UPDATE: Min: Russia suspends new shelf development licenses

(Adds comments in last paragraph)

MOSCOW, Sep 7 (PRIME) -- The Russian government will introduce a temporary ban on providing licenses for new shelf blocks, Natural Resources and Environment Minister Sergei Donskoi said at a meeting with President Vladimir Putin on Wednesday.

“Taking into account the significant volume of works that state companies implement currently and will still have to implement -- and we know that the main participants on the shelf are state companies -- the government has decided to introduce a temporary ban on provision of new blocks on the continental shelf due to macroeconomic instability,” Donskoi said.

“This will allow companies to focus on the fulfillment of their current license obligations and distribute financial resources properly while implementing geological exploration projects.”

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

The ban will not affect those blocks for which decisions have been already made, a representative of the ministry told PRIME.

Donskoi also said that Russia expects that its bid to extend its part of the Arctic shelf sent to the U.N. will be considered by the middle of summer of 2017.

“The consideration of a bid usually takes three to five years, the Russian delegation is working on the bid to be considered by the middle of next summer,” he said.

Economic Development Minister Alexei Ulyukayev has asked Putin to spread the regime of territories of advanced development and free ports on the Arctic starting from 2017.

Donskoi has also proposed to stimulate the development of Arctic gas fields and develop liquefied natural gas (LNG) production and processing facilities in the region.

End