Russia considers Arctic licenses for western oil majors: FT

LONDON Thu Oct 4, 2012 10:10pm EDT

Russian Energy Minister Alexander Novak answers journalists' questions during the Reuters Russia Investment Summit in Moscow September 27, 2012. REUTERS/Alexey Petrov

Russian Energy Minister Alexander Novak answers journalists' questions during the Reuters Russia Investment Summit in Moscow September 27, 2012.

Credit: Reuters/Alexey Petrov

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LONDON (Reuters) - Russia is considering allowing Western companies to own oil licenses in its Arctic waters, Energy Minister Alexander Novak was quoted as saying in Friday's Financial Times.

The FT reported, without providing a full direct quote, that Novak said the proposal would allow foreign oil majors not only to operate offshore projects but also to "have access to production" and become "co-owners of the licenses".

Novak was cited as saying the idea was being discussed in the energy ministry, although no final decision had been taken.

Only companies that were environmentally safe, technologically advanced and financially robust would qualify, the FT said.

Earlier this month, state-owned oil giant Gazprom OAO delayed the start of production at its Prirazlomnoye field, the first Russian Arctic offshore oil deposit to be developed, due to safety concerns.

The Arctic is seen as a key source of oil in the next decade for Russia, the world's largest producer.

(Reporting by Stephen Mangan; Editing by Richard Pullin)

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