• 4 minutes 5 Tweets That Change The World?
  • 7 minutes Trump Tariffs NOT China's Biggest concern. Chinese Shadow Banking Bigger. What is Shadow Banking You Ask ?
  • 11 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 15 minutes Glory to Hong Kong
  • 41 mins National Geographic Warns Billions Face Shortages Of Food And Clean Water Over Next 30 Years
  • 6 hours Trump will capitulate on the trade war
  • 5 mins PETROLEUM for humanity 
  • 6 hours USA pulls troops from Syria
  • 37 mins Scientists Endorse Mass Civil Disobedience To Force Climate Action
  • 2 hours KURDS LEFT HIGH AND DRY TO DIE?
  • 5 hours Hong Kong Protests Still Going Despite Their ''Love'' Of China? Weird ...
  • 1 hour Communist China Following Nazi Germany's Playbook
  • 54 mins Iranian Oil Tanker struck by missiles off Jeddah
  • 9 hours Oilfield Layoffs
  • 17 hours DING DING DING DING DING DING DING DING DING DING DING DING DING DING DING DING DING
  • 35 mins Hundreds of law suits, protests: Greta may show her angry face there? US Opens Up California Land for Oil, Gas Leasing
  • 5 hours How The US Quietly Lost The 1st Amendment
  • 2 hours A Week Of Absurd Stories From Round The World

SOCAR Eyes Big League

Bottom Line: An emerging joint venture between Russia’s Rosneft and Azerbaijan’s state-run SOCAR poises the Azeri company to enter an even bigger league.

SCOARAnalysis: In mid-August, we saw Rosneft heads and SOCAR officials sign a framework agreement for Russian oil and gas field exploration and development that extends not only to Azerbaijan, but also to other countries, for five years minimum.  Not only will Rosneft and SOCAR jointly market oil products and share pipelines and export terminals, we could see an asset swap across the board, upstream, midstream and downstream. SOCAR has light oil that the Russians want for their European refineries. SOCAR also has a Singapore-based oil trading house that Russia would love to get its hands on for a bigger market foothold in the East.

Recommendation: This is a major boost for Russia, which so far has a limited presence on the Azerbaijani energy scene, with Lukoil being the only Russian oil company there—and it is privately owned. But even though this initial framework agreement looks to be mostly about oil, we expect to see Rosneft make a play for Azeri gas assets, too, as it has made plenty of indications that it is attempting to diversify from oil into gas. SOCAR is becoming a powerhouse even on its own, though, and we are keeping a close eye on its forays into Turkey (via the TANAP pipeline) and its dealings in Southeastern Europe, particularly with Albania.




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