The South Kara Sea/Yamal basin is located in northern Russia within the Arctic Circle. Much of the province is thought to be gas-prone. Exploration to date has focused on Cretaceous reservoirs in the southern onshore area. However, several wells have also been drilled offshore, where, in 2014, a joint venture between Rosneft and ExxonMobil discovered the giant Pobeda gas field. Pobeda also contains significant volumes of oil, but further appraisal of these is required. This is likely to be delayed due to the current US and EU sanctions imposed on activities in the Russian Arctic. If oil reserves can be found in the basin, significant value can be created. However, the high-cost, harsh operating environment, and long lead times and production lives associated with discoveries mean that returns are limited.