Gazprom loads first oil from Russian Arctic shelf

April 22, 2014

On April 18, Gazprom loaded the first cargo of oil produced from the Prirazlomnoye field – the only Russian project for hydrocarbons development in the Arctic shelf, Gazprom’s press office said. Taking part in the event were Alexey Miller, Chairman of the Gazprom Management Committee, heads of the Company's specialized structural units and subsidiaries as well as contracting companies.

The first oil cargo totaled 70 thousand tons. It will be delivered to consumers in Northwestern Europe by the oil vessels Mikhail Ulyanov and Kirill Lavrov purposely built on Gazprom's request for shipping oil from the Prirazlomnoye field. All in all, it is planned to ship over 300 thousand tons of oil from the field this year.

It is the first time that ARCO (Arctic Oil), the new type of Arctic oil produced from the Russian shelf entered the global market. It was purchased by one of the top European energy companies; the feedstock was sold under the direct contract. The new ARCO oil was traded among oil refining companies of Northwestern Europe in the first quarter of 2014. Once the production volume of the Prirazlomnoye field is increased, a part of feedstock will be sold under long-term contracts.

Source: Gazprom Press Office, 2014