SHARE
Image courtesy of Prokopenya Viktor/Wikimedia Commons.

Russia is gearing up to sell the largest oil field in West Siberia, a sale that could be worth as much as $1 billion.

According to Reuters, the country’s Natural Resource ministry said it is is considering plans to auction off the Erginskoye oilfield during the first or second quarter of 2016.

The field was developed by Rosneft and Gazprom and holds estimated reserves of 775 million barrels.

The asset is located near existing transportation infrastructure west of the Priobskoye field.

The field is unlikely to generate any tax breaks given to hard-to-recover reserves or remote fields for its future owner, analysts from UralSib told Reuters.

The Russian government initially expected to sell the Erginskoye field in the 1990s but scrapped those plans on concerns that the country’s crucial West Siberia reserves were dwindling.