The oil branch of Russian energy giant Gazprom will start producing from its newest Arctic field in the next few weeks, a news report said, casting doubt of efforts to agree a global output freeze.
GazpromNeft said 600,000tonnes of oil would be pumped out of Messoyakha this year, rising to 5.5million by 2020, Reuters reported.
The firm, whose production costs are thought to be just $3.5 a barrel, is developing the field alongside Russian counterpart Rosneft.
Vadim Yakovlev, first deputy chief executive at GazpromNeft, said was quoted as saying by Reuters: “We became the world champions in Arctic production. Our projects – Prirazlomnoye, Novy Port, Messoyakha – are the only ones on the pedestal. We will start shipments in the near future, there are weeks left.”
Mr Yakovlev was also cited as saying that lowering production would not be “economically viable” for GazpromNeft.
“We are producing at a profit,” he said, Reuters reported. “There are a lot of reserves (globally) which could be put into exploration additionally and produce oil even at current oil prices.”