Rosneft has begun construction on an Arctic oil terminal and main cargo berth at the Bukhta Sever port in Russia that will be a part of the company’s Vostok oil project.

The objective of the new terminal is to facilitate the development of the Northern Sea Route. The terminal is located near Dikson in northern Krasnoyarsk Kray.

According to the Russian energy company, the Bukhta Sever port will become the largest oil terminal in the country. To be built by 2030, the port is expected to have 102 reservoirs.

The first phase of the oil terminal project will involve the construction of three cargo and two oil berths. These will have a total length of nearly 1.3km.

The project will also include an acceptance/shipment point that will have 27 tanks with a capacity of 30,000cbm each, apart from technological and auxiliary infrastructure facilities.

Rosneft said that oil to the Bukhta Sever port will delivered through a 770km long pipeline from the fields located in the Vankor and Payakha clusters, that are part of the Vostok oil project.

The infrastructure developed in phase 1 will enable the oil terminal to handle 30 million tons per annum. It will have scope to accommodate a gradual expansion to 100 million tons by the end of this decade.

The Vostok oil project is made up of 52 license areas located in the northern part of Krasnoyarsk Kray and in the Yamal-Nenets Autonomous District.

Earlier this month, Trafigura completed its exit from the Vostok oil project. The Singapore-based commodity trading company sold its shareholding in the project, which includes the associated non-recourse bank debt, to Nord Axis, for an undisclosed price.