Huge oil deposit in Russian Arctic could open new opportunities for India

INTERNATIONAL DESK: Russian energy major Rosneft has announced the discovery of a huge oil deposit in the Pechora Sea containing an estimated 82 million tons of oil. This could open up opportunities for India which has investments in Russian oil assets in Far East & has emerged as a key importer of Russian oil.

The field was discovered due to a drilling campaign in the Medynsko-Varandeysky area. “During the tests, a free flow of oil was obtained with a maximum flow rate of 220 cubic meters a day,” the company’s statement read on Wednesday, noting that the “oil is light, low-sulfur, low viscosity.”

Rosneft noted that the exploration works in the waters of the Pechora Sea proved the “significant oil potential of the Timan-Pechora province on the shelf and became the basis for continuing the study and development of the region.”

The company reportedly controls a total of 28 offshore licenses in the Arctic, eight of them in the Pechora Sea.

India is keen on utilizing the commercial benefits of a shorter maritime route via the Northern Sea Route and feed its economy with the Arctic oil and gas as it seeks to diversify its supply routes. India’s Arctic engagement is also motivated by its desire to secure Russian commitment lto transport Arctic resources to India by INSTC. INSTC itself matters a great deal to India because it provides an alternative to China’s BRI. India’s involvement in the Arctic is also closely linked to its concerns with regard to China’s enhanced Arctic presence.

In May Rosneft sold 700,000 tonnes of Urals oil loading from Baltic ports of Primorsk and Ust-Luga in May to Indian Oil Corporation NSE -1.36 %. (The Economic Times)