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Rosneft ships first crude from Vostok Oil project in Siberia

The Vostok Oil project, Russia’s largest new development, is set to produce 50 million to 100 million tons of crude annually at peak capacity.

Reported · Written up by our desk · Energy

Rosneft has shipped the first crude oil cargo from its Vostok Oil project in Eastern Siberia, despite sanctions aimed at Russia’s energy sector and the departure of Western business partners, Oilprice reports.

The project is expected to ramp up to peak output of between 50 million and 100 million tons of crude per year. Rosneft says the development covers multiple fields in Krasnoyarsk Krai, with some already producing and others based on new discoveries, and it includes 2,000 drilled wells.

According to Oilprice, Rosneft’s chief executive Igor Sechin said the fields have combined reserves of about 7 billion tons of low-sulfur crude. The project had an estimated 2019 price tag of the ruble equivalent of $157 billion.

Oilprice also notes that lifetime operating costs were estimated at $170 billion in 2021, and that the project previously included Western partners such as Trafigura and Vitol. Sechin, in remarks from a 2019 keynote, warned that low investment in oil and gas could lead to an acute supply deficit.

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