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Post Tagged with: "Rosneft"

India’s Reliance says purchases of Venezuelan oil have been approved by the U.S.

Reuters NEW DELHI – India’s refining firm Reliance Industries (RELI.NS) on Thursday said its purchases of Venezuelan crude have been reported and approved by the U.S. government after American officials warned oil firms about their activity in Venezuela a day earlier. The United States on Wednesday said oil companies, including Reliance, Russia’s Rosneft (ROSN.MM), Spain’s Repsol (REP.MC) and U.S.-based Chevron Corp (CVX.N), need to tread cautiously in their activities in Venezuela, in an attempt to ramp up pressure on Venezuelan President Nicolas Maduro. “We are in frequent communications with U.S. government officials regarding Venezuela and continuously keep them apprised of our actions,” a Reliance representative said in an email to Reuters. Washington imposed sanctions early last year on state-run oil firm PDVSA in an effort to oust Maduro, whose re-election in 2018 was viewed as a sham by most Western Hemisphere nations. The White House on Wednesday hosted opposition[Read More…]

February 6, 2020 - 2:30 pm — Closing Bell Story, Crude Oil News, Energy News, International

BP to Enter India’s Fuel Retail Market with Reliance Tie-Up

From Reuters Global oil major BP is deepening its ties with Indian conglomerate Reliance Industries by forging a fuel retailing joint venture to capitalize on rising demand in Asia’s third-biggest economy. The move comes days after BP said it would build a network of charging hubs for electric vehicles with China’s Didi Chuxing, betting on the world’s largest market for such cars. BP will own a 49% stake in its new Indian joint venture, with the rest held by Reliance, operator of the world’s biggest refining complex. The companies did not disclose financial details of the deal. In 2011 BP acquired a 30% stake from Reliance in some of its exploration blocks and formed a gas sourcing and marketing tie-up. In 2017 the two companies signed agreements to explore options to work together to develop alternative fuels and mobility businesses. The new venture will take over Reliance’s 1,400-plus retail fuel[Read More…]

August 6, 2019 - 6:01 am — Closing Bell Story, Downstream, Energy News, Exploration and Production (E&P), International, Trade

Rosneft and Kurdistan Deals Halted by Iraqi Government

From Kurdistan 24 Authorities in Iraq have not yet resolved a dispute regarding agreements signed by Russian energy giants Rosneft and the Kurdistan Regional Government (KRG) for assets in the region, Iraqi Ambassador to Russia Haidar Mansour Hadi said earlier this week. Despite objections from the Iraqi government, the Russian energy giant has continued to sign deals with the KRG, most recently on May 25 when it announced it had signed an agreement to develop the Kurdistan Region’s oil and gas infrastructure. The deal, made at the St. Petersburg International Economic Forum, included the design of a new gas pipeline which could boost oil production in the Region up to 10,000 additional barrels of oil per day (bpd) by the end of 2018. According to Hadi, the signing of energy deals between Rosneft and the KRG “contradicts” the Iraqi Constitution. “In accordance with our constitution, only the central, Baghdad government has the authority to[Read More…]

June 1, 2018 - 2:50 pm — Closing Bell Story, Energy News

BP and Rosneft Expand Natural Gas Cooperation

A new MoU between BP and Rosneft will see more Russian natural gas flowing to Europe BP (ticker: BP) and Russian oil giant Rosneft signed a Memorandum of Understanding (MoU) in St. Petersburg Friday to bring a new stream of Russian natural gas to Europe by the end of this decade. Previously, BP said it could receive between 7 and 20 billion cubic meters of gas a year from Rosneft, but would only do so if Russian President Vladimir Putin agreed to break the monopoly on gas pipelines held by Gazprom. Under the terms of the agreement, Rosneft and BP’s wholly-owned subsidiary BP Gas Marketing Limited will enter into a long-term sales and purchase agreement for the supply of natural gas produced by Rosneft in order to ensure delivery of additional Russian gas supplies to European markets starting from 2019, according to a statement from the Russian company. “Co-operation with[Read More…]

June 2, 2017 - 5:15 pm — Closing Bell Story, International, Natural Gas News, Oil and Gas 360 Articles

