Russia Ships First Crude From Its Giant Vostok Oil Project Through Arctic

Russia has shipped the first crude oil from its Vostok Oil project through the Arctic.

The first batch was loaded onto the high-ice-class tanker Valentin Pikul at the newly built Sever Bay terminal in Russia’s Taimyr region.

The opening ceremony at the terminal was broadcast on Russian state television.

Another Arctic-class tanker, Akademik Gubkin, was anchored near the terminal and waiting to dock, Sechin told Russian President Vladimir Putin, who watched the ceremony from his office.

The shipment starts crude exports from Vostok Oil, one of Russia’s biggest oil projects. The project is expected to increase the amount of oil moving through the Northern Sea Route as its production grows.

Russia has promoted the Northern Sea Route as a shorter shipping link between Europe and Asia. The route runs along the country’s northern coast.

Vostok Oil Targets 50 Million Tons by 2030

Sechin said Vostok Oil has a resource base of more than 7 billion tons of high-quality oil with low sulfur content.

Russian Deputy Prime Minister Alexander Novak said the oil would be shipped to buyers in the Asia-Pacific region and in the western direction.

Sechin said Vostok Oil is expected to supply 30 million metric tons of crude to the global market in the second half of next year.

By 2030, deliveries are expected to reach 50 million tons a year, he said.

That would be about 1 million barrels per day, or around 10% of Russia’s current oil production, according to Bloomberg calculations.

Sechin said the project could eventually supply up to 100 million tons of crude a year if market demand and economic conditions support it.

He said Vostok Oil could operate for hundreds of years, and potentially longer if exploration continues.

Northern Sea Route Could See More Oil Cargo

More Vostok Oil production could mean more tanker traffic on the Northern Sea Route.

The route has faced several problems, including Western sanctions against Russia, harsh weather and ice conditions, and a shortage of high-ice-class vessels.

Vostok Oil was originally being developed by Rosneft with international traders Trafigura Group, Vitol Group and Mercantile & Maritime.

The three companies sold their stakes in the project in 2022, following Russia’s invasion of Ukraine.

Rosneft had also been looking for other international partners. Two days before Russia invaded Ukraine, then-first vice president Didier Casimiro told reporters to “keep watching this space” when discussing Vostok Oil.

South Korea Tests the Arctic Route

South Korea is also testing the Northern Sea Route for commercial shipping.

The PanStar Acro is the first South Korean container ship to make a trial voyage through the route. It entered Arctic waters on Aug. 31 after leaving Busan New Port on Aug. 22.

The ship is travelling west along Russia’s northern coast. It is expected to pass through the Vilkitsky Strait around Sept. 10.

The Vilkitsky Strait lies between Russia’s Taimyr Peninsula and the Severnaya Zemlya archipelago. It is an important passage on the Northern Sea Route.

The PanStar Acro is travelling through an area close to the Taimyr region, where Vostok Oil’s new export facilities are located.

The ship is scheduled to reach Felixstowe in Britain around Sept. 14.

References: Bloomberg, ajupress