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Exxon, BP Defy White House; Extend Partnership With Russia
Submitted by Nick Cunningham via OilPrice.com,
Several of the largest oil companies in the world are doubling down in Russia despite moves by the West to isolate Russia and its economy. ExxonMobil and BP separately signed agreements with Rosneft – Russia’s state-owned oil company – to extend and deepen their relationships for energy exploration. The U.S. slapped sanctions on Rosneft’s CEO Igor Sechin in late April, freezing his assets and preventing him from obtaining visas.
However, the sanctions do not extend to Rosneft itself, allowing western companies to continue to do business with the Russian oil giant. ExxonMobil signed an agreement with Rosneft, extending its partnership to build a liquefied natural gas (LNG) terminal on Russia’s pacific coast. Known as the Far East LNG project, the export terminal will receive natural gas from Russia’s eastern fields as well as from Sakhalin-1, an island off Russia’s east coast. Rosneft announced the deal in a press release on its website on May 23.
The following day, Rosneft and BP signed an agreement to jointly explore oil in the Volga-Urals region. It will consist of a pilot project in the Domanik formations, and if successful could lead to the development of shale oil in Russia. Rosneft will maintain a 51 percent ownership of the joint venture and BP will own 49 percent.
The signing of the agreement occurred during a ceremony at the St. Petersburg International Economic Forum. The oil majors attended despite pressure from the White House to boycott the event. Many big name companies chose not to attend even though they have large economic interests in Russia, including PepsiCo, German companies E.ON and Siemens, and some of the biggest banks in the U.S.
By defying the White House, the oil majors salvaged what would have otherwise been an embarrassing event for the Kremlin. The absence of the world’s largest companies would have demonstrated Russia’s increasing isolation. Instead, Russia used the event to detail plans to expand its massive energy sector. “(They're) eager to continue work on projects in Russia,” Russia’s Energy Minister Alexander Novak said of ExxonMobil and Royal Dutch Shell.
BP CEO Bob Dudley emphasized his company’s determination to stick with Russia. “We are very pleased to be a part of Russian energy complex,” he said at the forum. “President (Putin) has urged us today to invest into shale oil... There's so many natural resources in Russia, the openness and partnerships Russia has with companies from all over the world is a good thing for energy,” Dudley added.
Even though there are international sanctions on Rosneft’s Igor Sechin, Dudley insisted that their business with Rosneft will continue. “It does not affect our cooperation with the company itself,” Dudley said, referring to sanctions on Rosneft’s boss. He was even able to meet Sechin privately.
French oil giant Total S.A. also signed an agreement with Lukoil – Russia’s second largest oil company – to explore for shale oil and gas. Total’s chief executive Christophe de Margerie also went to lengths to reassure the Russian hosts. “My message to Russia is simple – business as usual,” he said at the event.
To be clear, the oil companies are not legally running afoul of international sanctions. But their collective shrug in the face of European and American pressure to boycott Russia – along with the $400 billion natural gas deal Russia signed with China last week – illustrates the difficulty with which the West will have at undermining Russia’s energy sector, if it chose to do so. Russia is too big of a prize for the likes of ExxonMobil, BP, and Shell.
Or viewed another way, the moves to deepen business in Russia suggest that the world’s biggest oil companies are confident that the U.S. and Europe won’t be so bold as to truly attack Russia’s energy machine.
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someone should remind those oil co's of the "costs"
“When it is a question of money, everybody is of the same religion.” – Voltaire
It is Exxon's job to make money for their shareholders within the law. They are breaking no laws here.
And the more NatGas available to the world, the better! Even the greenies ahould be happy with Exxon building a plant there!
fortunately, we can still restrict US-based companies so that they only do business with whoever I want them to
hugs,
penny
http://en.wikipedia.org/wiki/Penny_Pritzker
Who runs barter town?
Trust fucking oilprice.com and their perpetual incompetence to fail any mention of the only thing that matters -- the Kara Sea.
That's where the new oil is, if there's any to be had.
These other deals are in-field development.
It's the Kara Sea partnerships that matter.
Well, here is a link from Rosneft that provides some info:
http://www.rosneft.com/Upstream/Exploration/arctic_seas/
The deposits look fairly large, but large enough to matter?
Nyet you would not say that if you ever seen siberia...
higher prices will bring explore
Volkodav, do you even know where Siberia is? That land in Russia is the ancestral homeland of the Hungarians, who were chased out of there. Those resources belong to the Hungarians, not some Russians who have only lived there for 3+ hundred years.
http://en.wikipedia.org/wiki/Siberia
And the Peruvians want all that gold and silver the Spanish stole...
... Welcome to the Real World...
How does all of this get sorted out?
off topic...
wtf does hungarians enter into this? your posts are all over the place...
my point is that Siberia has vast resources yet to be discovered
otherwise, you seem know nothing about this subject except off topic wiki
so you are hungarian troll?
