Federation Council allows the development of Arctic oil deposits

The Federation Council, the Russian parliament's upper chamber, has adopted new laws allowing for the development of Arctic oil deposits, in particular major fields in the Nenets Autonomous Area, Siberia. The new oil producing area is situated in a region where there is little or no industrial or social infrastructure. The priority plans include the construction of a transportation system.
The chamber heard that the development of the Northern Territories in the Nenets Autonomous Area along the lines of production-sharing will attract over $ 3 bn in investments, including $ 465 mm to build pipelines. As much as 77 % of resultant revenues will stay in Russia, half of it in the Autonomous Area. The state is counting on revenues approaching $ 2.5 bn. The project will also create some 2,000 new jobs and provide orders to many Russian enterprises, the chamber noted.
Another deposit to be developed along production-sharing lines is located in the Khanty-Mansi Autonomous Area, namely the Priobskoye field in the Northern licensed segment. Its development is expected to attract investments in excess of $ 23 bn.