Despite the downturn and sanctions, Russia has grown production but there are signs of fragility in the energy sector, panelists say.
“Russia is increasingly looking east and the various deals made between Rosneft and China are likely to see more Russian crude head to China permanently,” an analyst told Bloomberg.
The company plans to more than double its oil and gas production from overseas fields in four years.
Russia relies on companies including ExxonMobil, BP, Halliburton and Schlumberger for the latest technology and expertise.
The Obama administration’s targets include OAO Rosneft, OAO Novatek, OAO Gazprombank and eight defense firms.
Oil is now flowing from the last of three shallow water but very harsh environment fields developed by ExxonMobil in the sub-Arctic Sakhalin area off the east coast of Russia.
In a news release, the companies said they have signed agreements to create a joint venture, called Yermak Neftegaz, to explore in the West Siberian and Yenisey-Khatanga basins in the Russian Federation.
The deal flow appeared even smaller than it was in 2015, as oil companies around the world cut capital investments for the second straight year following a steep fall in oil prices, Reuters said.
According to Natural Resources Ministry data, the Layavozhskoye Field contains 9.8 million tonnes of oil and 140.1 billion cubic meters (Bcm) of natural gas reserves.
Rosneft and Statoil have launched exploration drilling in the Sea Of Okhotsk in Russia’s Far East, Rosneft quoted its Chief Executive Igor Sechin as saying June 2.
Rosneft plans to raise its stake in the Petromonagas joint venture from 16.7% to 40%.
Russian Energy Minister Alexander Novak said on Jan. 28 that Saudi Arabia had proposed that oil-producing countries cut oil production by up to 5 percent each in order to support weak oil prices.
According to a Reuters poll, Russian oil production in 2016 should rise to new post-Soviet yearly average high of 10.78MMbbl/d, as new fields come online and production costs stay lower.
It rose by 3.5% from a year-ago period thanks to higher output at its West Qurna-2 oilfield in Iraq, as well as in Timan-Pechora, Perm and Caspian regions in Russia.
The well is currently producing at a rate of 16.3 MMcf/d through a 27/64-in. choke, with a flowing wellhead pressure of 3,370 psi, JKX Oil & Gas said in a news release.
Output rose from 10.68 MMbbl/d in August and eclipsed the previous record of 10.71 MMbbl/d reached earlier this year, adding to a global glut that has battered oil prices.
One person was killed and six injured on July 27 in a gas explosion at the Verkhnechonsk Field in eastern Siberia operated by Russia's largest oil producer Rosneft, the company said.
Keppel O&M and Rosneft will have shares of 45% each in the JV, while MHWirth will hold 10% while adhering to existing U.S. and EU sanctions imposed on Russia’s offshore sector, Reuters reported.
Vadim Son will become CFO of Volga Gas Plc, the company working in Russia’s Volga region said April 13. Effective that day, Tony Alves resigned as CFO.
According to a news release, the companies signed a document that outlines the main areas of scientific and technical collaboration, including gas production, transportation, processing, underground storage and sales, process safety, information security, energy efficiency and environmental protection. The companies will also partner in R&D management.
Sources said that proposals refer to selling 50.08 percent in Bashneft, 10.9 percent in Alrosa and 10.9 percent in VTB.