PRESS: Russia may freeze new shelf devt licenses for 1–2 years

MOSCOW, Aug 31 (PRIME) -- Russia’s Natural Resources and Environment Ministry has applied to the government with a proposal to freeze providing licenses for shelf development for one to two years, Minister Sergei Donskoi said in an interview with business daily Vedomosti published on Wednesday.

“We came forward with an initiative to the government to freeze issuance of licenses. But with a proviso: if state companies have common interests in some block, it will be put up for auction,” he said.

“I think for the next one to two years at least,” Donskoi said.

At present, the government can provide licenses for shelf development only to two companies – oil major Rosneft and gas giant Gazprom.

The main volume of production at Arctic shelf deposits is expected after 2030, Donskoi also said.

“We can’t say that we will launch all projects by 2029, it is clear that there will be delays, some difficulties. But initially, when we planned shelf development in 2012, we assumed that the main production volume will be after 2030. These plans have not been revised so far. Operations on the shelf are difficult and require large investments. We consider the shelf as a reserve, which we will develop,” the minister said.

At present, “production at the Arctic shelf is only on one project – the Prirazlomnoye field,” he said.

He also said that Gazprom continued to successfully operate at the Yuzhno-Kirinskoye field on Sakhalin Island, which was hurt by Western sanctions. The launch of the field is scheduled for early 2022 and no changes to the license have been introduced.

Speaking about non-shelf projects, Donskoi said the ministry plans to announce an auction for the Nazymsky and Ai-Yaunsky fields in the Khanty-Mansi Autonomous District in 2016.

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