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Rosneft suspends license for Black Sea offshore zone for 5 years

Rosneft also confirmed that the company will start drilling an appraisal well in cooperation with Italian Eni in near future

MOSCOW, October 27. /TASS/. Russia’s Federal Subsurface Management Agency (Rosnedra) satisfied the application of Rosneft to suspend the exploration and production license for the Yuzhno-Chernomorsky license area situated in the eastern part of the Black Sea, the Russian oil producer told TASS on Friday.

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"According to assessments of specialists, the project is economically unfeasible at present in the environment of adverse macroeconomic situation and sanctions. Furthermore, the oilfield services market does not have drilling vessels and drilling equipment corresponding to requirements brought by the company for implementation of the project of well construction on the Yuzhno-Chernomorsky license area," a representative of Rosneft said.

Rosneft will monitor the market and keep an eye on changes in macroeconomic parameters, and will initiate early reinstatement of subsoil use rights for the Yuzhno-Chernomorsky license area in case the price situation improves, he said.

Rosneft also confirmed that the company does not change plans of operations on the Zapadno-Chernomorsky license area in the Black Sea and will start drilling an appraisal well in cooperation with Italian Eni in near future.

The license for the Yuzhno-Chernomorsky offshore area was suspended for the term of five years, a source in the Russian Ministry of Natural Resources confirmed to TASS. The ministerial press service confirmed the license suspension fact but made no comment on it.

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