The Next ‘Saudi Arabia of Asia’: Russia’s Petroleum Power

Russia has one of the largest reserves of natural resources and is one of the biggest exporters of natural gas in the world.  Russia being the world’s largest oil producer surpasses even Saudi Arabia in oil production. With oil and gas production contributing to almost 60 percent to the economy, Russia is now seeking offshore investments in order to expand oil and gas exploration, production and development.

Russia has shown greatest interest in Arctic oil exploration. Russian firms and investors are seeking partnerships with foreign investors.  Among the recent partnerships, the deal between Russian firm, Roseneft and British oil giant, BP for Arctic oil exploration may not have not see the light of day. But Roseneft is looking to partner with new western companies for Arctic oil exploration. 

Oil companies and investors like BP, Chevron, Exxon Mobil, Shell and George Haligua Cohen Eastern, are displaying interest in Arctic exploration. Potential companies like GHC Eastern have entered into contracts with the Russian government amounting to $70 million, for Arctic exploration and drilling rights.

Partnerships between the Russian government and offshore investors bring in expertise and investment in development costs for oil exploration and development. This will definitely strengthen the ‘petroleum power’ Russia possesses.