Russia called on to suspend arctic oil ambitions

The Russian branch of the World Wide Fund for Nature said Russia needs to suspend exploration and production efforts in the arctic because of low oil prices.

At a press summit organized by the Russian Natural Resources Ministry, WWF Director Igor Chestin said it was time to halt ambitions in the Russian arctic.

"We need to declare a 10-year moratorium on oil and gas exploration in the arctic," he said. "At current oil prices, these projects are absolutely unprofitable."

U.S. energy company Exxon Mobil has a partnership with Russian oil company Rosneft for work in the arctic waters of Russia. With Western sanctions impeding developments, the Russian government has placed a greater emphasis on domestic exploitation of arctic reserves.

Low crude oil prices have starved major energy companies of the capital they need to fund exploration and production campaigns. Some campaigns in the arctic may need oil at around $75 per barrel to prove economical, about 25 percent above the current market for crude.

Nevertheless, Rosneft said Wednesday it plans to invest $400 billion on developing arctic reserves over the next 20 years. If predictions are accurate, the company said output from the region could account for as much as 30 percent of Russia's total oil production by 2050.

In terms of revenue, Rosneft said it could bring in $2.8 trillion in revenue from arctic programs.

Nikolai Malyshev, Rosneft's deputy director for operations on the Russian continental shelf, said the company was reviewing its current programs because of a lack of viable partners.

Russia is among the countries hardest hit by current oil market conditions. The Russian currency at one point in December hit its lowest point ever when compared with the U.S. dollar.