• 4 hours British Utility Companies Brace For Major Reforms
  • 8 hours Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 10 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 11 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 12 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 13 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 14 hours Rosneft Signs $400M Deal With Kurdistan
  • 17 hours Kinder Morgan Warns About Trans Mountain Delays
  • 23 hours India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 1 day Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 1 day Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 2 days Exxon Starts Production At New Refinery In Texas
  • 2 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 2 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 3 days Enbridge Pipeline Expansion Finally Approved
  • 3 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 3 days OPEC Oil Deal Compliance Falls To 86%
  • 3 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 4 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 4 days Aramco Says No Plans To Shelve IPO
  • 6 days Trump Passes Iran Nuclear Deal Back to Congress
  • 6 days Texas Shutters More Coal-Fired Plants
  • 7 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 7 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 7 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
  • 7 days Renewable Energy Startup Powering Native American Protest Camp
  • 7 days Husky Energy Set To Restart Pipeline
  • 7 days Russia, Morocco Sign String Of Energy And Military Deals
  • 7 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 8 days China Set To Continue Crude Oil Buying Spree, IEA Says
Alt Text

OPEC Looks To Permanently Expand The Cartel

OPEC Secretary General Mohamed Barkindo…

Alt Text

Europe Stands Divided On Gazprom’s Nord Stream 2 Pipeline

Gazprom’s Nord Stream 2 megaproject…

Chechnya Courts Azerbaijan after Fallout with Russian Oil Giant

Chechnya Courts Azerbaijan after Fallout with Russian Oil Giant

As the license for Russia’s state-own oil giant Rosneft to explore war-torn Chechnya’s hydrocarbon reserves is set to expire, Azerbaijan is invited to consider the contract as Chechen leader Ramzan Kadyrov seeks to increase his bargaining position vis-à-vis Moscow.

On 4 April, Chechen officials announced that Rosneft’s license had expired and an invitation for exploration had been extended to Azerbaijan’s state oil company, SOCAR.

Baku is doing its best to downplay the issue, hoping to avoid the politics behind developments that could see it thrown in the middle of a battle between Russian Deputy Prime Minister Igor Sechin, a Rosneft elite, and Kadyrov.

Kadyrov fell out with Rosneft last year over the Russian oil giant’s failure to build an oil refinery in Chechnya – a massive project that was apparently promised to the Chechen leader in return for his patronage. With that in mind, Kadyrov is also hoping that Azerbaijan will help build the oil refinery.

It remains unclear whether Azerbaijan will take Kadyrov up on the invitation. So far, official Baku is balking at the massive security risks in undertaking exploration in Russia’s North Caucasus. But it is a tempting offer. Chechnya has an estimated 60 million tons of oil and 3 billion cubic meters of natural gas.

Baku, however, should be concerned. Though the link is rarely made between oil and Russia’s problems with the North Caucasus, the natural resource has much to do with the Chechen violence that has spread through Russia in the past several years. And Azerbaijan is not without its links to the Russian-Chechen oil nexus, particularly with the inception in 1999 of the Transneft oil pipeline monopoly, which controlled the Baku-Novorossiisk line. As Oilprice.com senior analyst John Daly wrote in an earlier article, this line was “the sole export route for Azerbaijani ‘early’ oil exports, which crossed 95 miles of Chechen territory.”

Kadyrov himself poses a potential security risk. Though Kadyrov was a creation of recently re-elected President Vladimir Putin, that relationship has since soured and by all appearances, Kadyrov is attempting to loosen the noose that is Moscow’s control.

On a broader level, Azerbaijan will likely prefer to wait things out a bit and to see how Chechen militants will respond to Putin’s return to office. Some predict a renewed outbreak of violence and terrorist attacks in Russia’s major cities.

By Jen Alic of Oilprice.com

Jen Alic is a geopolitical analyst, co-founder of ISA Intel in Sarajevo and Tel Aviv, and the former editor-in-chief of ISN Security Watch in Zurich.




Back to homepage


Leave a comment

Leave a comment




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