Active development of offshore production in the Arctic is only a matter of time, even though these new projects seem challenging right now. The development will be intensified by decreasing the costs of the exploration and development of deposits and, potentially, by means of new government decisions aimed at stimulating the production, says Alexey Vashkevich, Director for Technology Development of Gazprom Neft, in an interview with TASS.

'The next issue is the division of proceeds between the subsoil user and the state. At the moment, the new projects seem rather challenging, given the amount of investment necessary for their implementation. But I am convinced that the reduction of costs through the introduction of new technologies and the support provided to this field by the government will eventually lead to the development of offshore production. It is only a matter of time', he says.

According to Vashkevich, production remains profitable even at current prices. 'For example, we currently have more than twenty project plans associated with the continental shelf. Most of them are aimed at reducing the costs of either the exploration or the subsequent development of deposits', he added.