According to the energy tycoon of Russia, Rosneft (MCX:ROSN), they have discovered oil along with their project partner from America, the Exxon Mobile Corporation (NYSE:XOM). This oil reserve was discovered in a well in the Arctic; and the interesting part is that this well is considered to be controversial.
After a drilling process that was completed in an impressive period of time, the other process cannot proceed as long as the well is further developed; and until then nothing further can be done. According to Exxon Mobile Corporation (NYSE:XOM), they are going to “wind down” the entire project as they have to follow the sanctions by the US that they have placed against Russia – after what Russia did to Ukraine.
The drilling in the pristine areas for oil has faced some serious objection from various environmentalists.
According to a statement released by the company itself, they have been quiet successful in the drilling process in the extreme northwestern part of the world. The head of the company Rosneff, Mr. Igor Sechin, who had to suffer the effects of these sanctions himself, said that the well is providing them with an amazing quality of light oil.
According to his estimates, the well is expected to produce a huge amount of oil that equals about 100 million tons. Along with that, they might get some gas, potentially about 338 billion cubic meters.
He further stated that it was an amazing result from the first time ever drilling process in a totally new field that is off shore. He also said that he shares the credit of this victory with his partners too – who helped him with the whole process. The list of these partners included the Exxon Mobile Corporation (NYSE:XOM), FMC, Trendsetter, Baker, Halliburton, Schlumberger, Weatherford and the Nord Atlantic Drilling.
The experts in this subject are of the view that prior to any accurate idea of the reserves in that region can be formed, it is important that some more testing should be carried out.
According to the company, they were still not sure about the advancements in the project owing to the sanctions by the US, which do not allow the companies from US to take part in any kind of joint endeavor with any of Russian energy companies.
Rosneft (MCX:ROSN) is actually an oil company based in Russia and is majorly owned by the government of Russia. It was founded in 1993 and has its headquarters in Moscow. It is run under the leadership of Igor Sechin, the CEO of the company, and Alexander Nekipelov – who is the chairman. The main products of the company include the natural gas, petroleum, motor fuel and the petrochemicals. They create as much as US dollar 102.0 billion (according to calculations in 2012) in revenue, and their new income is about 11.1 billion US dollars (in 2012). About 70 percent of the company is owned by the government of Russia and the rest is owned by BP. The company has about 106,000 people as its employees that make sure that the company is up and running at all times.