Russian oil company Rosneft has reportedly suspended its license for oil and gas exploration in the Yuzhno-Chernomorsky block in the eastern part of the Black Sea due to U.S. sanctions imposed on the Russian oil and gas industry in 2014.
According to a Friday report by the Russian news agency, TASS, the oil company suspended the license for five years because the projects is economically unfeasible in the current environment of adverse macroeconomic situation and sanctions.
Another factor that contributed to such decision was the unavailability of drilling vessels and equipment that match Rosneft’s requirements for the implementation of the well construction in the license area, a representative for Rosneft told TASS.
However, the company plans to monitor the situation for changes in the market and will reinstate the rights in case the situation improves, the news agency further said.
TASS also added that the situation with the Yuzhno-Chernomorsky license did not affect Rosneft’s Zapadno-Chernomorsky license area in the Black Sea where the company plans to drill an appraisal well in the near future in cooperation with the Italian oil company, Eni.
Offshore Energy Today Staff