• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 2 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 3 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 2 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 23 mins Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 53 mins Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 1 hour BMW to add 2,000 more jobs at Dingolfing plant
  • 2 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 21 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 18 hours Itt looks like natural gas may be at its lowest price ever.
  • 4 hours Saudi A to Splash $100 Bln on India
  • 5 hours Washington Eyes Crackdown On OPEC
  • 12 hours NEW FERUKA REFINERY
Flurry Of Bullish News Boosts Oil Prices

Flurry Of Bullish News Boosts Oil Prices

Oil prices reached 2019 highs…

The World’s Largest Battery To Power The Permian

The World’s Largest Battery To Power The Permian

A huge 495-MW energy storage…

BP, Rosneft Team Up On Arctic Gas Exploration

Gazprom vessel

Sanctions or no sanctions, BP, which is a 20-percent shareholder in Russia’s Rosneft, struck a new joint venture with its partner for the exploration and exploitation of gas deposits in the Yamal-Nenets autonomous region in northwestern Siberia.

In a statement, Rosneft said the two companies had agreed to jointly develop the reserves of two license blocks—Kharampursky and Festivalny—which hold a combined 880 billion cu m of natural gas.

Rosneft will have 51 percent in the joint venture and BP will have 49 percent. The deal now awaits relevant regulatory approvals.

It seems that there is no cause for sanction concern for BP: it will not in fact be violating U.S. sanctions against Russia, and specifically Rosneft. The sanctions specifically target Russia’s shale oil and gas resources, Reuters wrote in a story from this August, aiming to slow down Russia in the exploration of its shale oil and gas by cutting its access to Western shale extraction technology.

But BP and Rosneft’s joint venture will explore unconventional gas deposits, as Norway’s Statoil is doing in cooperation with Rosneft. U.S. sanctions target exclusively shale deposits that require hydraulic fracturing, while in Russia there are also other types of unconventional mineral resources, Reuters noted. In this case, these are deposits in limestone—a rock that’s deeper than shale but, like shale, requires hydraulic fracturing to release the oil and gas.

Interestingly, a Reuters review of Statoil news releases revealed that prior to the sanctions, first introduced in 2014, the company referred to its exploration activities in Russia as targeting shale oil and gas development. After the sanctions went into effect, shale was replaced with limestone in all company releases. What’s more, Statoil said it had cleared its exploration in Russia with the relevant Norwegian authorities.

For BP, this is the second joint venture with Rosneft, after last year the two agreed to develop West Siberian oil and gas through a company called Yermak Neftegaz. The value of the deal was estimated at US$6 billion at the time.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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