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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.
Russia relies on companies including ExxonMobil, BP, Halliburton and Schlumberger for the latest technology and expertise.
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.
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.
Rosneft said the number of drilling rigs will increase by 19% following the deal, Reuters reported.
No agreement has been reached to date, the press release said, and any potential transaction requires regulatory approvals and other conditions including definitive documentation.
Russia as well as other non-OPEC and OPEC producers have agreed to slash output by almost 1.8 million barrels per day to fight global oversupply.
Russia is ready to continue working with OPEC, a source said, adding that Moscow welcomed a flexible approach by OPEC's leader Saudi Arabia to accommodate rising output from Nigeria and Libya.
The two companies recently signed a memorandum of understanding confirming their interest in further developing Evrotek-Yugra, a joint enterprise between Gazprom Neft and Repsol, according to a news release.
By applying new technologies, Rosneft aims to increase oil output by a total of 500 million tonnes in the next 20 years, CEO Igor Sechin wrote in the Izvestia daily newspaper.
OPEC and non-OPEC countries are committed to bringing global oil inventories down to the industry's five-year average, Saudi Energy Minister Khalid al-Falih said May 31.
Saudi Arabia and Russia, the world's two top oil producers, agreed May 15 on the need to extend oil output cuts for a further nine months until March 2018 to rein in a global crude glut, pushing up prices.
New sanctions on Russian energy projects proposed by the U.S. Senate are aimed at boosting LNG exports from the U.S. to Europe, an official from Gazprom was quoted as saying.
New oilfields lead to larger capacity of Caspian pipeline.
The U.S. and EU imposed economic sanctions on Russia over its annexation of the Crimea region in 2014 and role in the conflict in eastern Ukraine.
Novatek is the main shareholder in Yamal LNG, which is due to start producing LNG this year, with a stake of 50.1%.
Russian Energy Minister Alexander Novak confirmed earlier reports that OPEC and non-OPEC combined production cuts for January stood at 86% of initial targets, described by the International Energy Agency as "one of the deepest" in history, Reuters said.