Min: Margin of Arctic oil, gas production low under current prices - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

Min: Margin of Arctic oil, gas production low under current prices

MOSCOW, Oct 7 (PRIME) -- The margin of oil and gas production in the Russian part of the Arctic zone is too low under the current prices for hydrocarbons, Energy Minister Alexander Novak said on October 5 during the Russian Energy Week.

УThe margin of the Arctic projects is not sufficient as of today. We noted that and we made a corresponding report to the Russian government that we need to simulate conditions to ensure intensive development of the Arctic, we need to create a taxation system that would make profitability of Arctic projects similar to the projects in Western Siberia or in other regions,Ф he said.

Drilling in the Arctic zone is very expensive, the cost of a single well ranges from U.S. $500 million to $1 billion. And if the drilling does not bear results, the company loses the money, so it is Уa risky endeavor,Ф he said.

Oil companies Gazprom Neft and Rosneft are working in the Arctic, but not as intensively as they could. УAt the same time, we see that the current contraction of prices for hydrocarbons makes the Arctic projects economically unattractive to a large degree,Ф he said.


07.10.2019 09:07
Share |
To report an error select text and press Ctrl+Enter
Central Bank Official Rate
1W 1M 1Y
EUR 89.6637 -0.3181 26 sep
USD 76.8195 -0.3585 26 sep
Stock Market Indices
1D 1W 1M 1Y
rtsi 1187.18 -0.72 17:04 24 sep
micex 2910.99 -0.19 17:04 24 sep
Stock Quotes in RUR
1D 1W 1M 1Y
gazp 177.00 -1.12 23:49 24 sep
lkoh 4456.00 -1.61 23:49 24 sep
rosn 370.75 -1.08 23:49 24 sep
sber 228.50 -0.60 23:49 24 sep
MICEX Ruble Trading
1D 1W 1M 1Y
EURTD 89.7700 +0.5500 14:59 24 sep
USDTD 76.8125 +0.6125 17:44 24 sep