Russia helps China drill deeper into the Arctic

Melting Arctic ice is increasing interest in developing the Arctic

When the new Chinese President Xi Jinping visited Russia as his first official foreign destination last week, one of the agreements signed on the sidelines was a deal between the Chinese National Petroleum Corporation (CNPC) and Russia’s oil company Rosneft, which paves the way for more exploration in the Arctic. The BarentsObserver says the cooperation makes the Chinese concern Rosneft’s third foreign partner in the Barents Sea.  The area in question is located to the west of the archipelago of Novaya Zemlya and to the northeast of Gazprom’s Shtokman field. The BarentsObserver says the most likely option is that CNCP will get a 33 percent stake in a joint venture and bear all costs for initial exploration and drilling. The area is one of the least explored areas on the Russian continental shelf. The hydrocarbon potential is believed to be considerable.