Vedomosti has published an article discussing the prospects for developing the Arctic offshore. The paper highlights that President Vladimir Putin has signed the Strategic Programme for Developing the Arctic through 2020, which assumes the complex exploration of offshore projects and the establishment of a reserve fund of oil and gas projects. However, Vedomosti points out that exploring such projects might be costly, technically difficult and uncertain. It recalls the unsuccessful experience of international oil majors and the delay in launching the Shtokman project.
We are reiterating our cautious view on the prospects for offshore oil and gas projects in Russia. We note that oil and gas resources on the offshore projects are primarily resources rather than reserves (which would be a more certain category). Furthermore, we agree with the paper that exploring such projects could be technically difficult (Russian oil companies have relatively little experience) and