Official: Low oil prices mean Russia Arctic exploration unprofitable

MOSCOW, Feb 11 (PRIME) -- Current low oil prices make explorations of the Russian Arctic shelf unprofitable and companies must focus on the development of traditional and small deposits, VEB Deputy CEO Andrei Klepach told the State Duma, the parliament’s lower chamber, on Wednesday.

“We must seriously consider, reassess fields of oil production, as shelf deposits, because the shelf, particularly the Arctic shelf, is becoming less economically profitable with the prices we have now,” he said.

Oil production approaches must be changed and the companies must focus on the development of traditional deposits, including small ones, and to increase the rate of oil recovery, he said.

Klepach believes that oil prices will settle at U.S. $60–70 per barrel.

“They will stabilize at $47 per barrel, and nonetheless in future they will rise somewhat at $60–70 or a bit more. In the short run it looks comfortable enough for us,” he said.

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