Russia announces new Arctic oil discovery

Trine Jonassen
russia oil gazprom arctic yamal peninsula yamalo-nenets

Russian energy major Gazprom Neft has discovered a new oil field on the Yamal Peninsula that is the largest discovered in the region in three decades, according to a company release.

The new find is located in the Arctic zone of Yamalo-Nenets Autonomous Region, home to the world's largest natural gas reserves but also a region with significant oil potential. Drilling and exploration are challenging as the peninsula is almost entirely covered by permafrost.

The field is part of a large oil and gas cluster in the southern part of the peninsula, according to the company. It was discovered after three years of exploration. Estimated geological reserves are 55 million tons, the company's press release stated.

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