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Activities of Major Oil and Gas Companies in the Arctic Region

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Activities of Major Oil and Gas Companies in the Arctic Region

Release date: 30 September 2020

Topics:

The Arctic

Oil and Gas

Exploration and mining

Power generation

Specific character of the Arctic region entails that small and medium enterprises and local administrations do not possess sufficient finances and competence in management of high-profile projects to attract large-scale investments in the region. This is especially true for highly capital-intensive and complex projects related to hydrocarbon production. Therefore, major producers serve as drivers of the most significant changes in the region.

The Roscongress Foundation presents the salient points of the publication accompanied by fragments of broadcasts of relevant panel discussions from the business programme of international events held by the Roscongress Foundation.

Major Russian companies are occupied in hydrocarbon production and exploration of new fields in the Arctic. Similar projects are essential for the region development as they attract larce-scale investments and serve as a driver to the most significant changes int he region.

The study contains historical background and main projects of the following companies: Gazprom PJSC, Gaprom Neft PJSC, Rosneft Oil Company PJSC, Novatek PJSC, Lukoil PJSC.

According to the study data, Gazprom PJSC holds 30 licences for fields located at the Russian Arctic shelf.

Gaprom Neft PJSC holds 27% of arctic fields in terms of production. he company implements 3 high-profile projects in terms of Arctic Time program: exploitation of Novoportovsky, Prirazlomny and Eastern-Messoyakhsky fields.

Rosneft Oil Company PJSC possesses 28 licensed areas at the Arctic shelf with total resources of 34.6 bln tons of crude oil equivalent: Western Arctic (Barents Sea, Pechora Sea and Kara Sea) — 19 projects; Eastern Arctic (Laptev Sea, East Siberian Sea and Chukchee Sea) — 9 projects.

Novatek PJSC is one of the major independent natural gas producers in Russia, and is the third-largest player in terms of proved gas resources among public companies worldwide. The authors note that Novatek has supplied LNG over the Northern Sea Route through the Far East in July 2018 for the first time: tankers were following the eastern route in the direction of the Bering Strait without any icebreaker assistance.

For several years Lukoil PJSC was pursuing to obtain the right to explore and produce hydrocarbons in the Arctic region. The issue was recurrently discussed in the Government, but no license was granted. Private Russian oil and gas companies may take part only in state corporation projects. Despite no license so far, the company preserves its interest in the Arctic region and catties out the following activities: development of onshore territory of Eastern-Taymyr field and Varandey Oil Export Terminal.

Video: https://roscongress.org/sessions/iaf-2019-kak-rossiya-budet-podderzhivat-chastnye-investitsii-v-arktike-novyy-podkhod/search/#00:09:53.752

Interest of Non-Arctic states to participate in implementation of projects in the region is constantly growing. The most promising projects include projects with participation of Chinese oil companies as the PRC is the world largest and constantly growing consumer and importer of gas. A major player in the Arctic region is also a French company Total S.A.

PRC is the world largest and constantly growing LNG consumer. The study includes records of two Chinese oil companies cooperating with several Arctic states in several Arctic projects: China National Petroleum Corporation (CNPC) and China National Offshore Oil Corporation (CNOOC).

Total S.A.— a French energy group of companies, one of the leaders in energy industry. The company is occupied in geological exploration, production, processing and distribution of hydrocarbons, as well as in petrochemical and energy industry. It ranks fourth among international oil and gas companies and is present more than in 130 countries worldwide. The company id the second-largest player in LNG sector.

Video:https://roscongress.org/sessions/iaf-2019-arktika-arena-protivostoyaniya-ili-sotrudnichestva/search/#00:31:42.152

For more information about construction as a sector with a sizeable share in many economies, rising level of digitalization, and shifts in consumer sentiment in real estate, please see the Oil and Gas, Exploration and mining, Power generation

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