Russian Government Has No Plans to Admit Private Oil Companies to Shelf So Far

June 5, 2013

The Russian government has no current plans to return to the issue of admitting private oil companies to developing domestic shelf deposits, Natural Resources and Environment Minister Sergei Donskoi said Tuesday, Prime reports.

“With private companies the issue remains at the same stage that it was in before. So far, and most likely, we will not return to this topic in the next several months. We are not discussing this issue,” Donskoi told reporters.

The major shelf deposits have already been allocated to state-run Gazprom and Rosneft, he said.

The natural resources ministry is preparing the state program of shelf development and is elaborating an option for providing access to shelf deposits of other state-run companies, primarily Zarubezhneft, Donskoi said.

The government has been considering the liberalization of shelf development for several years. At present, only companies in which the government owns at least 50% and which have at least five-years of experience on the shelf are entitled to develop Russian shelf fields.

Only Rosneft and Gazprom meet these requirements.

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