Sunday, January 16, 2011

BP Expands in Russian Arctic

BP has formed a partnership with Russian oil giant Rosneft to explore areas of the Russian Arctic continental shelf. The deal is worth about $7.8 billion, and applies to three license blocks totaling approximately 50,000 square miles. BP and Rosneft will set up an Arctic technology center to promote recovery of hydrocarbons from the Russian Arctic.

Rosneft is owned by the Russian government, and its chairman also serves as deputy prime minister. Vladimir Putin pledged support for the partnership. The combination of increasing oil scarcity at the global level, and enhanced access to fossil fuel resources in the Russian Arctic (caused by climate change), creates an obstacle to potential Russian support for geoengineering. For many in the Russian government, global warming presents great opportunities in the Arctic, opportunities that could be jeopardized by climate engineering projects.

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