Rosneft Vows to Continue with Vostok Oil Project Despite Partner Withdrawal

Rosneft Vows to Continue with Vostok Oil Project Despite Partner Withdrawal
Photo credit: DMITRY KOSTYUKOV/AFP/Getty Images

Igor Sechin, Rosneft PJSC’s CEO, said Rosneft PJSC will proceed with its Vostok Oil project in the Arctic, just over a week after a key partner announced it would leave the venture over the invasion of Ukraine, Bloomberg reported.

As planned, the project continues to live and develop, despite inevitable difficulties, Sechin said on a panel at the St. Petersburg International Economic Forum Saturday. He added, “We’re confident they will get done.”

In response to President Vladimir Putin’s war in Ukraine, commodities trader Trafigura Group announced it intends to sell its 10% stake in Vostok Oil. The move follows similar moves by other major western energy firms including bp Plc and Shell Plc.

Production is scheduled to begin in 2024 on several fields on the Arctic Taymyr peninsula. Sechin estimates it will pump 115 million tons of oil a year by 2033, or 2.3 million barrels per day. It would be equivalent to more than 20% of Russian oil production last year.

In February, bp, the largest foreign shareholder of Rosneft, announced its intention to sell 19.75% of the company. According to Sechin, the London-based company remains a shareholder in Rosneft as well as in several joint ventures.

 

 

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