Russian government to select developers

Russia’s President Dmitry Medvedev signed a law July 18 giving Prime Minister Vladimir Putin and his government full control over oil and gas development on the country’s continental shelf. The government itself will now select companies to develop the Arctic reserves, rather than holding auctions or tenders.

“The continental shelf is our national heritage. This was done consciously to ensure rational use of the national wealth,” Medvedev said in a televised meeting with Deputy Prime Minister Igor Sechin, who oversees the energy industry. Sechin is the former deputy chief of Putin’s presidential staff and is chairman of Rosneft’s board of directors. Medvedev was chairman of Gazprom’s board of directors until he was elected president earlier this year.

According to the new law only state-owned companies with a minimum of five years’ experience working on the continental shelf will be eligible to operate the projects, meaning the two majors Gazprom and Rosneft.

—Sarah Hurst