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Costs for the development have swelled to about $50 billion as the industry copes with lower commodity prices, prompting concern among analysts about project partners’ capex recovery.
Despite much of the upstream industry’s Arctic ambitions being in deep freeze, Russia has been quietly operating its handful of producing projects with little fuss.
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.
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.
Italian oil major Eni has no plans to pull out of its joint venture with Russia's Rosneft despite escalating sanctions against Russia, CEO Claudio Descalzi says.
Rosneft had misgivings about the resources of the deposits, a Rosneft spokesman said. The company also did not agree with the sales terms.
Houston-based Schlumberger applied to the watchdog for approval to buy the stake in late July in a deal widely seen as testing the state of relations between Russia and the U.S.
Gazprom's interests in Bangladesh are represented by Gazprom International, a specialized company aimed at implementing oil and gas projects outside Russia.
OMV said the deal would reduce the group’s production costs, adding it would be entitled to the field’s dividends starting 2017, with annual payments of about $200 million expected in the mid-term.
Russian oil output was stagnant at 10.97 million barrels per day for a third month in a row in May, again exceeding quotas set under a global deal.
Russian oil output stood at 10.97 million barrels per day (bbl/d) in April, unchanged from an 11-month high in March and above a target set by a deal with OPEC on curbing output, Energy Ministry data showed on May 2.
New $3.4 billion plant has capacity of 8 Bcm a year.
Rosneft has said it could delay the start of production at some new fields, namely east Siberia’s Uyrubcheno-Tokhomskoye and Russkoye in the northern Yamal Nenets region.
Iran and Russia signed a deal on March 14 to develop two oil fields in Iran, according to Iranian state TV.
Russian Energy Minister Alexander Novak said on June 26 he discussed U.S. sanctions on Russia and Moscow’s plan to expand its Nord Stream gas pipeline to Germany, which has irked Washington, in talks with U.S. Treasury and Energy Secretaries.
U.S. Energy Secretary Rick Perry will meet Russia’s energy minister next week in Washington, D.C., a person familiar with the situation said on June22.
ExxonMobil’s exit from projects will not affect the Sakhalin project off the eastern coast of Russia, ExxonMobil and Rosneft spokesmen said.
The U.S. sanctions list also now includes Sergey Topor-Gilka, head of the Russian engineering company Technopromexport, as well as multiple subsidiaries of oil producer Surgutneftegaz.
Novatek has reached an agreement to acquire the Chernichnoye Field from oil company Mangazeya JSC, the company said on Dec. 11.