Rosneft Looks to Collect on a 49.9% Stake in U.S. Oil Company

PDVSA may transfer 49.9% claim as part of debt settlement Russian state-owned oil giant Rosneft may end up owning U.S. downstream operator CITGO if Venezuela’s state-owned PDVSA is unable to pay back dues on a $1.5 billion loan from the Russian company. A 49.9% stake of CITGO, which is owned by PDVSA’s U.S. subsidiary, was used as collateral in December of last year in a loan with the Russian oil giant, just months after the company used the other 50.1% as collateral in a bond operation. The company owns three refineries with total capacity of 749 MBOPD, three fully-owned pipelines, six jointly-owned pipelines and a number of terminals along the East and Gulf Coasts, according to the company. CITGO’s parent company PDVSA has been struggling with lower oil prices since the beginning of 2015, which put Venezuela’s highly oil-dependent economy into a tailspin. With the picture for PDVSA not looking[Read More…]

April 11, 2017 - 12:56 pm — Closing Bell Story, Crude Oil News, Downstream, Natural Gas News, Oil and Gas 360 Articles

Russia Signs 23 Energy Agreements with Japan

Russia and Japan ink 23 energy-related agreements including offshore and LNG Russia and Japan deepened ties between the neighboring countries over the weekend as Russian President Vladimir Putin visited Japanese Prime Minister Shinzo Abe in Japan. The talks were set in the hopes of restarting a dialogue over four islands that each country has claimed a right to since the end of World War II, and included a number of economic deals, 23 of which were centered on energy. Russia has gradually been shifting its focus east following the implementation of sanctions against the country by the West over its annexation of Crimea. Prior to this weekend’s deals, the focus had been on China and India, with ties between Russia and Japan complicated by the territorial dispute over the islands, which Russia refers to as the Kuril Islands, and Japan calls the Norther Territories. Energy deals have presented an avenue[Read More…]

December 19, 2016 - 6:49 pm — China, Closing Bell Story, International, LNG, Oil and Gas 360 Articles

Russia Sells 19.5% Stake in Rosneft to Glencore for $11.3 Billion

Rosneft sale relieves budget pressures Russia has sold a 19.5% stake in Rosneft, the world’s largest-listed oil company and a state-controlled asset, for €10.5 billion ($11.3 billion) President Vladimir Putin announced on television with Rosneft CEO Igor Sechin. The stake was sold to a consortium made up of Swiss mining company and commodity trader Glencore (ticker: GLEN) and Qatar Investment Authority, itself Glencore’s largest shareholder. The Russian government will retain a controlling stake in the company, which is also partly owned by U.K. oil major BP (ticker: BP). The deal could ease concerns about budget funding through the next Russian presidential elections in spring 2018, Senior Partner at Macro Advisory Chris Weafer told The Wall Street Journal. Russia had been discussing a stake sale in Rosneft for some time as the country looks to privatize the oil and gas sector, but had its hand forced by low oil prices and[Read More…]

December 8, 2016 - 6:27 pm — Closing Bell Story, Mergers & Acquisitions, Oil and Gas 360 Articles

Weak Ruble: Good for Russian Oil Companies, Bad for Russian Government

Record Oil Production and Capital Spending Supported by Favorable FX Rate While Russian federal revenue from oil and natural gas production has declined significantly in response to low oil prices, oil and natural gas companies have actually increased investments or only seen modest declines, according to the EIA. In ruble terms, the Brent price has actually increased by 40% from 2010 levels while decreasing in dollar terms by 40%. This was due to the rapid devaluation of the ruble due to international sanctions and lower oil prices. The favorable conversion from petrodollars to rubles has also made it cheaper for Russian companies to produce from their assets. Low Oil Prices, Tax Structure Favor Companies, Hurts Government The country currently taxes hydrocarbon extraction and heavy oil exports in a structure that levies lower tax rates on companies under lower crude oil prices. As oil prices decline, petroleum companies retain a larger[Read More…]

October 20, 2016 - 6:16 pm — Closing Bell Story, International, Oil and Gas 360 Articles

Russia Hopes to Bring in $15.9 Billion with Sale of Rosneft and Bashneft Interest

