The report, ‘Russian Roulette: International oil company risk in the Russian Arctic’, said western oil companies including, BP, Exxon Mobil, Statoil and ENI, are seeking to boost their oil reserves by striking deals with Russian state-backed corporate giants Gazprom and Rosneft.
According to the report, major western oil and gas firms who are considering to collaborate with Russian energy giants to gain access to the country’s Arctic resources are gambling shareholders’ money on ‘a five-bullet Russian roulette’.
The report said that western energy companies form joint ventures, where they invest money and know-how, in exchange for access to new oil fields in the Arctic.
The study found with oil majors providing the majority of the money and carrying majority of exploration costs, the strategy is exposing investors to enormous risks.
