Sanctions menace offshore oil security: Russia

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Russia's Prirazlomnaya platform in an August 18, 2011 file photo. Russian officials say production at the Prirazlomnaya project in the Russian Arctic is being challenged by western sanctions, which is preventing them from accessing spare parts. (Andrei Pronin/AP)
Russia’s Prirazlomnaya platform in an August 18, 2011 file photo. Russian officials say production at the Prirazlomnaya project in the Russian Arctic is being challenged by western sanctions, which is preventing them from accessing spare parts. (Andrei Pronin/AP)
Security at Russian offshore installations is at risk as oil companies are unable to get hold of needed spare parts.

The Russian Ministry of Energy is openly expressing concern about security and progress in shelf development as deficiency in spare parts and drilling rigs becomes evident.

According to the ministry, Russian companies might lack as many as 150,000 components needed for offshore platforms by year 2020, newspaperKommersant reports.

That could seriously hamper progress in field development plans, but also compromise security at existing projects.

According to the newspaper, 68 percent of the technical equipment needed by the industry is now subjected to sanctions and consequently out of reach for the Russian drillmen.

Needed equipment not produced in Russia

Russia needs 20 drilling rigs and platforms in order to be able to follow up their licenses, the energy ministry says. Companies Rosneft and Gazprom are now both applying for adjusted license terms in their offshore projects.

Russia today has offshore production off Sakhalin in the Russian far east and at the Prirazlomnoye field in the Pechora Sea. In the latter project, Russian-made equipment accounts for an estimated 10 percent of the platform construction.

When it comes to shelf exploration, Russia produces less than one percent of the equipment needed, Kommersant writes.

Related stories from around the North:

Denmark:  Faroe Islands cashing in on Russian sanctions, Barents Observer

Finland:  “Cold war looming, sanctions our best bet,” says Finland’s PM, Yle News

Norway:  Russian sanctions hit Norway hard, Barents Observer

Russia:  Statoil and Rosneft prepare for drilling despite sanctions, Barents Observer

Sweden:  Sweden’s dairy farmers hit hard by sanctions against Russia, Radio Sweden

United States:  New US sanctions against Russian oil, Barents Observer

 

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Atle Staalesen, The Independent Barents Observer

Atle Staalesen, The Independent Barents Observer

For more news from the Barents region visit The Independent Barents Observer.

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