Russia's Natural Resources Ministry to include Nadezhda block in Baltic Sea in federal list for provision without auction, Lukoil permitted to update application

MOSCOW. May 25 (Interfax) - PJSC Lukoil has sent a request to the Federal Subsoil Resources Management Agency (Rosnedra) to withdraw its previously submitted application for the Nadezhda subsoil block in the Baltic Sea, the Natural Resources Ministry told Interfax.

The Natural Resources Ministry will include the block in the federal list for provision without an auction, and Lukoil will be permitted to update its previously submitted application, the ministry said.

"Operations are currently underway to include the Nadezhda subsoil block in the list of federal subsoil blocks located within the inland sea waters and territorial seas of Russia, and are provided for use without an auction," a ministry representative said.

This specifically entails a mechanism for filing applications for hydrocarbon blocks located within territorial seas during the summer and winter windows. The Rules for the provision of these blocks were amended in March 2023, and the company can now apply for an already formed block included in the list and posted on the official websites of the Natural Resources Ministry and Rosnedra, respectively. Companies previously submitted applications where they independently indicated the boundaries of the blocks.

The Russian government approves the list of these blocks.