Logo of Phnom Penh Post newspaper Phnom Penh Post - Russia oil giant unveils Arctic project

Russia oil giant unveils Arctic project

Content image - Phnom Penh Post
The complete project will represent a total investment of 10 trillion rubles ($132 billion),including two airports and 15 ‘industry towns’. AFP

Russia oil giant unveils Arctic project

Russian oil giant Rosneft on November 25 announced the start of operations for its giant Vostok oil project in the Arctic, part of the country’s strategic energy plan which has been criticised by environmentalists.

“It is with great pleasure that I inform you of the start of the practical implementation of the project,” Rosneft CEO Igor Sechin told President Vladimir Putin at a meeting in Moscow.

He thanked Putin, with whom he has close relations, for the adoption of a law facilitating Russian investments in the Arctic.

“The prospecting and exploration work are now underway, in accordance with our timetable,” Sechin said, adding that the design work for a 770km oil pipeline and a port had been completed.

The strategic plan for Russia’s mineral resources stretches to 2035 and is banking on growing global demand, though it does predict that natural gas will partially replace oil and coal.

It says: “Mineral resources will remain a competitive advantage of Russia’s economy, and will determine the place and role of the country in the world.”

Environmentalists urged the Russian government last year to stop granting licences to exploit several Arctic deposits.

The Vostok project, the cornerstone of Russia’s Arctic ambitions, brings together several Rosneft activities in the Russian Far North, near the northern sea route that the company intends to exploit to deliver to Europe and Asia.

In February, Sechin promised Putin that the scheme would create a “new oil and gas province” on Siberia’s Taymyr peninsula, the northernmost part of the Asian continent.

The complete project will represent a total investment of 10 trillion rubles ($132 billion), including two airports and 15 “industry towns”.

The project has also been forecast to create 130,000 jobs and allow access to estimated reserves of around five billion tonnes of oil.

The construction alone will require 400,000 workers, Sechin said.

Last week, Rosneft announced the sale of 10 per cent of the project to Singapore’s Trafigura group, without mentioning a price. The Russian group had previously said that there was interest in the project from India.

Sechin said the Arctic endeavour would eventually produce 100 million tonnes of oil per year.

Between now and 2024 he said that 30 million tonnes would be sent from the Arctic along the so-called Northern Sea route connecting the Atlantic Ocean to the Pacific.

MOST VIEWED

  • ‘Kingdom one of safest to visit in Covid-19 era’

    The Ministry of Tourism on January 12 proclaimed Cambodia as one of the safest countries to visit in light of the Kingdom having been ranked number one in the world by the Senegalese Economic Prospective Bureau for its success in handling the Covid-19 pandemic. In rankings

  • Ministry mulls ASEAN+3 travel bubble

    The Ministry of Tourism plans to launch a travel bubble allowing transit between Cambodia and 12 other regional countries in a bid to resuscitate the tourism sector amid crushing impact of the ongoing spread of Covid-19, Ministry of Tourism spokesman Top Sopheak told The Post on

  • Kingdom accepts Chinese vaccine, PM first to get jab

    Prime Minister Hun Sen said China would offer Cambodia an immediate donation of one million doses of the Covid-19 vaccine produced by the Sinopharm company. In an audio message addressing the public on the night of January 15, he said Cambodia has accepted the offer and

  • Reeling in Cambodia’s real estate sector

    A new norm sets the scene but risks continue to play out in the background A cold wind sweeps through the streets of Boeung Trabek on an early January morning as buyers and traders engage in commerce under bright blue skies. From a distance, the

  • PM asks India for vaccine help

    Prime Minister Hun Sen is seeking assistance from India for the provision of Covid-19 vaccines as the country has produced its own vaccine which is scheduled to be rolled out to more than 300 million Indians this year. The request was made during his meeting with

  • One million Chinese Covid-19 jabs to start rolling in from February

    The government has confirmed that Covid-19 vaccines from China are set to begin arriving in Cambodia by February. This came as the Ministry of Health recorded two imported cases of Covid-19 on January 18. While calling on people to remain vigilant against the pandemic, ministry spokeswoman