Category Archives: Region
An administrative area, division, or district.
NEW YORK – Russian energy Czar Igor Sechin said Wednesday that U.S.-Russia economic relations still don’t reflect their full potential, but that opportunities to tap Russia’s massive oil reserves will provide opportunities for that to change.
At an event in New York describing details of Exxon Mobil Corp.‘s deal with OAO Rosneft, Sechin, who is Russia’s Deputy Prime Minister, said that “the time has come in Russia-U.S. relations for a step-up in the level of practical and real projects.”
The partnership between Exxon and Rosneft could give the companies access to about 90 billion barrels of oil equivalent in estimated resources from the Arctic Ocean and the Black Sea, Rosneft said Wednesday.
In a video presented to analysts in New York, Rosneft said that the partnership would drill its first wells at the Kara Sea in the Arctic Ocean as early as 2014-2015, with a final investment decision on full-scale development expected by 2016-2017. Sechin said that Kara Sea production is estimated to begin around 2027.
The Exxon-Rosneft deal comes in the wake of the Russian government’s efforts to step up the development of new oil production regions, especially in the Arctic. Sechin said that about 5% of oil output to come from new regions by 2020, and up to 40% by 2030.
“We recognize that the implementation of such projects will require strong and consistent support of the state,” which aims to ensure transparent terms of access to the new fields, Sechin said.
Sechin said that under new rules, tax rates were defined for different types of operational conditions. Exxon-Rosneft projects in the Kara Sea will have a royalty of 5%. Royalty levels for deepwater projects in the Black Sea will be 10%, Sechin said.
Long-term investment in offshore development is estimated to exceed $500 billion, Sechin added, creating more than 300,000 jobs.
Overall, the large scale investments needed to tap Russia’s massive oil and gas wealth provides an “enormous potential for U.S.-Russia cooperation, which ought to help us to overcome our over-politicized relationship,” he said.
Such large projects “will be welcomed and will find strong support of the Russian government,” Sechin said.
Copyright (c) 2012 Dow Jones & Company, Inc.
- Rosneft-Exxon deal: the gains and challenges (rt.com)
- Exxon Mobil To Grow Deal With Rosneft – Reuters (247wallst.com)
The Bureau of Ocean Energy Management (BOEM) announced yesterday that it was seeking public input on issues that should be tackled by the bureau in preparing an Environmental Assessment for proposed seismic data acquisition activity in Arctic areas of the Alaska Outer Continental Shelf (OCS).
ION Geophysical Corporation has applied to conduct an exploratory 2D marine seismic survey during the fall of 2012. The application proposes conducting operations throughout much of the Beaufort Sea Planning Area, with specific transect lines and segments within the Chukchi Sea Planning Area. Data obtained during this survey would be used by geologists and geophysicists to view and interpret large-scale subsurface geologic structural features and evaluate prospects for oil and gas reserves.
The Bureau of Ocean Energy Management (BOEM), an agency under the United States Department of the Interior that manages the exploration and development of the nation’s offshore resources, has also on its website announced ION’s permit application #12-01 and the associated area coverage map. BOEM has also explained the the procedures required for submission of comments, setting the deadline for April 30, 2012. More information can be found at BOEM’s official website.
Below you can see ION’s recent video: Case Study in Challenging
Environments: The Arctic Environment
Top of the world tactics at ION. See the ION approach in action as Joe Gagliardi, Director Arctic Technology & Solutions, tackles the punishing Arctic environment. By combining the capabilities across the company, ION delivers the answers and the technology that allows operators to acquire data further north than ever before and dramatically extends the short working season.
The American Bureau of Shipping (ABS) has announced it will class the first-of-its-kind Arctic Containment System (ACS), which will serve all exploration activities in the Chukchi and Beaufort seas offshore Alaska. The ACS will be deployed in June 2012.
ABS explains that a modular oil containment system will be installed on the deck of the non self-propelled ice-strengthened barge following its conversion to a floating offshore installation The dedicated barge will remain unmanned and on standby until deployed. Then, assisted by a tugboat, its trained crew will be able to respond to an oil spill incident in the exploration areas in a matter of days.
Shell has plans to drill up to six exploration wells off the coast of Alaska, later this year and has contracted with Superior Energy, the operator of the ACS, for the containment system to be available during the summer drilling season. The containment system would be able to mitigate spillage in the time it takes to drill an intervention well.
The oil giant’s Arctic drilling plans have been facing strong opposition from environmental activists. Today, twenty Greenpeace activists boarded two icebreakers leased by Shell from Finland’s Arctia Offshore. Shell has leased the vessels to support its upcoming drilling operations offshore Alaska.
- USA: Shell’s Chukchi Sea Oil Spill Response Plan Approved (mb50.wordpress.com)
- BP, Shell to partake in arctic drilling inquiry, Telegraph says (mb50.wordpress.com)