State-owned Rosneft to acquire stake in Bashneft as Russia attempts to go ahead and “privatize” In a political U-turn, the Russian government has decided to allow state-owned oil giant Rosneft place a bid on fellow oil company Bashneft. The Kremlin originally opposed Rosneft’s involvement in the bidding process because pro-market groups within the government felt there was little benefit of one state-owned company acquiring another, particularly as the country tries to privatize state-owned assets. Rosneft’s planned participation sparked infighting in the Kremlin, prompting the government to postpone the bidding process, reports Reuters. It appears that the Russian government needs new sources of capital badly enough to yield to Rosneft President, and long-time Putin ally, Igor Sechin, however, as Deputy Prime Minister Igor Shuvalov said that steps to resume Bashneft’s privatization would resume with Rosneft being allowed to bid. The news comes as the country looks for ways to shore-up its[Read More…]

October 4, 2016 - 5:50 pm — Closing Bell Story, International, Mergers & Acquisitions, Oil and Gas 360 Articles

Putin Wants to Sell 19.5% Stake in Rosneft this Year

Chunk of Rosneft could bring Moscow as much as $11 billion Russia still plans on selling a 19.5% stake in its oil giant Rosneft (ticker: RNFTF) to help ease its financial deficit, and it could happen within the next 90 days, if the company can find “appropriate strategic investors,” said Russian President Vladimir Putin. “The Russian government has no need to hold such large stakes and we are committed to carrying out our plans,” Putin said in an interview with Bloomberg. “The question isn’t whether we want to or not, the question is whether it makes sense or not and at what moment?” The stake sale could generate as much as $11 billion, based on its current market value. That money could be used to help support the government as it wrestles with a balance sheet weakened by lower oil prices. Russia has been trying to privatize many of its[Read More…]

September 15, 2016 - 6:05 pm — Closing Bell Story, International, Oil and Gas 360 Articles

Russia Delays $10 Billion Rosneft Privatization

Russia may not be able to sell its stake in Rosneft in 2016 As low oil prices continue to put pressure on the Russian budget, the government in Moscow continues to look for ways to make up budget shortfalls, including the privatization of part of the state’s interest in Russian oil majors. The proposed sale of part of the state’s oil interests, along with privatization of other sectors, had been the government’s answer to raising 1 trillion rubles ($15 billion) to help prevent spending from the country’s reserves, but now the Russian government may postpone the sale of Rosneft, the country’s largest oil producer, as it waits for prices to improve. The Russian government plans to raise at least $10 billion from the sale of a 19.5% stake in Rosneft. Currently, the state owns 69.5% of the company through its parent Rosneftegaz. “For now, the plan is to sell Rosneft[Read More…]

August 10, 2016 - 4:55 pm — Closing Bell Story, International, Oil and Gas 360 Articles

Source: Gazprom St Petersburg International Economic Forum

Oil Prices Hurting Russian Deals, Russia Trying to Lure Back Investment

Oil and gas deal pipeline relatively thin at this year’s St. Petersburg Economic Forum There was a stronger showing of the heads of international oil and gas companies at this year’s St. Petersburg Economic Forum, but deals remained relatively light. Companies continue to cut energy investment as oil prices remain well below their triple-digit highs from two years ago, and uncertainty surrounding sanctions against Russia cast a shadow on the deal pipe. Gazprom (ticker: OGZPY) signed an exploratory deal with Royal Dutch Shell (ticker: RDSA) over Shell’s possible involvement in the Russian gas giant’s $10 billion gas export project from the Baltic Sea, while state-owned oil giant Rosneft (ticker: RNFTF) rubber-stamped a number of previously agreed deals with Italy’s Eni (ticker: E) and some Indian firms, reports Reuters. The relatively small number of deals contrasted sharply with the billions of dollars of deals signed at the forum in years past.[Read More…]

June 17, 2016 - 4:56 pm — Closing Bell Story, International, Oil and Gas 360 Articles, Today's News

Russia Performing Better in May

In a 7-2 victory over the U.S., Russia took the bronze medal in the world ice hockey championships on May 22. The victory over the team from the United States marked the third time in four years the U.S. has missed out on the chance to win bronze. Artemi Panarin, a Russian native who normally plays for the Chicago Blackhawks, said the team played better against the U.S. after losing to Finland in the semifinals. “I think we just relaxed today,” said Calder Trophy finalist Panarin. “Until now … the pressure was serious.” In the Russian economy, the pressure also seems to be easing, with GPD declining less than many analysts anticipated. Gross domestic product fell 1.2% from a year earlier after a decline of 3.8% in the previous three months, the Federal Statistics Service said May 16. That was less than all but one forecast of 22 analysts polled[Read More…]

