Two Russian oil firms are vying for the right to head a group for development of Prirazlomnoye oil field north of the Arctic Circle in the Pechora Sea, a southeast arm of the Barents Sea.
Moscow's business weekly Commersant says tenders for development of Prirazlomnoye will be called "shortly."
Competitors for the group leader role are Arktikmorneftegazrazved (Arctic Offshore Oil and Gas Exploration) Corp. and Rosshelf (Russian Co. for Shelf Development). The two enterprises also are competing for leading roles in development of supergiant Shtokmanovskoye gas field in the Barents Sea (OGJ, Nov. 16, Newsletter).
Prirazlomnoye is a relatively small oil field. But, Commersant reported, "the scuffle for rights to its development may set a precedent when far more lucrative chunks of offshore arctic natural resources are put up for tenders.
"These include not only Shtokmanovskoye but (giant or supergiant) Rusanovskoye and Leningradskoye gas fields in the Kara Sea, west of western Siberia's Yamal Peninsula."
Arktikmorneftegazrazved is a state owned corporation established in 1979. It reportedly has participated in discovery of 10 oil and gas fields in the Barents and Kara seas.
The Rosshelf joint stock company was set up in 1992 by 19 Russian enterprises of the military/industrial complex. It has no experience in oil and gas exploration or development.
FIELD TENDER
Arktikmorneftegazrazved officials have drawn up documents for a Prirazlomnoye field tender and submitted them to Russia's Committee for Geology and Natural Resources and Ministry of Fuel and Power, Commersant reported. Moscow was expected to make a decision on Prirazlomnoye field development soon.
However, the matter must be cleared with the Ministry of Defense because Russia has strategic interests in the Arctic.
Yevgeny Reshetnyak, director general of Arktikmorneftegazrazved, recently discussed with defense ministry officials the terms under which foreign companies can be allowed to develop oil fields in the Arctic-Prirazlomnoye in particular.
Commersant said in practice Arktikmorneftegazrazved, as the company that explored Prirazlomnoye, has the right to be the leading Russian participant in the group that develops the field. Rosshelf is contesting that right.
Arktikmorneftegazrazved reportedly is not against Rosshelf's participation in the project. But it wants Rosshelf's role to be limited to equipment supply.
Prirazlomnoye oil field and Severo-Gulyaevskoye gas/condensate field, just to the west, are in ice free shallow water only about 31-37 miles offshore. They are in subsea extensions of the big onshore Timan-Pechora basin.
The Pechora Sea fields could be developed much sooner than remote Shtokmanovskoye in the Barents Sea and the two big Kara Sea gas fields. Reports of hugh Pechora Sea hydrocarbon discoveries have been denied by Russian geologists.
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