• 55 mins India Exempts State Oil Firms Mergers From Competition Approval
  • 3 hours Turkey Targets $5B Investment In Wind Energy By End-2017
  • 5 hours Weatherford Looks To Sell Assets To Ease Some Of $8B Debt
  • 6 hours OPEC Set To Move Fast On Cut Extension Decision
  • 8 hours Nigeria Makes First Step Away From Oil
  • 20 hours Russia Approves Profit-Based Oil Tax For 2019
  • 24 hours French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 1 day Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 1 day Oil Production Cuts Taking A Toll On Russia’s Economy
  • 1 day Aramco In Talks With Chinese Petrochemical Producers
  • 1 day Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 1 day Maduro Names Chavez’ Cousin As Citgo Boss
  • 2 days Bidding Action Heats Up In UK’s Continental Shelf
  • 2 days Keystone Pipeline Restart Still Unknown
  • 2 days UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 days Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 days Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 2 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 2 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 3 days Oil Prices Rise After API Reports Major Crude Draw
  • 3 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 3 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 3 days Statoil Looks To Lighter Oil To Boost Profitability
  • 3 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 3 days Whitefish Energy Suspends Work In Puerto Rico
  • 3 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 4 days Thanksgiving Gas Prices At 3-Year High
  • 4 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 4 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 4 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 4 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 4 days ConocoPhillips Sets Price Ceiling For New Projects
  • 7 days Shell Oil Trading Head Steps Down After 29 Years
  • 7 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 7 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 7 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 7 days Venezuela Officially In Default

Rosneft Says Profits Rising Despite Western Sanctions

Rosneft Says Profits Rising Despite Western Sanctions

Rosneft, Russia's largest oil producer, says it's working out ways to maintain its profitability despite increasingly tougher Western sanctions, and that its revenues so far are still soaring.

Rosneft CEO Igor Sechin issued a statement on July 25 saying the company has been developing steps to cope with the sanctions imposed by Western nations because of Moscow's actions in neighboring Ukraine this year. “Together with our partners – the world's leading oil companies -- we are working on a plan to minimize the consequences of including Rosneft on the sanction lists,” the statement said.

Two of those partners are the Exxon Mobil of the United States and Statoil of Norway, both of which plan to cooperate with Rosneft to develop Russia's Arctic oil reserves and other Russian oil that's difficult to extract. Statoil CEO Helge Lund said his company has studied the sanctions so far in place and found no reason to change its partnership plans with the Kremlin-owned oil company.

But that's only so far. Rosneft is among several Russian enterprises awaiting even tougher sanctions from the European Union, which so far has been reluctant to go as far as Washington in imposing sanctions on Russia. EU nations, after all, rely on Russia for one-third of their gas supplies.

Yet European leaders, caught in the deepest confrontation with Moscow since the Cold War, say they are determined to punish Russia further since a Malaysia Airlines jetliner was downed by a surface-to-air missile over Ukrainian territory controlled by Russian-armed separatists on July 17, killing all 298 people on board, most of them Dutch.

New European sanctions may include a ban on exporting oil- and gas-extracting equipment to Russia, which could interfere with Rosneft's efforts in the Arctic.

The first round of U.S. sanctions, imposed in May, in part targeted Sechin in response to Moscow's annexation of the Ukrainian peninsula of Crimea. Those measures forbid U.S. nationals to do business with Sechin, but may maintain ties with Rosneft itself because Sechin is not its majority owner.

The latest U.S. sanctions, imposed since the downing of the Malaysian jetliner, forbid individuals or companies with ties to the United States to extend medium- or long-term credit to Rosneft and several other large Russia's companies.

Meanwhile, Rosneft also issued a statement on July 25 announcing that its profits during the second quarter of 2014 rose fivefold over the same period in 2013 to 171 billion rubles, or $4.87 billion, eclipsing the average estimate of 156.7 billion rubles predicted in a Bloomberg News survey of 10 oil industry analysts.

Rosneft attributed this rise to a 24 percent increase in sales of oil and gas and elevated total revenue by 22 percent to 1.44 trillion rubles. Cash on hand, meanwhile, rose to 112 billion rubles during the quarter, the company said.

By Andy Tully of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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