May 31, 2016 - 6:53 pm — Closing Bell Story, International, Oil and Gas 360 Articles, Today's News

China May Buy 19.5% Stake in Rosneft

Sale of major Rosneft stake to CNPC signals strengthening ties between China and Russia China National Petroleum Corp. Deputy Chief Executive Wang Zhongcai said the company is interested in purchasing a stake in Rosneft, Russia’s state-owned oil company. The sale would strengthen the ties between the two countries, which have increasingly been working together on energy projects. Russia needs the cash Russia is looking to sell a 19.5% stake in Rosneft, the world’s largest listed crude producer, as it looks for ways to bridge its fiscal gap amid low oil prices. The Russian government has said the stake is worth $10 billion, reports The Wall Street Journal. In January, Chinese investment firm China Insurance Investment Ltd. invested into Russia’s Yamal LNG project as part of a wider $6 billion energy and infrastructure fund as the two countries increase their cooperation on energy. China has long spoke about increasing its share[Read More…]

April 21, 2016 - 5:26 pm — Closing Bell Story, International, Oil and Gas 360 Articles

China’s Oil Imports Up 20%

Saudi Arabia and Russia vie for market share in China Monthly oil imports to China in February were 20% higher in 2016 than the year before. The increased level of imports in February were the highest ever on a daily basis as the country takes advantage of low oil prices to increase stockpiles, reports Reuters. Saudi Arabia made up the largest portion of China’s February imports, with shipments averaging 1.38 MMBOPD, slightly below a record 1.39 MMBOPD in February 2012. Imports from Russia came in third behind Angola, with shipments of 1.03 MMBOPD, up almost 48% from last year. Russia is increasingly shifting its economy to markets in the east as tensions with the U.S. and Europe continue to deteriorate. Russian state-owned oil giant Rosneft (ticker: RNFTF) announced a number of deals with India this past week as well as the country looks to deepen ties with growing economies in[Read More…]

March 22, 2016 - 4:04 pm — Closing Bell Story, International, Oil and Gas 360 Articles

The Next China: Oil and Gas Companies in India Deepen Ties with Russia

Indian energy consortium increases shares in Russian oil fields Russia and India strengthened their ties over the weekend with several agreements which will increase Russia’s share in India’s energy markets and give India a greater share in a number of upstream projects in Russia. Russia’s state-owned oil giant Rosneft (ticker: RNFTF), Oil India, Indian Oil and Bharat Petroresources signed a Heads of Agreement for the possible acquisition of a 23.9% share in Vankorneft, a Rosneft subsidiary, by a group of Indian investors, the company said in a press release. Recoverable resources in the Vankor field, where the Russian company operates, was 361 million tons of oil and condensate, and 138 Bcm of gas, at the first of the year. In 2015, Vankor produced 22 million tons of oil and 8.71 Bcm of gas, making it one of Russia’s most productive fields. Rosneft also signed a Memorandum of Understanding with ONCG[Read More…]

March 21, 2016 - 4:05 pm — Closing Bell Story, International, Oil and Gas 360 Articles

Gazprom “Relaxed” About U.S. LNG

Deputy Chairman Medvedev says there’s no reason to start a price war with the U.S. Russia’s state-controlled gas giant Gazprom (ticker: OGZPY, Gazprom.com) has no plans to start a price war with the U.S. over natural gas in Europe, according to company deputy chairman Alexander Medvedev. “There is no need for us to launch any price war,” Medvedev told investors in London. “We are very relaxed about U.S. LNG, though very attentive.” Medvedev went on to say that U.S. LNG suppliers will find it difficult to compete in Europe with Russian supplies with the added cost of liquefaction. Gazprom has long been the single largest supplier of natural gas to Europe. Last year, Russian gas made up 31% of European gas consumption, up from 30.2% the year before. The company has publicly stated that it plans to hold its share of European markets around 30%, but a non-public budget obtained[Read More…]

February 5, 2016 - 4:32 pm — Closing Bell Story, International, LNG, Oil and Gas 360 Articles

