U.S. sanctions have created serious problems for Russian oil businesses in the Arctic: Reuters
Russia’s Arctic oil sector has faced serious difficulties due to US sanctions on tankers and oil storage facilities. About this informs Reuters agency.
The disruptions affected the logistics of three brands of Russian Arctic oil — “Novy Port”, “ARCO” and “Varandey”. Their total production reaches about 300 thousand barrels per day.
The vessels and infrastructure required to transport these types of oil are unique. In particular, “Novy Port” oil from Gazprom Neft’s Novoportivsk field, where the temperature can drop to -55 °C, “ARCO” from the Pryrazlomnaya offshore platform and “Varandey” from Lukoil’s Tymano-Pechora fields are delivered by specialized icebreakers to the floating storage facilities “Umba” and “Kolskoye” near Murmansk.
The US imposed sanctions against the Umba and Kolskoye storage facilities, as well as more than 10 shuttle tankers that transport oil from the fields. At least 15 tankers sanctioned on January 10 have been involved in transporting Arctic oil over the past two months. It is impossible to replace these vessels quickly, because they were specially created for Arctic projects, noted one of the interlocutors.
Because of this, Russia risks accumulating millions of barrels of unsold oil in storage. Since all Arctic oil is destined for export, the internal pipeline system does not provide for its reception. If it is not possible to find buyers, production will have to be reduced or the oil stored in floating storages, the sources emphasized.
