• 1 hour Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 6 hours British Utility Companies Brace For Major Reforms
  • 10 hours Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 12 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 13 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 14 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 15 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 16 hours Rosneft Signs $400M Deal With Kurdistan
  • 19 hours Kinder Morgan Warns About Trans Mountain Delays
  • 1 day 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
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 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
  • 4 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
  • 8 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
Natural Gas: Fading the Weather

Natural Gas: Fading the Weather

Recent news reports on warm…

UK Oil And Gas Costs To Rise 100% If Brexit Fails

UK Oil And Gas Costs To Rise 100% If Brexit Fails

Brexit negotiators’ failure to secure…

ExxonMobil and Rosneft to Develop Arctic Oil in $500 Billion Deal

ExxonMobil and Rosneft to Develop Arctic Oil in $500 Billion Deal

On Monday, at the suburban residence of Russian Prime Minister Vladimir Putin, the chief
executives of the US and Russian oil giants, ExxonMobil and Rosneft, signed a deal to collaborate in the development of oil and natural gas fields in Russia and North America. The agreement was officially announced on Wednesday and holds the potential for $500 billion to be invested in the exploration and production of oil in the Arctic and the Black Sea.

The joint venture will grant Exxon access to some of the world’s richest sources of crude oil and other hydrocarbons in the Russian Arctic and the Black Sea. Recoverable hydrocarbons in the Arctic fields around the Kara Sea, north of Siberia, are estimated to be in the region of 85 billion barrels of oil equivalent, with the first few exploratory wells to be drilled in 2014.

In turn Rosneft will take a minority stake in two of Exxon’s projects in the US and Canada, with an option of a further stake in a project in the Gulf of Mexico.

The Russian Deputy Prime Minister Igor Sechin promised that his government will support the deal in the belief that it will help to modernise the whole Russian economy. Although he admitted that the project will “to take several decades to implement.”

Industry analysts agree that extracting oil in the harsh Arctic environment will be a costly process and only profitable with heavy tax benefits. Sechin has promised that any Arctic project would be exempt from export duties and property tax, and only be charged oil extraction tax at flexible rates. Exxon’s CEO, Rex Tillerson said that these tax breaks “will allow us to develop these resources now.”

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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