As ConocoPhillips Exits Russia, Tehran and Moscow Strengthen their Energy Ties

ConocoPhillips sells stake in Rosneft joint venture Five years ago, U.S. oil major ConocoPhillips (ticker: COP) sold its single largest asset in Russia, a stake in Lukoil (ticker: LKOH), for $9.5 billion. Last week COP announced that it has sold its 50% stake in the Polar Lights joint venture with Russian state-owned oil company Rosneft (ticker: RNFTF), its last project in Russia. The recent sale ends ConocoPhillips’ quarter century stint in Russia. ConocoPhillips was one of the first Western companies to invest in Russia following the fall of the Soviet Union, with the registration for its Polar Lights JV made in 1992. Disappointing returns, along with political difficulties associated with operating in Russia, led COP to divest Russian projects. Initial production on the Polar Lights project was approximately 14 MMBO per year, but has since declined to 8,200 MBOPD, reports Reuters. The Polar Lights Production represents just 0.5% of COP’s[Read More…]

December 29, 2015 - 4:10 pm — Closing Bell Story, Exploration and Production (E&P), International, Oil and Gas 360 Articles

Putin Gives His Outlook on Oil and Gas, Russia’s Economy

Exploration is a Major Part of Our Future During his time in office, both as the Russian president and prime minister, President Vladimir Putin has held a conference every year. The conference is held with members of the press, both Russian and international, and typically involves reporters asking questions of Putin who then responds off the cuff, though it is thought that Putin likely agrees to some questions ahead of time. Last week, many topics were addressed in this year’s press conference, Putin’s 11th. Topics ranged from ISIS and Syria’s President Assad, to Putin’s feelings on the quality of work being done by his government and the economic crisis facing Russia. Of particular interest to those seeking answers on the Russian economy was Putin’s outlook on Russian oil and gas. Below are excerpts from the conference. The entire text can be found here. State of the Russian economy Alexander Gamov,[Read More…]

December 21, 2015 - 5:56 pm — Closing Bell Story, Exploration and Production (E&P), International, Oil and Gas 360 Articles

Russia Decreasing Oil Export Duty by 9% Starting December

The new export duty in Russia will be $88.40 per ton The export duty on oil in Russia will decrease to $88.40 per ton starting December 1, Alexander Sakovich of the Russian Finance Ministry told TASS. The new export duty represents a 9% decrease from the $97.10 per ton being charged in November. Oil and gas export duties represent a major source of income for the Russian state, with 50% of the federal budget, 70% of export revenues, and 25% of GDP coming from energy exports. Average oil prices last month amounted to $44.33 per barrel, or $323.60 dollars per ton, Sakovich said. In September, they were slightly higher, averaging $47.18 per barrel, or $344.40 per ton. About-face; previous legislation looked to increase oil export taxes The move is an interesting change of heart, as earlier this month, the Russian government discussed increasing taxes on the oil and gas sector,[Read More…]

November 17, 2015 - 6:14 pm — Closing Bell Story, Exploration and Production (E&P), International, Oil and Gas 360 Articles

Oil Exports from Russia to Japan are Up 20% in 2015

Japan increasingly buying its oil from Russia Russia and Japan are becoming increasingly close energy partners, a trend that Igor Sechin, CEO of Rosneft (ticker: RNFTF) believes will continue into the future. Sechin said today that Russia’s oil exports to Japan rose 20% year-on-year in January-August 2015 despite a mutual decline in trade, Sechin said during a Russia-Japan energy cooperation conference in Tokyo, reports TASS. “The potential of export from Russia to the Asia-Pacific Region can be estimated at over 300 billion cubic meters of gas a year,” Sechin said. “Total gas reserves in the mainland part of the Eastern Russia equal 8.7 trillion cubic meters and the resource potential is over 33 trillion cubic meters,” Rosneft CEO said. Rosneft’s CEO believes that the company will supply a total of 4.2 million tons (about 31 million barrels) of crude oil by the end of this year. “We’re facing positive dynamics.[Read More…]

November 6, 2015 - 5:37 pm — Closing Bell Story, International, LNG, Oil and Gas 360 Articles

Will Russia Survive the Oil & Gas Downturn?

