NORDSCI Conference proceedings 2018, Book 2

Economics and Tourism

ECONOMIC FACTORS OF PROSPECTING AND EXPLORATION DEVELOPMENT ON THE RUSSIAN ARCTIC SHELF

Assoc. Prof. Dr. Elena Katysheva

ABSTRACT

The oil and gas of the Russian Arctic shelf is one of the most important sources
of the country's hydrocarbon raw materials. However, despite the sharp activation
of geological exploration in Russia in 2012 - 2014, the geological study of the
Arctic shelf remains extremely low. At present, the absolute majority of license
areas of the shelf are distributed between PJSC Gazprom and PJSC Rosneft. The
article notes that the lack of access to the shelf for other Russian and foreign
companies can significantly slow down the process of its geological study. Also,
as a shortcoming of the offshore licensing strategy adopted in Russia, the focus is
on local licensing areas and the absence of the possibility of studying regional
patterns. In the context of economic sanctions, an important problem is the almost
absolute dependence of the geological exploration process on the shelf on
imported equipment and technologies. It was noted that the existing fleet of
domestic offshore drilling rigs is not able to fulfill the license obligations of
Gazprom and Rosneft. In this regard, it was noted that the most important
condition for successful offshore exploration is the availability of a production
base and domestic technologies for offshore exploratory drilling. It is established
that with the current trends in hydrocarbon sales markets, the cost-effective
development of shelf deposits is problematic. It is concluded that the program for
studying and developing the shelf should be adjusted in favor of financing the
most promising projects in coastal and transit areas near production areas with
developed infrastructure. The main points of the strategy for the development of
the Arctic shelf zone in addition to the development of hydrocarbon reserves are
highlighted: the development of alternative energy, the revival of the reliable
hydrometeorological services, the increase in cargo transportation along the
Northern Sea Route, and the exploration and development of ore deposits in the
region.

KEYWORDS

Arctic shelf, geological exploration, seismic exploration,
licensing, profitability.

REFERENCE

NORDSCI Conference Proceedings 2018, Conference Proceedings, ISSN 2603-4107, ISBN 978-619-7495-01-0, ECONOMIC FACTORS OF PROSPECTING AND EXPLORATION DEVELOPMENT ON THE RUSSIAN ARCTIC SHELF, 171-178 pp, DOI paper 10.32008/nordsci2018/B2/V1/27