The Russian Private Sector Partnership (which is overwhelmingly controlled by the Russian state) with the Russian Public Sector enables it to proceed rapidly in the implementation of giant energy projects in the territory of the Russian Arctic cycle.
More specifically, on 25 November 2020 the CEO of PJSC Rosneft Oil Company, Mr. Igor Sechin and Russian President Vladimir Putin have agreed on the full extraction of oil and gas deposits located in a vast area of Russia’s territory in the Arctic Circle in the northern region of Krasnoyarsk Krai.
Photo by the website https://en.wikipedia.org
The sites to be investigated for the existence of multiple sources of Rosneft oil are at least a hundred and fifty in number, with Rosneft pledging to deliver up to thirty million tons of oil to the North Arctic Sea Routes by 2024. At the same time, the Russian State will build a port in Sever Bay and a 770km pipeline.
The extraction, production, storage and distribution of oil from this particular region will include fifty million tons of oil per year with the aim of increasing to one hundred million tons per year when the project called Vostok Oil is completed.
The Vostok Oil project will require 2500 units of various machinery, special equipment, and cranes. This amount of machinery can reach the number 6500 units. In addition, fifty new helicopters and one hundred domestically built drilling plants will be acquired.
The project’s human resources requirements are enormous as it will take 450000 people to develop the Vostok oil fields, including 130000 staff and contractors of PJRC Rosneft Oil Company.
Fifteen new cities of 30000 inhabitants will need to be built in the interesting area each to accommodate workers staying there in shifts.
In total, fifty ships of various types, such as tankers, LNG and refueling vessels will be served, respectively.
At its maximum productivity, this project will cause an increase in domestic demand in Russian industry equivalent to about 1.6% of Russian GDP per year.
The fact that the EU has decided to switch to the development and production of green energy for the EU’s transition to the green economy does not mean that it will cause a drop in demand for exported Russian gas to it because demand for oil and gas will continue to increase due to the ever-increasing energy needs of Asian economies with prominent economies of China and India.