Russia Experts Discuss How Today’s Commodities Prices and Shifting Market Dynamics are affecting the Russian Oil & Gas Industry in this Exclusive Oil & Gas 360® Analysis Around the world, in places where oil and gas is a dominant resource, countries, kingdoms, companies and individual billionaires have been created by the extraction and sale of these fuels. The continuing importance of oil and gas production as a global economic engine can’t be overstated. This is nowhere more evident than in Russia, where 50% of the federal budget, 70% of export revenues, and 25% of the country’s total GDP comes from energy exports. The Russian oil and gas industry is dominated by giants. The state gas giant, Gazprom (ticker: OGZPY), has reserves of 36 trillion cubic meters (1.27 quadrillion cubic feet), making up 72% of Russia’s gas reserves and 17% of global reserves. The company produces approximately 70% of the Russia’s[Read More…]

October 15, 2015 - 11:00 am — Exploration and Production (E&P), International, Oil and Gas 360 Articles, Popular, Trending

Rosneft HQ with Kremlin in the background Source: Rosneft

Russia is the World’s Largest Producer of Crude Oil and Lease Condensate – EIA

Russia produced roughly 10.9 MMBOPD in 2014 While the United States became the world’s largest producer of hydrocarbons in 2014, Russia remained the largest producer of crude oil and lease condensate, according to the U.S. Energy Information Administration (EIA). In 2014, the country produced an average of 10.9 MMBOPD of crude oil and condensate. Russia exported more than 4.7 MMBOPD of crude oil and lease condensate in 2014, based on data from the Federal Customs Service of Russia. Countries in Asia and Europe received more than 98% of Russia’s crude oil exports. Asia accounted for 26% of Russia’s crude oil exports, and Europe – which depends on Russia for more than 30% of the region’s oil supply – accounted for 72% of Russian crude oil exports. Russia’s economy largely depends on energy exports: oil and natural gas revenues accounted for 68% of total export value in 2013. Much of Russia’s[Read More…]

August 6, 2015 - 4:31 pm — Exploration and Production (E&P), International, Oil and Gas 360 Articles

Rosneft Asks Russia for an End to Gazprom’s Export Monopoly

Update: Energy Minister Wants to Maintain Monopoly Alexander Novak, the Energy Minister of the Russian Federation, came out in favor of continuing Gazprom’s monopoly of exporting pipeline natural gas on July 28, reports Russian news agency Tass. “We are focusing on maintaining a single export channel,” he said at a Chamber of Commerce meeting. A letter sent by Rosneft to Russia Energy Minister asked for the right to export gas via pipeline and split up the company into separate production and transportation companies Russia’s largest oil producer Rosneft (ticker: RNFTF) has asked the Russian government to allow it to export gas through pipelines, putting an end to the export monopoly held by Russian state-owned Gazprom (ticker: OGZPY). In a letter sent to the Energy Ministry, Rosneft has also asked that Gazprom be split into separate producing and transportation companies, reports The Moscow Times. Rosneft has proposed the spin off in[Read More…]

July 23, 2015 - 6:26 pm — International, Oil and Gas 360 Articles

Россия. Санкт-Петербург. 17 июня 2015. На территории выставочного комплекса Ленэкспо во время подготовки к Петербургскому международному экономическому форуму 2015. Евгений Курсков/ТАСС|A view of the Lenexpo Exhibition Complex ahead of the 19th St. Petersburg International Economic Forum in St. Petersburg, Russia, June 17, 2015. Yevgeny Kurskov/TASS

Nearly $300 Billion in Deals From St Petersburg Forum

Over 200 agreements signed as part of St Petersburg economic forum The St Petersburg International Economic Forum (SPIEF) saw 205 deals signed by various companies. Russian oil major Rosneft (ticker: RNFTF) was one of the most active companies at the event, signing 58 agreements, according to the company. In total, the 205 deals amounted to $293.4 billion, according to Rosneft. Attendance at the conference was up this year after many Western companies chose to decline their invitations to the annual forum held in St Petersburg due to Russia’s involvement in Ukraine. Many European companies attended this year’s forum, although U.S. companies still abstained. Rosneft signed several major deals during the forum in all sectors of its business. In E&P, the company sold a 20% interest in the Taas-Yuryakh Neftegazodobych project, which will develop one of the largest gas fields in eastern Siberia. The company also signed Memorandums of Understanding (MOU) with[Read More…]

