Arctic Oil, Gas Discovery a Massive Boost to Russia's Reserves

Russian energy giant Rosneft has announced the discovery of a “unique” gas deposit in the Kara Sea containing an estimated 514 billion cubic meters of natural gas. The company says the discovery could establish a new cluster for oil and gas production in the area.

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Rosneft is playing a key role in Russia's Arctic strategy, which aims to capitalize on warming temperatures to transport the remote region's huge oil and gas resources. Development plans are continuing despite concerns over the climate impact, high costs and sanctions on some oil production in the region.

The field, named after Soviet Marshal Konstantin Rokossovsky, is Rosneft’s third discovery in the Arctic. It is part of the company’s drilling campaign to develop the region’s oil and gas potential.

The second discovered field, with an estimated 800 billion cubic meters of gas deposits, was named after Marshal Georgui Zhukov. Overall, more than 30 “prospective structures” were identified in the three areas of the Kara Sea, according to Rosneft.

The project was started by President Vladimir Putin in 2014. It has resulted in the discovery of one of the world’s largest oil and gas fields, the Pobeda field. Its total manageable reserves stand at some 130 million tons of oil and 422 billion cubic meters of gas.

The announcement confirmed “the discovery of a new Kara offshore oil province,” as a result of the drilling, adding that “in terms of resources, it could surpass such oil and gas-bearing provinces as the Gulf of Mexico, the Brazilian shelf, the Arctic shelf of Alaska and Canada, and the major provinces of the Middle East.”