• 22 hours Iraq Begins To Rebuild Largest Refinery
  • 1 day Canadian Producers Struggle To Find Transport Oil Cargo
  • 1 day Venezuela’s PDVSA Makes $539M Interest Payments On Bonds
  • 1 day China's CNPC Considers Taking Over South Pars Gas Field
  • 1 day BP To Invest $200 Million In Solar
  • 1 day Tesla Opens New Showroom In NYC
  • 1 day Petrobras CEO Hints At New Partner In Oil-Rich Campos Basin
  • 1 day Venezuela Sells Oil Refinery Stake To Cuba
  • 2 days Tesla Is “Headed For A Brick Wall”
  • 2 days Norwegian Pension Fund Set to Divest From Oil Sands and Coal Ventures
  • 2 days IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”
  • 2 days Goldman Bullish On Oil Markets
  • 2 days OPEC Member Nigeria To Issue Africa’s First Sovereign Green Bond
  • 2 days Nigeria To Spend $1B Of Oil Money Fighting Boko Haram
  • 2 days Syria Aims To Begin Offshore Gas Exploration In 2019
  • 2 days Australian Watchdog Blocks BP Fuel Station Acquisition
  • 3 days Colombia Boosts Oil & Gas Investment
  • 3 days Environmentalists Rev Up Anti-Keystone XL Angst Amongst Landowners
  • 3 days Venezuelan Default Swap Bonds At 19.25 Cents On The Dollar
  • 3 days Aramco On The Hunt For IPO Global Coordinators
  • 3 days ADNOC Distribution Jumps 16% At Market Debut In UAE
  • 3 days India Feels the Pinch As Oil Prices Rise
  • 3 days Aramco Announces $40 Billion Investment Program
  • 3 days Top Insurer Axa To Exit Oil Sands
  • 4 days API Reports Huge Crude Draw
  • 4 days Venezuela “Can’t Even Write A Check For $21.5M Dollars.”
  • 4 days EIA Lowers 2018 Oil Demand Growth Estimates By 40,000 Bpd
  • 4 days Trump Set To Open Atlantic Coast To Oil, Gas Drilling
  • 4 days Norway’s Oil And Gas Investment To Drop For Fourth Consecutive Year
  • 4 days Saudis Plan To Hike Gasoline Prices By 80% In January
  • 4 days Exxon To Start Reporting On Climate Change Effect
  • 5 days US Geological Survey To Reevaluate Bakken Oil Reserves
  • 5 days Brazil Cuts Local Content Requirements to Attract Oil Investors
  • 5 days Forties Pipeline Could Remain Shuttered For Weeks
  • 5 days Desjardins Ends Energy Loan Moratorium
  • 5 days ADNOC Distribution IPO Valuation Could Be Lesson For Aramco
  • 5 days Russia May Turn To Cryptocurrencies For Oil Trade
  • 5 days Iraq-Iran Oil Swap Deal To Run For 1 Year
  • 8 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
  • 8 days Mexico Blames Brazil For Failing Auction

Breaking News:

Iraq Begins To Rebuild Largest Refinery

IEA Dashes Bullish Sentiment In Oil

IEA Dashes Bullish Sentiment In Oil

Inventories have been falling and…

Russia And Japan Sign 23 Energy Agreements

Natural Gas

Russia and Japan ink 23 energy-related agreements including offshore and LNG

Russia and Japan deepened ties between the neighboring countries over the weekend as Russian President Vladimir Putin visited Japanese Prime Minister Shinzo Abe in Japan.

The talks were set in the hopes of restarting a dialogue over four islands that each country has claimed a right to since the end of World War II, and included a number of economic deals, 23 of which were centered on energy.

Russia has gradually been shifting its focus east following the implementation of sanctions against the country by the West over its annexation of Crimea. Prior to this weekend’s deals, the focus had been on China and India, with ties between Russia and Japan complicated by the territorial dispute over the islands, which Russia refers to as the Kuril Islands, and Japan calls the Northern Territories.

Energy deals have presented an avenue for the two countries to increase cooperation, however, even as the ownership of the islands remains in contention.

“Energy is a strategic area of Russia-Japan cooperation,” Putin said, noting Russia’s “reliable” LNG supplies, in excess of 8 percent of Japan’s needs.

Japan is also one of the top buyers of Russia’s ESPO and Sokol crude.

The deals included Russian state-owned oil giant Rosneft and a consortium of Japanese companies comprising Marubeni Corporation, Japan Oil, Gas and Metals National Corporation (JOGMEC) and INPEX Corp. signing a Heads of Agreement for joint exploration, development and production offshore Russia, according to Rosneft.

Related: U.S. Shale Is Now Cash Flow Neutral

“This enables the company to monetize its stakes in promising projects and accelerate their development. Engaging strategic partners, leaders of the global oil and gas industry, in Russian offshore projects will also ensure effective hydrocarbon exploration and production and allow sharing the geological risks between the parties,” the company said.

“In the event that hydrocarbons are discovered as a result of exploration in the area, which is in close proximity to Japan, the three Japanese companies expect that the project will promote energy security in Japan through the resultant benefits of greater diversity of the country’s energy sources and a short transportation distance,” the Japanese companies said.

Other key areas of potential cooperation include attracting Japanese investors to the construction of the second LNG plant in Skhalin, Far Eastern LNG, exploring the possibility of an “energy bridge” between Russia and Japan, and laying a Sakhalin-Hokkaido gas pipeline.

(Click to enlarge)

The Kuril Islands off the coasts of Russia and Japan

“The implementation of these large-scale projects will supply Japanese consumers with additional LNG and power at affordable prices and at the shortest distances,” Putin said.

Related: Why Oil Markets Don’t Have To Worry About Libya

Russia and Japan create $1 billion investment fund for economic development

To help finance the deals made between Russia and Japan last weekend, The Russian Direct Investment Fund (RDIF) and Japan Bank for International Cooperation (JBIC) signed a memorandum of understanding (MoU) to establish a Russia-Japan Investment Fund (RJIF). Under the MoU, RDIF and JBIC have agreed that each of them will invest $500 million for the joint investments through RJIF and a joint investment framework, according to a press release from RDIF.

JBIC also signed a MoU with state-owned gas giant Gazprom on general cooperation principles in financing joint projects with Japanese companies, and opened a €200 million ($209.4 million) credit line for Russia’s next LNG plant, Novatek’s Yamal LNG in the Arctic scheduled for a 2017 launch, reports Platts.

By Oil & Gas 360

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Russian Jew on December 21 2016 said:
    Isn't Russia totally isolated? I didn't get it.

Leave a comment

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