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Russian vice PM, president's envoy to request bill on offshore access to private investors

Offshore access for private investors being discussed for unallocated licenses, says source

MOSCOW, August 26. /TASS/. It will be requested to draft a bill on offshore access for private investors following the meeting headed by Russian Deputy Prime Minister Dmitry Kozak and Presidential Envoy to the Far Eastern Federal District Yury Trutnev, Spokesperson for Kozak, Ilya Dzhus told TASS.

"Following the meeting it will be requested to draft a bill on offshore access," he said.

The law says that only companies with at least 50% of state participation and with the offshore operations experience of five years and more may develop Russia’s offshore subsoil reserves. In 2016, the Russian government imposed a moratorium on new offshore oil and gas licenses for drilling on the country's Arctic shelf. Only Gazprom and Rosneft currently have operations there.

Meanwhile, the initiative to give access to Arctic shelf exploration to private investors only concerns 10% of unallocated licenses, the source that participated in discussions told reporters on Monday. "Offshore access for investors was only discussed in the context of unallocated 10% of licenses," the source said.

Trutnev earlier estimated the resources of the Arctic zone at 17 mln tonnes of liquid hydrocarbons and 85 trillion cubic meters of gas. Meanwhile, the degree of geological knowledge of the Arctic overall and offshore zones in particular remains extremely low, he emphasized. Trutnev also pointed out the relevant issue of compliance with license agreements.