• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 27 mins https://www.prageru.com/video/whats-wrong-with-wind-and-solar/
  • 17 hours Here it is, the actual Complaint filed by Dominion Voting Machines against Sydney Powell
  • 2 days Pollster Frank Luntz released a poll today showing 90% of those that voted for Trump in November would vote for him again.
  • 10 hours Tonight Twitter took down Trump's personal account permanently. Trump responded on the POTUS account.
  • 2 days Do Republicans like Liz Cheney, Adam Kinzinger, Mitt Romney and now McConnell think voting for Impeachment can save the party ? Without Trump base what is the Republican constituency ? It's over.
  • 15 hours CNN's Jake Tapper questions double amputee purple heart recipient GOP Rep's commitment to democracy. Tapper is a disgrace.
  • 2 days ICE Engines Hear to Stay Regardless of War Against
  • 16 hours A Message from President Donald J. Trump - 5 minutes from The White House directly
  • 19 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 2 days Minerals, Mining and Industrial Ecology
  • 2 days a In 2020, we produced and delivered half a million cars.
  • 2 days Trump Supporters Just Handed a Huge Propaganda Victory to China
OPEC+ Compliance With Production Cuts Slips To 75%

OPEC+ Compliance With Production Cuts Slips To 75%

OPEC+ group’s compliance with the…

The World’s Next Giant Oil Discovery Could Be Here

The World’s Next Giant Oil Discovery Could Be Here

A genius geochemist has stumbled…

Russia Considers Letting Chinese Buy Controlling Stakes In Energy Fields

Russia has reversed its long-held opposition to selling foreign investors majority stakes in its strategic oil and gas fields, saying there would now be “no political obstacles” to allowing Chinese stockholders to hold more than 50 percent of the properties.

In the past, Moscow has formed alliances with some companies in the West to obtain the knowledge and technology it needs to tap sources of oil and gas that are difficult to reach using conventional drilling. Still, it was careful to maintain financial control all its energy fields, which make up the core of the Russian economy.

Now, though, Western cooperation has evaporated because of the sanctions imposed on Russia by the European Union, the United States and Canada over Moscow's role in the fighting in neighboring Ukraine. As a result, Deputy Prime Minister Arkady Dvorkovich said Feb. 27 that the Kremlin is open to deeper Chinese investment in its energy.

Related: Russia Is Not Bluffing With Turkish Stream Project

“If there is a request from China [for a majority stake in a strategic energy field], we will seriously consider it,” Dvorkovich told the Krasnoyarsk Economic Forum in Siberia. He said the only exception would be fields on the Arctic continental shelf.

“We have a strategic partnership with China, and now decisions are made much faster than before,” Dvorkovich told the conference. He pointed to Moscow’s $400 billion deal with Beijing last year to supply China with 38 billion cubic meters of gas annually, and a subsequent deal for Russia to sell China up to 30 billion cubic meters in additional gas over 30 years.

“In particular, we have a gas contract [for China to buy Russian gas], a second one will be signed soon,” Dvorkovich said. “Now we know China better: Their motives and intentions are understood. There used to be a psychological barrier. Now it doesn’t exist anymore. We are interested in maximizing investments in new industries. China is an obvious investor for us.”

Europe, which receives nearly one-third of its gas from Russia, has been looking for alternative sources of energy, with some success. As a result, Russia is looking to shift its own reliance on European customers and has focused on the East, as the two gas deals with China illustrate.

Nevertheless, other Asian nations are wary of providing financing for Russian banks and other commercial enterprises because the Western sanctions have limited Russia’s access to Western capital.

Related: Is The EU Finally Breaking Free Of Russia’s Energy Grip?

Dvorkovich’s comments evidently were encouraging to China’s oil sector. Until now, because of restrictions by the Kremlin, two leading Chinese energy companies, the Chinese National Petroleum Corp. (CNPC) and the Sinopec Group, have been forced to limit their investments to small projects involving developing energy fields.

“Putin is currently in a tough situation,” a leading official in China’s oil industry told Reuters on condition of anonymity. “We all know this. One of the ways to help him get out of the mess is trying to improve ties with China.” The official is knowledgeable about CNPC’s strategy and the energy cooperation between the two countries.

So far, this Chinese official said, Putin has made it “very difficult” for CNPC to work with Russian companies to develop energy fields. “We have tried numerous times before, to no avail,” this official said. “Now the situation has changed, the chance of doing that is higher.”

By Andy Tully of 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