Russian oil company Rosneft freezes oil production in the Black Sea due to sanctions
Russian oil and Gas Company Rosneft has suspended oil exploration and production in the southern corner of the eastern part of the Black Sea due to five-year sanctions against Russia, reports TASS.
The Russian Federal Agency for Subsoil Use (Rosnedra) granted Rosneft's petition for a suspension of its license for geological exploration, exploration and production of hydrocarbons at the South Black Sea license area located in the eastern part of the Black Sea.
“According to experts, amid the negative macroeconomic environment and sanctions restrictions, at the current moment, the project is economically inefficient,” said a Rosneft spokesman.
“In addition, there are no drilling vessels and drilling equipment in the oilfield service market that meet the requirements of the company for a project to build a well in the South Black Sea license area," Rosneft added.
A representative of the Russian state corporation has said that Rosneft will constantly monitor the market and follow changes in macroeconomic parameters and, in the event of an improved price environment, will initiate an early resumption of subsoil use rights in the South Black Sea area.
Rosneft also confirmed that the company has not changed its plans for the West Black Sea license area (Val Shatsky oil field) on the Black Sea shelf, and will soon start drilling an exploration and evaluation well in collaboration with the Italian oil company Eni.
Earlier, the head of the company, Igor Sechin, reported that Rosneft and the Italian Eni will begin drilling in the West Black Sea area in the Black Sea between late December and early January.