Rosneft and its partners plan to invest $8.4 billion roubles in developing Russia’s offshore energy industry in the next five years to boost output from new areas, a news report said.
Most Russian oil output currently comes from western Siberia, where fields are depleting, pushing firms to look for new regions.
Of the $8.4 billion allocated for offshore projects, the Russian company plans to invest $4.3 billion in the Arctic offshore between 2017 and 2021.
In an email to Reuters, the company said: “Development of hydrocarbon resources on the continental Arctic shelf is the future of the global oil production and one of key strategic priorities for the company.”
It added that the Arctic offshore area was expected to account for between 20% and 30% of total Russian production by 2050.
The company did not name any partners who would be involved in the investments, but it has said it has licences for 55 offshore blocks in Russia’s Arctic, Far East and southern regions.
Rosneft has attempted to work with global oil players in order to develop Russia’s offshore regions – but a deal with ExxonMobil for work in the Kara Sea was suspended after sanctions were imposed in 2014.
The email added that the firm planned to return to operations in the Kara Sea in 2019.
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