(MENAFN) Russian Gazprom said that it is about to start oil production this year at the Prirazlomnoye Arctic, a leading oil project which arises protests from environmental groups over the anger of oil spills, The Peninsula reported.
As planned, oil production is expected to commence by the end of the year, said Gazprom Neft Shelf, in their first public announcement by since activists tried to climb the production platform at Russias first Arctic offshore oil project last month.
For Russia, Arctics offshore oil and gas development is decisive as the country depends on hydrocarbon sales from the company which comprise more than half of its budget revenue.
The Ministry of Natural Recourses estimates the offshore oil recourses at 100 billion tons, which would satisfy global demands for 25 years at the current consumption levels.
State-controlled Rosneft, the leading oil producer in Russia , ExxonMobil, Eni and Statoil have agreed on tapping the Arctic deposits. But these projects will not go into production until the next decade.
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