Proposals from Far East Development Ministry for meeting on supporting HRR development in Novy Urengoi focused on developing FEFD, Arctic infrastructure
MOSCOW. Aug 25 (Interfax) - The Far East and Arctic Development Ministry will propose measures at a meeting in September on stimulating the development of hard-to-recover reserves (HRR) that involve supporting infrastructure development, State Secretary and Deputy Minister Anton Basansky said.
"The Far East and Arctic Development Ministry is preparing new proposals for hydrocarbon production in the Arctic and the Far East. We must not forget that these regions are the treasure trove of our country's subsoil, and at the same time a source of significant interest for big business and new investment. We must approach the issue of efficient use of these resources wisely and comprehensively. But first and foremost, to attract business to new large projects, we need to help create infrastructure - transportation, logistics and urban [infrastructure]. This is exactly what our main proposals and initiatives are focused on," Basansky told journalists on the sidelines of an event dedicated to the international Vladivostok regatta.
As reported, an industry meeting on support measures for the development of hard-to-recover oil and gas reserves will be held in Novy Urengoi in early September.
The discussion about the need to stimulate the development of HRR has intensified with the approval of the Energy Strategy until 2050. According to the document, without support measures, liquid hydrocarbon production in Russia could fall to 360 million tonnes by 2050 in a business as usual scenario. The base scenario assumes growth to 540 million tonnes.
The oil industry has developed an understanding that to maintain production at the current level, companies need state support measures for HRR. The Finance Ministry insists that the industry is sufficiently supported regarding difficult reserves, and the introduction of new benefits in the current conditions, amid sanctions restrictions on oil sales and the OPEC+ deal in effect, is inappropriate.
