The tiny Russian Arctic town of Dikson is set to see a major new port for oil shipping

Prime Minister Mikhail Mishustin signed a decree approving the construction of a massive new Kara Sea terminal last week.

By Atle Staalesen, The Independent Barents Observer December 14, 2020
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The seaport of Dikson will get a major facelift with the coming of a massive new oil project. (Thomas Nilsen / The Independent Barents Observer)

Big changes are on the way for Dikson, a Russian Arctic town of about 500 residents located on the northern tip of the Taymyr peninsula. Here, on the tundra that stretches to the Kara Sea, will come a terminal that annually can handle up to 25 million tons of oil.

A decree on the construction of the new infrastructure was on December 9 signed by Prime Minister Mikhail Mishustin. It grants the company Taymyrneftegaz-Port the right to build an artificial piece of land that is to house the installations.

The Ministry of Transport is commissioned to follow up the implementation of the decree over the next 24 months.

The new Sever seaport will be located about 40 kilometers southwest of Dikson and serve as a key logistical hub for the Vostok Oil project.

The project is now a top priority for Rosneft and its leader Igor Sechin. The powerful oilman has in the course of 2020 met with President Vladimir Putin four times to discuss the venture that ultimately could help the president meet his ambitious objectives for Arctic shipping.

Putin has insisted that shipments on the Northern Sea Route reach at least 80 million tons in course of year 2024.

The Vostok Oil is projected to deliver 30 million tons per year by 2024, and later up to 100 million tons per year.

In his meeting with Putin in November this year, Igor Sechin left no doubt that developments are moving forward as planned.

The project includes about 100 drilling rigs that will be placed on the oil-rich Taymyr tundra, and a 770-kilometer oil pipeline that will bring the vast volumes of oil to the Sever terminal.

At least 400,000 workers will be needed for the construction phase, about 130,000 of them the company’s own employees and contractor employees, Rosneft says.

Rosneft in mid-November signed a deal with Singapore-based trader Trafigura on the acquisition of a 10 percent share of the project.

The Russian company is also negotiating with several more potential partners, among them companies from India.

Talks are also believed to be in process with BP.