The Huns were in Siberia first, until their ambitions chased them out of there and sent them to Hungary. Now that vast resources are about to be discovered, the Hungarians reserve the right to expropriate their homelands to Hungary and let everyone share in the new found wealth.
That is the Russian Dream...
The Vladster!
Putin it to Washington over big oil.... Bitchez
Misleading blog piece. Says that Oil companies double down in Russia whereas they merely attended a conference they were scheduled to take part in.
I bet it has nothing to do with the billions of dollars in equipment they have in Russia right now which is gonna be nationalized soon enough by Putina.
More precisely, it shines a light on what matters and what doesn't:
"The signing of the agreement occurred during a ceremony at the St. Petersburg International Economic Forum. The oil majors attended despite pressure from the White House to boycott the event. Many big name companies chose not to attend even though they have large economic interests in Russia, including PepsiCo, German companies E.ON and Siemens, and some of the biggest banks in the U.S."
Putin is pro business as long as the Russian people get their fair share. He has 51% in joint partnerships just like the Chinese do with western companies. The costs to develop these fields are huge. Russia is the only place with huge potential reserves where these companies can develop a field and get a cut of the profits. If they weren't making money they would not go to Russia. Plus it gives Putin a leverage with the west, and that is good. Everyone wins.
Huh?
I have a feeling many employees of America's biggest banks won't be attending international forums out of legal self preservation, sanctions and criminal & civil prosecutions are a two way street and American bankers run the triple peril of not only getting prosecuted in a Russia friendly state, but also international EU courts as well as American courts.
Are some of America's biggest bankers guilty of large scale multi billion dollar trans-national crimes?
Undoubtedly.
Does Russia and its burned investor allies* have the resources to mount a competent criminal and civil prosecution of US bankers and security purveyors?
Undoubtedly.
Who are Russia's allies? For one *Israelis, and they're in the NSA loop, would Israelis burn their DC allies for a buck?
LOL
Yes, this is the solution to leftism; ignore them.
Wait, I thought White House and Exxon, BP have same owner.
That's what makes divide and conquer so much fun.
Wind 'em up and let 'em go!
I see that we're thinking along the same lines.
Who ever said all of the different oligarchs had to have the same goals and needs? Divide and conquer works both ways.
i do what i want [/cartman]
Wipe out the EPA by drilling oil. Stop saving a useless government job.
No EPA!
If drawing red lines ain't workin' for our Kenyan president, he could always try holding his breath until he turns blu... uh...
Nevermind.
Stick a fork in 'em. He's done.
If drawing red lines ain't workin' for our Kenyan monkey, he could always try holding his breath until he turns blu... uh...
Nevermind.
There fixed it for you
This is so f*ed up. Am i the only one who thinks the fact that the US has sanctioned an individual and not a company so that US oligarchs can still do business with said company is beyond the pale. I know BP is british, but still. This is so stinky, i dont see how anyone could report it without holding their nose. I want off this ride already- surely this has to be close to an endgame?
I know im not the only one, thats why im here- its just i threw up in my mouth a bit when i read this piece
CrazyCatLady - In poker if you don't know who the sucker is you are it. The world was conquered by Central Bankers long ago and countries managed by the CFR.
Growth will remain sluggish in the West and has a lot more room to grow in the East. Puppetmasters are telling you the West is bad. Tge demonize West memo is Kubaki theatre. In general Americans got a raw deal but to be fair the 80's and 90's were a lot of fun.
China is the new reserve currency and Russia the military muscle until they are ready to police the globe as America once did. There are real dangers in the world as most people have to dig for information so many mistakes leading to large military misadventure may occur. Make no mistake if America revolts it will be attacked by all sides. In fact, that is what I hedge against. But now mostly prepped, I'll hope for the best. After all, schorching $15T a year economy isn't exactly in everbodies interest.
I agree- im just pissed that my world is in this shape- and the masters dont even try to sweet talk me anymore- just lay out the torture instruments like i should be excited to be ass raped.
Corporations are people too you know.
That means that they can be hung from a rope.
Actually its not beyond the Pale but directly in the center of it http://en.wikipedia.org/wiki/Pale_of_Settlement
Thanks Smitty, i had no idea that little slice of history even existed
So all China needs to do about the Vietnam blowup is sign BP on as a partner?
Im starting to believe - thee is another deal Putin has agreed to - o lay off Ukraine and NOT help the east -
something doesnt add up - these guys dont say fk you to administration - this was staged
funny
Did anyone think Corporations had any loyalty to anyone, other than themselves? I'm not saying they should or shouldn't side with the US, but don't expect Corporate folks to have any loyalty for any reason to any one.
They have loyalty to their jobs.
If they had walked away, Rosneft would have shrugged and welcomed Petrochina to shale drilling with open arms.
