Arctic oil fields, Gazprom will get the gas fields.
According to Mr. Trutnev, the amendments in a federal law on foreigners’ access to strategic Russian resources, adopted by the Federation Council yesterday, opens up for a new concept of continental shelf development. The law states that state-controlled companies will be the ones in charge of the development of the shelf.
Minister Trutnev confirms that the two state companies will share the resources between themselves without the holding of any auctions or tenders. In cases with conflicting interests, the ministry will initiate “additional consultations”.
According to figures from the Ministry of Natural Resources, there are about 450 interesting geological structures found on the Russian shelf, 100 of which have been prepared for exploration drilling. The hydrocarbon resources of the shelf are estimated to about 100 billion tons of oil equivalents, 75 percent of which is believed to be gas.
Gazprom is from before the main player on the Russian shelf. It is an open question whether Gazprom now will have to give away its oil resources to Rosneft. Among the oil licenses of the company is the license to the Prirazlomnoe field in the Pechora Sea, a field which is planned to enter production next year.
It is also a question what now will happen with the few other companies with licences to shelf reserves. Among them is the Murmansk-based Arktikshelfneftegaz, which has the licence to the Medynsko-Varandeyskoe field in the Pechora Sea.
Despite their complete control over the shelf, the two petroleum majors will still have to lean on the support from foreign partners. None of the two companies today have the technological capacities nor the necessary money for extensive engagements on the shelf. Foreign partners will be needed, and, although not getting the licenses, they might still get key roles in Russian Arctic projects.
