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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.
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.
Rosneft said the number of drilling rigs will increase by 19% following the deal, Reuters reported.
Gazprom Neft said on Jan. 9 that its affiliate, Gazpromneft-Yamal, completed the construction of Russia’s first ever multilateral well with four horizontal cased-hole sidetracks, at its Novoportovskoye Field.
Moscow-based oil company Lukoil reached one million tonnes of oil produced at the Yarega Field since the beginning of 2017, the company said on Dec. 26.
Novatek has reached an agreement to acquire the Chernichnoye Field from oil company Mangazeya JSC, the company said on Dec. 11.
Russian Energy Minister Alexander Novak said the process of exiting the OPEC deal depends on how the global oil market recovers and on the scale of oil demand.
Michael Flynn, a central figure in a federal investigation into Moscow's alleged interference in the 2016 U.S. presidential election, pleaded guilty on Dec. 1 to lying to the FBI.
Russia’s Gazprom Neft will work with the world’s largest oil producer Saudi Aramco in hard-to-recover oil production and on a technology known as hydraulic fracturing, Gazprom Neft CEO Alexander Dyukov said on Oct. 18.
The fund between Russia and Saudi Arabia was part of efforts by two of the world's biggest oil producers to expand cooperation, Russian Energy Minister Alexander Novak said.
House Science and Technology Committee Chairman Lamar Smith, a Texas Republican and climate change denier, asked the CEOs of the technology companies to turn over documents by Oct. 10 that detail the involvement of Russian-based or funded entities detected on their platforms, information on ads they purchased and any communications concerning ads advocating for “so-called green initiatives.”
The company has billions of dollars in debt coming due in the months ahead. And the Rosneft deal—CEFC’s most high-profile to date—will aggravate its debt burden.
Several provisions of the sanctions law signed by U.S. President Donald Trump earlier this month target Russia’s energy sector, which produces much of its foreign income, with new limits on U.S. investment in Russian companies.