Support The Moscow Times!

Rosneft and Gazprom Set to Carve Up Offshore

State-controlled energy giants Rosneft and Gazprom have agreed on splitting offshore deposits, limiting foreign and private access, an official said Tuesday.

The government official, who asked not to be identified, said the two firms last year signed an agreement under which Rosneft will develop oil deposits on the country's northern shelf, while Gazprom will explore gas fields.

The agreement has yet to receive government approval, the official said.

Gazprom and Rosneft declined to comment.

Russian media reported last year that the government was discussing splitting strategic shelf deposits between Rosneft and Gazprom by holding closed auctions of the fields, which could reduce cash proceeds but exclude surprise bidders.

State officials have repeatedly favored state firms for offshore fields, which are due to replace western and eastern Siberia in the second half of this century to support Russian oil and gas output growth.

According to the country's subsoil law, only companies that have a state shareholding of more than 50 percent and previous experience of working on the shelf can develop oil and gas deposits offshore, far eastern and northern seas.

Gazprom is developing the huge Shtokman gas field in the Barents Sea and controls the offshore Sakhalin-2 project.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more