First Arctic Crude from Russia's Vostok Oil Project Shipped Out

en.Wedoany.com Reported - The first batch of Arctic crude oil from Russia's Vostok Oil project has been shipped out, with loading operations completed at the newly built Sever Bay terminal in the Taimyr region, carried by the high ice-class tanker "Valentin Pikul."

The inauguration ceremony of the Sever Bay terminal was broadcast on Russian state television. Sechin reported to Russian President Vladimir Putin, who was watching the ceremony from his office, that another Arctic-class tanker, the "Akademik Gubkin," was anchored near the terminal, awaiting berthing.

The Vostok Oil project is one of Russia's largest oil projects. Russia has long promoted the Northern Sea Route as a shorter maritime shipping lane connecting Europe and Asia, running along the country's northern coast. As project output grows, the volume of oil transported via the Northern Sea Route is expected to increase accordingly.

Russian Deputy Prime Minister Alexander Novak stated that the crude will be delivered to buyers in the Asia-Pacific region and western destinations. Sechin noted that the project's resource base exceeds 7 billion tonnes of low-sulfur, high-quality crude oil.

Sechin expects the Vostok Oil project to begin supplying 30 million metric tons of crude to global markets from the second half of next year; by 2030, annual deliveries are projected to reach 50 million tons. According to Bloomberg calculations, 50 million tons equates to approximately 1 million barrels per day, representing about 10% of Russia's current oil production. Sechin also indicated that, if market demand and economic conditions support it, the project could ultimately supply up to 100 million tons per year and operate for hundreds of years; continued exploration could further extend its operational lifespan.

As Vostok Oil output increases, tanker traffic along the Northern Sea Route will also grow. This route remains constrained by Western sanctions on Russia, harsh weather and ice conditions, and a shortage of high ice-class vessels.

The project was initially developed by Rosneft together with international commodity traders Trafigura Group, Vitol Group, and Mercantile & Maritime. Following Russia's invasion of Ukraine, these three traders sold their stakes in the project in 2022.

Rosneft had also sought other international partners. Two days before Russia's invasion of Ukraine, the company's then-first vice president, Didier Casimiro, told reporters regarding the Vostok Oil project: "Stay tuned."

South Korea is also testing commercial shipping along the Northern Sea Route. The country's first container ship to trial the route, the "PanStar Acro," departed from Busan New Port on August 22, entered Arctic waters on August 31, and has since been sailing westward along Russia's northern coast, expected to pass through the Vilkitsky Strait around September 10.

The Vilkitsky Strait, located between the Taimyr Peninsula and the Severnaya Zemlya archipelago, is a key passage on the Northern Sea Route. The "PanStar Acro" is currently navigating waters near the Taimyr region, where the Vostok Oil project's new export facility is situated; according to plan, the vessel is scheduled to arrive at Felixstowe, UK, around September 14.