Russian mining giant Rosneft is working on a giant oil project that is expected to overshadow North Sea drilling capacity with supplies and significantly affect the situation in Europe’s black gold market.
Vostok. That’s what the name is a giant oil field in the north of Russia, which is expected to start delivering oil to the Russian and possibly European market within three years. By the end of this decade, its capacity is set to rise to two million barrels per day, which can already significantly affect the situation in the black gold market in Europe. The North Sea rigs, which also supply Europe with oil, have similar capacity.
In 2024, Vostok’s capacity is projected to reach around 600 thousand barrels per day, accounting for about 15 percent of current Russian mining. Expected revenue from oil sales could help fund an ambitious plan of around $400 billion through which current President Vladimir Putin wants to make Russia one of of the strongest economies of the world.
But from Russia’s point of view, the bet on oil may not come out because the European Union, which is a major customer of Russian oil, will gradually move away from fossil energy sources. By 2040, for example, the EU wants to stop relying on natural gas altogether. Oil can thus await a similar fate.