US sanctions freeze Russia's Arctic plans

In response to US sanctions, Karmorneftegaz (ExxonMobil 33% Rosneft 67%) is winding-down operations on the Universitetskaya-1 exploration well in the Kara Sea. This is the biggest well of the year globally by prospect size (9.5 billion boe) and at an estimated one billion dollars could have been the most expensive well ever. The US sanctions target Arctic offshore, shale oil and deep-water. These were the pillars of Russia’s post 2020 oil strategy and deeply impact Rosneft and the Russian state.