Sanctions force Rosneft to postpone drilling of second Kara Sea oil well

Rosneft's Universitetskaya-1 Kara Sea oil rig

Rosneft’s Universitetskaya-1 Kara Sea oil rig

Western sanctions are likely to force Russian state oil producer Rosneft to postpone drilling a second well in the Kara Sea for at least two more years, according to a report from Reuters yesterday. The delay will be a blow to President Putin who has been banking on Rosneft to lift Russia’s hydrocarbon output and to strengthen its dominance in the energy sector. Rosneft’s first exploration well in the Kara Sea – the Universitetskaya-1 – was drilled last year in partnership with Exxon Mobil, which provided the rig; now, without access to a rig from the West, Rosneft finds itself unable to carry out any further exploration work. 

Source: reuters