June 24, 2015 - 6:49 pm — International, Oil and Gas 360 Articles

Over $1 Billion in Deals coming out of Forum in Russia

Attendance at this year’s St. Petersburg International Economic Forum (SPIEF) is up from a year ago when many Western companies decided to decline invitations in the wake of Russia’s involvement in Ukraine. This year, many American companies have decided to abstain from attending again, but many European oil majors joined their Russian counterparts in St. Petersburg to announce over $1 billion in deals and plans to expand their ties with Russia. BP closes $750 million agreement with Rosneft in St. Petersburg In a joint press release issued by BP (ticker: BP) and Russian oil major Rosneft (ticker: RNFTF), the companies announced that Rosneft will sell a 20% state of Taas-Yuryakh Srednebotuobinskoye oil and gas condensate field. The field is one of the largest in eastern Siberia and currently produces about 20 MBOPD. As part of the deal, BP and Rosneft will work on expanding infrastructure and further exploring the field[Read More…]

June 19, 2015 - 4:59 pm — International, Midstream, Oil and Gas 360 Articles, Popular

Rosneft CEO: U.S. Sets the Direction of the World’s Oil Markets, not OPEC

Igor Sechin told reporters that the U.S. is the most important player in global oil The head of Russian oil major Rosneft (ticker: RNFTF) said that it is the United States, not OPEC, that calls the shots in global oil markets. Despite OPEC’s decision last November to maintain production in order to protect market share, Sechin says that OPEC has lost influence following the U.S. shale revolution. “In essence, the sole market, which has all the sets of financial and technological tools, is the U.S. market, which has become the key regulator,” Sechin told reporters, adding that oil prices in the United States set the tone of the global industry.

June 17, 2015 - 7:19 pm — International, Oil and Gas 360 Articles, OPEC

Rosneft to Buy 49% Stake in Essar Oil for $8 Billion

Rosneft buying into India India’s Essar Oil (ticker: ESSAROIL) plans to sell a 50% stake, minus 1 share, to Russia’s oil giant Rosneft (ticker RNFTF) for $7-$8 billion, according to a report from the Economic Times. The deal would give Rosneft more inroads to Asia’s third-largest economy and reduce India’s reliance on Iranian crude oil. Another source told ET that Rosneft was also interested in acquiring an equity stake in Essar’s flagship Vadinar refinery. The refinery accounts for the majority of the company’s valuation. To minimize cash payout, Rosneft may pay partly in cash and partly in crude supply at a discounted price, a source familiar with the deal said. When contacted for details, Essar said it does not comment on market speculation. Rosneft did not respond to the question at all.

June 16, 2015 - 7:04 pm — International, Oil and Gas 360 Articles

Russia Continues to Attract Western Oil Majors Despite Sanctions

“Political differences do not strongly affect serious business”: European majors eye slate of upcoming opportunities Attendance at Russia’s St. Petersburg International Economic Forum is up from last year after many Western companies decided to back out of last year’s conference following Russia’s annexation of Crimea. “A week before the beginning of the forum we have 5,072 confirmed applications, which is more than we had last year. Both the number of companies, and the companies’ top managers [planning to attend the forum] is increasing,” said St. Petersburg Governor Georgy Poltavchenko, reports Sputnik News. Poltavchenko noted that many of the companies were from the U.S. and Europe despite international sanctions against Russia. The St. Petersburg International Economic Forum has been held annually since 1997. The event gathers heads of states and governments, as well as heads of international companies and prominent economic experts from around the world. The 2015 forum will be[Read More…]

June 15, 2015 - 2:21 pm — Exploration and Production (E&P), International, Oil and Gas 360 Articles

Russian Finance Ministry Rejects $25 Billion Aid Request by Rosneft

Rosneft alone contributes about 25% of the country’s total tax revenue; commodities price cut taking its toll Russian state-owned oil giant Rosneft (ticker: RNFTF) was denied aid by the Russian Finance Ministry, according to reports from Russian news source Vedomosti. The $25 billion aid package was approved by the Economic Development Ministry, but then rejected after being sent to the Finance Ministry. A letter from Deputy Finance Minister Andrei Ivanov, said the company did not provide adequate basis for approving funding, reports Vedomosti. The paper cited four anonymous sources from the Finance Ministry who said the ministry was trying to prevent Rosneft from receiving additional aid, believing that the oil industry was better off than most following the country’s economic crisis. Rosneft warns of project delays Rosneft has warned that failure to grant the company assistance could result in delays in future projects, which could make it more difficult for[Read More…]

June 3, 2015 - 5:50 pm — International, Oil and Gas 360 Articles