Arctic territory, today, is one of the most prospective territories for oil and gas companies. Development of the Arctic Region completely requires new technological advancement, and thus calls for intense attention and support from experienced institutions and research centers. Following the USGC research made in 2008, more than 80% of perspective Arctic rersources are located in offshore. This inevitably conveys technical and legislative risks that are not experienced onshore or in conventional offshore fields. Technical risks are associated with severe climatic conditions, sensitive ecological situations and lack of field development experience from arctic territories, as legislative risks vary within the arctic countries in question.

This present paper consists of two main parts - analysis of technical risks, and legislative risks influence (including taxation system) on field developments in the Russian Barents Sea and Norwegian Barents Sea. In the frame of technical analysis, risk classification system according to different Arctic Sea conditions are presented. Probability for each technical risk was assessed and included in the field development project evaluation. In order to achieve synergetic effect, valuation model of field development with technical risks were then incorporated into economic model, which includes legislative restriction and taxation. These conditions differ from territory to territory; for that matter Russian and Norway.

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