Report claims Gazprom’s Arctic drilling running losses of $579m

Report claims Gazprom’s Arctic drilling running losses of $579m

Oslo: Wildlife activist WWF says Russia’s only offshore oil-producing field in the Arctic, Prirazlomnaya, operated by Gazprom, is unprofitable despite heavy state support.

According to the Barents Observer, the Arctic pioneering project is running a close to $600m deficit, partly because of the record low oil price.

The project is the first oil extraction on the Arctic shelf using a stationary platform.

According to a report made by the Norwegian consultant group Sigra Group for WWF, Gazprom’s development platform is running with a $579m deficit, despite state support.

A similar calculation was done in June 2014. Back then the project was also in the red despite an oil price of $100 per barrel.

Production in the Pechora Sea started at the end of 2013 and the field reserves are estimated to be about 72m tons of oil. Peak production estimates of 5m tons is scheduled for 2020.

In 2013 the platform received attention when close to 30 activists from Greenpeace were arrested and jailed  in Murmansk for  protesting against Arctic drilling.

 

Hans Thaulow

Hans Henrik Thaulow is an Oslo-based journalist who has been covering the shipping industry for the last 15 years. As well as some work for the Informa Group, Hans was the China correspondent for TradeWinds. He also contributes to Maritime CEO magazine. Hans’ shipping background extends to working as a shipbroker trainee with Simpson, Spence & Young in Hong Kong.

Related Posts