In 1933, the newly formed Glavsevmorput (Chief Directorate of the Northern Sea Route) sent the freighter Pravda to Nordvik with an oil exploration expedition led by N. N. Urvantsev.
Сaptain Belitskiy had decided to approach Nordvik Bay from the east, between Poluostrov Paksa and Bolshoy Begichev Island.
According to Urvantsev, drilling at Nordvik over the next few seasons revealed small, shallow oil pockets in connection with salt structures with little commercial significance.
Although the original prospects for oil at Nordvik did not materialise, experience was gained in exploring for hydrocarbons within the continuous permafrost zones.
The penal colony was closed in the mid-1940s when Americans arrived at Nordvik as allies of the Soviet Union[citation needed] .