Russia taps Far East oil field

Hobbled by sanctions, Russian energy company Rosneft announced it joined its U.S. partners at Exxon Mobil in starting oil production from a Far East field.

The Russian oil company said the production platform tied to the Arkutun-Dagi field yielded its first oil supplies Monday. Rosneft said the field should have a full-year peak production rate of about 32 million barrels of oil.

Rosneft is the target of Western economic sanctions. Igor Sechin, its chief executive officer, is also the target of punitive economic measures.

Sechin in August asked the Kremlin to use a national welfare fund to support its growing debt. With oil prices at historic lows, the Russian economy entered 2015 while teetering on the brink of recession.

With new oil coming from its Far East operations, Rosneft said it estimated tax revenues from the field would add about $9 million to the state and regional budgets.

The Arkutun-Dagi field is the last of three regionally to be developed. Two others, Cayvo and Odoptu, went into service in 2005 and 2010, respectively.

Exxon Mobil holds the controlling interest in the project alongside Indian and Japanese partners. The company made no reference to sanctions when announced first production from Arkutun-Dagi.