Rosneft suspends Black Sea licence over US sanctions
Russian oil company Rosneft has reportedly suspended its licence for oil and gas exploration in the Yuzhno-Chernomorsky block in the eastern part of the Black Sea due to US sanctions imposed on the Russian oil and gas industry in 2014.
According to report by the Russian news agency, TASS on the 27th October, the oil company suspended the licence for five years because the project is economically unfeasible in the current environment of adverse macroeconomic situation and sanctions.
Another factor which contributed to such decision was the unavailability of drilling vessels and equipment that match Rosneft’s requirements for the implementation of the well construction in the licence area, a representative for Rosneft told TASS.
However, the company plans to monitor the situation for changes in the market and will reinstate the rights in case the situation improves, the news agency further said.
TASS also added that the situation with the Yuzhno-Chernomorsky licence did not affect Rosneft’s Zapadno-Chernomorsky licence area in the Black Sea where the company plans to drill an appraisal well in the near future in cooperation with the Italian oil company, Eni.