Page 8 - FSUOGM Week 37 2021

FSUOGM POLICY FSUOGM

Private Russian firm requests

offshore Arctic access

RUSSIA RUSSIA’S Natural Resources Ministry has asked application from Lukoil, Russia’s largest private
the government to grant a private company oil producer, for rights to the Nadezhda block
Yamal Shelf was access to areas of the Russian Arctic shelf, where in the Baltic Sea, where the company is already
founded by former state-owned Rosneft and Gazprom have a near developing several oilfields.
Russian energy minister monopoly over oil and gas exploration. Yamal Shelf’s requests are significant, as
Igor Yusufov. Russian independents have repeatedly lob- under Russian law, only Rosneft and Gazprom
bied for exploration rights in the offshore Rus- can apply for licences on the Russian Arctic
sian Arctic. But Moscow has declined their shelf. This said, the state-owned companies
requests, believing the region’s substantial oil and can form joint ventures with private partners
gas reserves should remain in state hands given to develop projects in the area. Gazprom Neft
their strategic importance. However, some in notably formed a partnership with Novatek,
government have grown frustrated with Rosneft the country’s top privately owned gas pro-
and Gazprom’s slow pace of activity in the area, ducer, to develop a block in the Chukchi Sea
and view private investment as a solution for in June, giving the latter its first access to the
spurring development. shelf.
The Natural Resources Ministry has received Both Yamal Shelf and Lukoil asked for per-
interest from the Yamal Shelf Company, founded mits under the so-called “declarative” principle
by former Russian energy minister Igor Yusufov, introduced to Russian subsoil law in 2019. This
in unexplored waters of the Kara and Baltic seas, allows companies to access areas where explora-
the Moscow-based Tass news agency reported tion is high-risk without having to go through
on September 14. Specifically, the company a subsoil auction or having to make a payment
applied for access to the Baidaratsky, Ust-Ob- to the state. In the event that they confirm
sky-2, Ust-Obsky-3 and Ust-Obsky-4 blocks. resources, they are eligible to receive an explora-
The ministry also said it had received an tion and production licence. ™

P8 www. NEWSBASE .com Week 37 15•September•2021