Petroleum Development in Russian Barents sea: Driving Forces and Constraints

The potential of the Barents Sea for petroleum production has attracted interest for many years. In the Russian sector of this ocean, enormous gas finds and substantial oil resources have now been proven, and the first real licensing for field development in the area has just begun. Despite the area's potential, there are strong conflicts of interest. The report examines the forces alternatively driving and hindering offshore hydrocarbon development in the Russian sector of the Barents Sea. It describes exploration activities beginning during the Soviet period and extending to the present. The status of the major development projects financed in part with foreign capital, and conflicting regional and central government interests involved in such development, is described and evaluated. Coverage includes a discussion of the various regional interests in petroleum activities, with a particular focus on the conversion of naval yards in the area and the emergence of Rosshelf, an oil/gas conglomerate formed to facilitate such conversion. It also reviews the planned licensing rounds and the results of the first round. Finally, it discusses supplies from the Barents Sea in the context of overall Russian energy supply and energy development strategies. (author)