That's decades of cash flow gone, and their salaries would go with it.
I've got no problem with how it all works. AFAIC, I say let's pump every last drop we can get our hands on. I've got about 30 years max, let's keep the party rolling. I'm about to go out and buy another RV and do some more traveling. Drill baby drill!!
Not to mention my XOM holdings would decline.
So ine the case of Rosneft, management is held accountable but in the case of JPM et al?
The merchant has no country.
(I just came up with that myself)
obviously, the WH is not in charge. or put another way, is a puppet that says one thing for public consumption, all the while knowing the powers that be will do as they planned.
You described Ron Paul.
and a good one!
Well at the very least this should tell everyone where the Zionist Yids live and breath!...
A more economicially dependent world probably encourages world peace.
Wait, what?
It's not economically dependent.
It's oil dependent.
When that is one sided, the have nots are going to be butchered. Period.
Study up on the gold rush days and the "company towns" and "company stores". You think they sold shit at cut prices?
Cue "Russian dude kissing his miniature giraffe."
No pain? No pain!
there is only one rule
GET NUKES OR GET INVADED.
if russia had no nukes, the oil companies would be investing in a major invasion of russia now. Russian nuclear weapons are the low cost insurance policy against coercion. Those nukes are what are keeping exxon and others at the cooperation table , bargaining and negotiating for the rights to invest and profit.
let's hope this stays this way.
Defy Whitehouse?
You can bet the UST is defying the Whitehouse as well as most Obama insiders including probably Obama's own trusts and lawyers and even John Kerry, they're front running war investment, they decide "targets" on whether or not they own them or can buy them at a discount.
We R mafia
Uh, oh... Bath House Barry is getting in the way of Big Oil.
Stay away from motorcades in Dallas, there Mr Kenya.
Hahahahahaha...... in your face you incompetent, arrogant, narcissistic, illegal indonesian kenyan muslim sociopathic ignoramus liar in chief only interested in its grand imperial golf lifestyle......
Just got the ultimate lube job from Exxon.
BP - We didn't forget the Gulf of Mexico treatment.
So where's the cry to Boycott Exxon and BP?
Pretty bad when some of your own fascist controllers turn their back on you.
Look for these companies, and many others, to quietly transform into "European" companies.
These aren't just large oil companies. As you can see in the link below, Royal Dutch Shell (#1), ExxonMobil (#2) and BP (#4) are three of the four largest companies in the damned world, in terms of what really matters, namely revenues and profits.
http://money.cnn.com/magazines/fortune/global500/2012/full_list/
So, again, how's that isolation thing going Obumbler?
RuSSia is the world's biggest country by the land area and has nearly 14,000 miles of the land border. It has ageing and dying population where an average drunk male has difficulty surviving past 50 years old.
The borders are porous and impossible to defend. It is a dream like scenario for terrorist activities. Since RuSSia actively sponsors and exports terrorism (neo-nazi Terek Wolves Kozaks that run the separatist show in eastern Ukraine) then it is a fair game when RuSSia's neighborhood returns the favor. My guess is that's going to happen soon.
Let them build these pipelines (and spend gazillion of RubbleSS) before blowing it up. RuSSia is going to find out how true is the old proverb: "You fight with sword, you die from sword". Good Luck....
Russia is Fort White Man. We (USA) once was. Then we did this; http://kevinmacdonaldespanol.wordpress.com/2013/04/16/americas-unpardonable-crime/
Your deluded.
Putin won lock stock and barrel. I bet GE will be in on this too.
http://site.ge-energy.com/prod_serv/products/oc/en/oilfield_technology/o...
I would like for someone to ask Jeff Immelt this question. Do you or are you providing oil field services to Russian companies and/or are you planning to do so in the future?
All we got here from GE was shut down plants, unemployment (from Obama's the jobs CZAR) and fucking windmills which don't work that we paid for and of course Ge paid how much in taxes?
Exxon to Barky:
FUSA.
It's odd that since the Monterey deposit was 96% wrong, they estimate the Bakken has 4 years left (make it 2 yrs.), and the Keystone is still on hold; they choose to wheel & deal where there's low hanging fruit?
Nobody wants the shit the USSA is trying to peddle on behalf of the Israeli's.
http://www.counterpunch.org/2006/04/25/is-the-us-waging-israel-s-wars/
Obama is irrelevant
Really, even if one's a small
royalty holder in Texas exploiting
oil around the world is a supply
competer as well as a habitat
destroyer. Many probably don't
see that lack of same interest.
'I got the oil honey, you got the crime, we'll go ...... Except! I do have the means to defend my borders. And the wells within.
Oh good. One reason the US goverment should shun the oil lobby once and for all, prepare for all electric cars. The ONE thing that needs to be done is build a battery with a higher specific energy. It is that simple. We have the means. We do not need oil.