• 3 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 5 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 7 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 9 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 11 hours Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 11 hours Aramco Says No Plans To Shelve IPO
  • 3 days Trump Passes Iran Nuclear Deal Back to Congress
  • 3 days Texas Shutters More Coal-Fired Plants
  • 3 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 3 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 3 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 4 days Renewable Energy Startup Powering Native American Protest Camp
  • 4 days Husky Energy Set To Restart Pipeline
  • 4 days Russia, Morocco Sign String Of Energy And Military Deals
  • 4 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 4 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 4 days India Needs Help To Boost Oil Production
  • 4 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 4 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 4 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 4 days District Judge Rules Dakota Access Can Continue Operating
  • 5 days Surprise Oil Inventory Build Shocks Markets
  • 5 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 5 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 5 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 5 days Oil M&A Deals Set To Rise
  • 5 days South Sudan Tightens Oil Industry Security
  • 6 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 6 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 6 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 6 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 6 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 6 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 6 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 6 days Niger Delta State Looks To Break Free From Oil
  • 7 days Brazilian Conglomerate To Expand Into Renewables
  • 7 days Kurdish Independence Could Spark Civil War
  • 7 days Chevron, Total Waiting In The Wings As Shell Mulls Majnoon Exit
  • 7 days The Capital Of Coal Is Looking For Other Options
Saudi Arabia Looks To Shelve Aramco IPO

Saudi Arabia Looks To Shelve Aramco IPO

Saudi sources have confirmed that…

Are Oil Stocks Close To A Breakout?

Are Oil Stocks Close To A Breakout?

As oil markets continue to…

Russia And Japan Sign 23 Energy Agreements

Natural Gas

Russia and Japan ink 23 energy-related agreements including offshore and LNG

Russia and Japan deepened ties between the neighboring countries over the weekend as Russian President Vladimir Putin visited Japanese Prime Minister Shinzo Abe in Japan.

The talks were set in the hopes of restarting a dialogue over four islands that each country has claimed a right to since the end of World War II, and included a number of economic deals, 23 of which were centered on energy.

Russia has gradually been shifting its focus east following the implementation of sanctions against the country by the West over its annexation of Crimea. Prior to this weekend’s deals, the focus had been on China and India, with ties between Russia and Japan complicated by the territorial dispute over the islands, which Russia refers to as the Kuril Islands, and Japan calls the Northern Territories.

Energy deals have presented an avenue for the two countries to increase cooperation, however, even as the ownership of the islands remains in contention.

“Energy is a strategic area of Russia-Japan cooperation,” Putin said, noting Russia’s “reliable” LNG supplies, in excess of 8 percent of Japan’s needs.

Japan is also one of the top buyers of Russia’s ESPO and Sokol crude.

The deals included Russian state-owned oil giant Rosneft and a consortium of Japanese companies comprising Marubeni Corporation, Japan Oil, Gas and Metals National Corporation (JOGMEC) and INPEX Corp. signing a Heads of Agreement for joint exploration, development and production offshore Russia, according to Rosneft.

Related: U.S. Shale Is Now Cash Flow Neutral

“This enables the company to monetize its stakes in promising projects and accelerate their development. Engaging strategic partners, leaders of the global oil and gas industry, in Russian offshore projects will also ensure effective hydrocarbon exploration and production and allow sharing the geological risks between the parties,” the company said.

“In the event that hydrocarbons are discovered as a result of exploration in the area, which is in close proximity to Japan, the three Japanese companies expect that the project will promote energy security in Japan through the resultant benefits of greater diversity of the country’s energy sources and a short transportation distance,” the Japanese companies said.

Other key areas of potential cooperation include attracting Japanese investors to the construction of the second LNG plant in Skhalin, Far Eastern LNG, exploring the possibility of an “energy bridge” between Russia and Japan, and laying a Sakhalin-Hokkaido gas pipeline.

(Click to enlarge)

The Kuril Islands off the coasts of Russia and Japan

“The implementation of these large-scale projects will supply Japanese consumers with additional LNG and power at affordable prices and at the shortest distances,” Putin said.

Related: Why Oil Markets Don’t Have To Worry About Libya

Russia and Japan create $1 billion investment fund for economic development

To help finance the deals made between Russia and Japan last weekend, The Russian Direct Investment Fund (RDIF) and Japan Bank for International Cooperation (JBIC) signed a memorandum of understanding (MoU) to establish a Russia-Japan Investment Fund (RJIF). Under the MoU, RDIF and JBIC have agreed that each of them will invest $500 million for the joint investments through RJIF and a joint investment framework, according to a press release from RDIF.

JBIC also signed a MoU with state-owned gas giant Gazprom on general cooperation principles in financing joint projects with Japanese companies, and opened a €200 million ($209.4 million) credit line for Russia’s next LNG plant, Novatek’s Yamal LNG in the Arctic scheduled for a 2017 launch, reports Platts.

By Oil & Gas 360

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Russian Jew on December 21 2016 said:
    Isn't Russia totally isolated? I didn't get it.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News