ESG Factors Management in Arctic Oil and Gas Field Development Projects: Economic Assessment and Key Performance Indicators System (Case Study of Bashneft-Polyus LLC)

This study proposes a KPI-based system to manage ESG factors in Arctic oil and gas projects and assesses the economic benefits using the Trebs and Titov fields of Bashneft-Polyus as a case study. Stricter ecological rules, rising social expectations and the demand for green finance make systematic ESG integration vital for competitiveness. The methodology aligns three KPI blocks – Environmental, Social and Governance – with economic metrics: NPV, IRR and payback period. Applying the framework predicts a 29% cut in specific CO₂ emissions (0.28 → 0.20 t/t oil), a 44% reduction in injury frequency and an ESG rating increase to 0.85. Financially, the project yields an NPV of 3.8 billion RUB and a 3.5-year payback. The results demonstrate that rigorous ESG governance can coexist with high economic returns, offering a replicable model for Arctic assets. Practical value lies in a sustainable development toolkit tailored to harsh climatic, logistic and regulatory constraints that oil and gas operators face north of the Arctic Circle. The proposed indicators provide transparency for stakeholders and facilitate access to preferential financing while reinforcing longterm corporate resilience.