A Review of the Nigerian Energy Industry

Rosneft eying new projects

Rosneft office07 July 2014, News Wiires – Russian state oil producer Rosneft will shift its focus to new projects from acquisitions, at a time when the Russian economy is grappling with US and European sanctions, according to the company’s chief financial officer.

“We are number one by size, number one by growth, number one by reserve base, number one by efficiency: we don’t have to buy more”, the Financial times quoted Svyatoslav Slavinsky as saying.

The company was looking at developing new oil resources, from east Siberia to the Arctic Sea, and intended to start drilling along with US major ExxonMobil this summer as it looked to shore up its plans of posting a 30% jump in production by 2020, the paper quoted the chief financial officer as saying.

The drilling by the two companies in the Arctic Kara Sea had been scheduled to begin in mid-August, but it could be moved forward depending on the weather, Rosneft chief executive Igor Sechin told Reuters last month.

Slavinsky told the FT that Rosneft was aiming to double its total oil and gas output to 10 million barrels of oil equivalent per day in the next 20 years.

Slavinsky’s optimistic comments come at a time when Russia has been hit by sanctions from the United States and European Union imposed over Ukraine, that have prompted investors to pull out of a country where leaders have used the punitive measures to call for a more self-sufficient course for the economy.

Rosneft had seen “no impact whatsoever” from western sanctions, Slavinsky told the FT, adding that a safety net of cash on its balance sheet, which stood at $20 billion as of 31 March, would allow it to overcome any volatility in the financial markets due to the sanctions.

The company could not be reached for a comment outside of regular business hours.


– Upstream

In this article

Join the Conversation