While reindeer herding is an important way of life of the indigenous people of Nenets Autonomous Okrug, there are significant oil deposits in the area, and those involved in tradirtional activities are competing with oil companies for use of the land. Whle oil extraction is a main source of income for the Russian state, preserving the traditional way of life of its indigenous people is an explicit goal of the Russian authorities. The aim of this article is to examine the complex situation among the oil companies, Nenets people and local authorities.