• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 6 hours Satellite Moons to Replace Streetlamps?!
  • 1 hour U.S. Shale Oil Debt: Deep the Denial
  • 2 days US top CEO's are spending their own money on the midterm elections
  • 23 hours EU to Splash Billions on Battery Factories
  • 2 hours The Dirt on Clean Electric Cars
  • 1 day The Balkans Are Coming Apart at the Seams Again
  • 5 hours Owning stocks long-term low risk?
  • 6 hours Can “Renewables” Dent the World’s need for Electricity?
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 2 days Uber IPO Proposals Value Company at $120 Billion
  • 2 days 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 2 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 2 days U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
Is Uranium On The Way Back?

Is Uranium On The Way Back?

Kazakhstan’s state-owned uranium miner has…

Putin Hails ExxonMobil’s ‘Cooperation’ in Arctic Despite Sanctions Regime

Russian President Vladimir Putin is praising ExxonMobil as a paragon of “cooperation” for beginning work on a project to drill for oil in the Arctic despite stiff Western sanctions on Russian oil companies.

“Today, commercial success is driven by efficient international cooperation,” Putin said July 9 from his Black Sea residence in Sochi in a video conference call to Glenn Walker, ExxonMobil’s manager for Russia, and Rosneft CEO Igor Sechin, who were at the drill site in the Arctic’s Kara Sea. “[D]espite certain current political difficulties, pragmatism and common sense prevail.”

The American oil giant’s decision not to abandon the project despite the sanctions is widely viewed as measure of support for Rosneft, the Kremlin-owned oil giant managed by Sechin, a close Putin ally and target of sanctions imposed by Washington.

Putin spoke the same day ExxonMobil began drilling the project’s first well and in fact gave the start order during the videoconference. He called the effort “unique in many ways” and said it will “use the latest technologies” both to extract oil and to preserve what he called the region’s “sensitive ecology.”

The Russian president also spoke of the importance of international cooperation in the project. “In spite of the difficult current political situation, pragmatism and common sense still have the upper hand, and that is very gratifying,” he said. “In our opinion, this is a truly responsible, business-like approach, and only such an approach can be productive.”

U.S. – and EU -- sanctions over Russia’s aggressiveness in Ukraine are aimed at depriving Russian oil companies’ access to capital and Western technology. The sanctions were not imposed on any U.S. companies, so how they will affect the Kara Sea enterprise is unclear.

For his part, Exxon’s Walker, speaking in Russian, said ExxonMobil is eager to maintain its business ties with Russia. “Our cooperation is a long-term one,” he said. “We see big benefits here and are ready to work here with your agreement.”

The payoff for the $700 million investment in the Kara Sea is expected to be huge, Rosnefit’s Sechin said, pointing to two geological surveys of the area. “This is the most ambitious project in the world’s oil and gas industry,” he said in during the call.

Sechin said the amount of oil available in the Kara Sea could rival the output of some of the world’s biggest deposits. “This project will undoubtedly both open new horizons for the Russian Federation and improve energy security globally,” he said. “[W]e can say that this project is comparable, in terms of reserves, with those in Saudi Arabia and by far exceeds the offshore potential in the Gulf of Mexico, Alaska and Canada.”

By Andy Tully of Oilprice.com


x

Join the discussion | Back to homepage

Leave a comment
  • Andrey Palyura on August 13 2014 said:
    Nice article Andy.
    In case of success that project really makes Russia as a "world power house" for long future. And I am sure that the whole world benefits from it. Any way we should move from confrontation to cooperation, nations should hear each other and respect mutual interests.
    Andrey
    Crimea.

Leave a comment

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