Having submitted the applications together with complimentary documentation and project outlines to the federal Ministry of Natural Resources, the company's directors believe that exploration activity will sustain the company's overall profitability and competitive advantage over the long run.
The new blocks were selected and put forward by the Russian Ministry of Natural Resources on the basis of studies conducted between 2001-04 by the West Siberian Institute of Oil and Gas Geology (Tyumen city). The new fields present significant commercial interest and allow further exploration of preliminarily mapped structures.
Overall, the additional licenses cover 700,000 acres of exploration territory and potentially would double ZNG's current holdings.
In light of the Kremlin's pledge to relieve the tax burden on petroleum producers so as to stimulate the export of refined products, securing more license blocks is strategically advantageous in an increasingly lucrative marketplace. The anticipated tax revision is scheduled for October of this year.
"We are not running out of oil... we are running out of cheap oil," states Siberian Energy's CEO David Zaikin in an interview with Forbes. "We have to develop new territories to get more oil." These new licenses continue the company's commitment to addressing global energy needs.
Most Popular Articles
From the Career Center
Jobs that may interest you