Rosneft announces launch of Arctic Vostok Oil project
In Russia, an aggressor state, the company Rosneft announced the launch of the Arctic oil project Vostok Oil. As OilPrice reports, a pipeline was opened as part of the project between the Vankor and Payakha fields and the Bukhta Sever port on the Kara Sea. The first oil was also loaded onto the Arc7 ice-class Arctic tanker Valentin Pikul.
Production and infrastructure
Vostok Oil combines the Vankor cluster, the West Irkinsky block, the Payakha group of fields, and the East Taimyr cluster. According to an estimate cited by OilPrice, proven liquid hydrocarbon reserves in these assets amount to at least 6 billion tonnes, or about 51 billion barrels.
The design capacity of the new pipeline is 100 million tonnes of oil per year. Rosneft chief Igor Sechin said that bringing Vostok Oil into operation should make it possible to supply 30 million tonnes of oil in the second half of 2027 and up to 50 million tonnes in 2030.
According to Rosneft, the Bukhta Sever port has an oil berth, two cargo berths, a berth for the port fleet, and 14 oil storage tanks with a stated capacity of 30,000 tonnes.
More current news is available on the UA.News Telegram channel Telegram.
Route to Asian markets
Rosneft views the Northern Sea Route as a route for supplying Arctic oil to Asian markets, primarily to China. OilPrice also notes that in February 2022, Rosneft signed a 10-year, $80 billion agreement with China National Petroleum Corporation to supply 100 million tonnes of oil.
According to the outlet, sanctions imposed after Russia's full-scale invasion of Ukraine complicated Arctic energy projects due to the loss of Western technologies and investment. In particular, Shell withdrew in early 2022 from joint ventures with Gazprom and Gazprom Neft, including its 50% stake in Gydan Energy.
The total cost of Vostok Oil was previously estimated at 10 trillion rubles, approximately $135 billion at the exchange rate at the time. The project also envisaged the construction of two airports and 15 industrial settlements on the Taimyr Peninsula.
