Russia: Arctic Offshore Oil Feasible at $130/bbl
The head of Russia's Rosnedra subsoil agency said on Tuesday that the development of the Pobeda (Victory) offshore Arctic oilfield in the Kara Sea is feasible only at oil prices of $130 to $140 per barrel, Interfax news agency reported.Rosneft, the world's top listed oil firm by output, drilled a first exploration well in 2014 in the Kara Sea, which is part of the Arctic Ocean, with a rig provided by U.S. partner Exxon Mobil Corp.Exxon Mobil has pulled out from the project due to U.S. sanctions imposed over Moscow's annexation of Ukraine's Crimea Peninsula in 2014 and its support for pro-Russian armed separatists in eastern Ukraine.
Exxon CEO back in Russia after Two-year Hiatus
Exxon Mobil Chief Executive Rex Tillerson is to attend a major investment forum in Russia this week, two industry sources said, ending a two year absence from the event that began when sanctions were imposed on Russia over the crisis in Ukraine. Tillerson is due to attend a session at the St. Petersburg International Economic Forum where Igor Sechin, head of Russian state oil firm Rosneft, is listed as keynote speaker. Both Rosneft and Sechin are subject to Western sanctions. A spokesman for Exxon Mobil declined to comment on whether Tillerson would be at the June 16-18 forum, which will also be attended by Russian President Vladimir Putin.
Russia Plans Fuel Shipments to Syria from Crimea
Russia plans to supply Syria with 200,000 tonnes of liquefied petroleum gas (LPG) per year via the Crimean port of Kerch, two trading sources told Reuters. The plans are a further sign of cooperation between the two countries despite hopes in the West that Russia might stop shielding President Bashar al-Assad from pressure to step aside. Moscow had been shipping significantly lower volumes of LPG to Syria via Kerch before Russia annexed the Crimea peninsula from Ukraine in March 2014. The United States and the European Union, which say the seizure of Crimea violates international law…
Iran Nuclear Deal Close; Impasse Over Weapons, Missiles Persists
Iran and six world powers were close to an historic nuclear agreement on Thursday that could resolve a more than 12-year dispute over Tehran's nuclear ambitions, but they remained deadlocked on the issue of Iranian arms and missile trade. Over the past two weeks, Iran, the United States, Britain, France, Germany, Russia and China have twice extended a deadline for completing a long-term deal under which Tehran would curb sensitive nuclear activities for more than a decade in exchange for sanctions relief. Russian Deputy Foreign Minister Sergei Ryabkov said on Thursday he could not rule out that there would be an agreement in the coming hours.
Setback for Finnish Plan to Build Russian-Designed Reactor
Finland's plans to build a Russian-designed nuclear reactor faltered on Wednesday when Finnish utility Fortum voiced doubt about taking a stake vital to win Helsinki's approval for the $6.71 billion project. Parliament has approved the plan to build a 1,200-megawatt (MW) reactor supplied by Russia's state-owned Rosatom, provided that Finnish or European Union investors own at least 60 percent of it. Rosatom has 34 percent. Fortum agreed last December to take a 15 percent stake in the project, helping to reach the 60 percent threshold, but on Wednesday said it was not certain about taking the stake as its talks with Russian partners had stalled.
Ukraine Denies Radioactive Leak on Zaporizhzhya Nuclear Plant
Ukrainian authorities denied on Tuesday a report in pro-Kremlin media that a radioactive leak had taken place at the Zaporizhzhya nuclear plant, Europe's largest. Life News newswire published documents which it said came from Ukraine's emergencies ministry and showed that a leak at the power plant had led to a spike in radiation over the past two days exceeding permitted norms by 16 times. Three officials from Ukraine's emergencies ministry, energy ministry and the plant itself told Reuters there had been no leak. "The plant works normally, there have been no accidents," said an energy ministry official.
Ukraine to Prepay for Russian Gas Today or Tomorrow
Ukraine will make a prepayment for 1 billion cubic metres of Russian gas on Wednesday or Thursday, Ukrainian Energy Minister Volodymyr Demchyshyn said, as the deepening winter forces the country to rely for energy on its powerful neighbour. Russia, which cut off supplies to Ukraine in June because of a standoff over prices, has insisted that Ukraine pay for supplies in advance. So far, Kiev has not committed to new orders as a separatist conflict weighs on its flagging economy. However, increasingly cold weather is forcing the country to turn to Russia as it draws down its severely depleted reserves. "The prepayment will take place today or tomorrow, I hope today ...
Ukraine Must Buy Coal From Russia to Get Through Winter
Ukraine will be forced to buy coal from Russia to get through the winter, a serious setback to the country's efforts to lessen energy dependence on its powerful neighbour, Ukrainian Energy Minister Yuri Prodan said on Wednesday. Conflict between pro-Russian rebels and Ukrainian forces in Ukraine's industrial east has disrupted coal supplies to thermal power plants (TPP), which provide around 40 percent of the country's electricity, and has left reserves critically low ahead of the cold winter months. "We have no other option but to turn to the Russian producers and try to buy coal there…
Russia Inks Deals with China
Russia and China signed energy, finance and trade deals on Monday hailed by Moscow as evidence a policy turn towards Asia will help it weather Western sanctions imposed over the Ukraine crisis. The agreements, signed during a visit to Moscow by Chinese Premier Li Keqiang, built on moves by President Vladimir Putin to look east for business and financing that are now out of bounds in the United States and the European Union. "I consider it important that, in spite of the difficult situation, we are opening up new possibilities," Russian Prime Minister Dmitry Medvedev said after 38 agreements were signed.
Putin Says Many European Leaders Want to End Sanctions Standoff
Russian President Vladimir Putin on Thursday said he believed many European leaders were eager to end the standoff over sanctions with Russia. "I think that many in Europe including the politicians, my colleagues, ... (want) to get out as soon as possible of a situation, which is damaging our cooperation," Putin said during a visit to the Crimea peninsula, which Russia annexed from Ukraine earlier this year. He added that he had recently spoken to his French counterpart Francois Hollande and felt this also reflected the French president's mood.
Russia, Ukraine Examine Gas Plan To Avoid Winter Supply Crisis
Russia and Ukraine agreed on Monday to examine a payment plan to settle Kiev's multi-billion gas debts and fix a price for supplies until June 2015, offering the promise of averting an energy crisis over the crucial winter period. The argument over prices for natural gas has added to tensions as the two countries have squared off over Moscow's seizure of Ukraine's Crimea peninsula and over a pro-Russian rebel uprising in eastern Ukraine. Russia's Gazprom had been threatening to cut off Ukraine's gas on Tuesday, with potential knock-on effects for the European Union because much of the gas it receives from Russia is pumped via Ukraine.
Glencore Will Pre-Pay Ruspetro for Crude
Unfazed by the threat of further Western sanctions on Russia, commodity trader and mining company Glencore has agreed to sign a new pre-payment deal with Ruspetro, a Russian oil and gas company operating in western Siberia. Energo Resurs, a subsidiary of London-listed Glencore, has agreed to pre-pay about 750 million roubles ($21.80 million) to Ruspetro which in return is expected to supply about 1,680 barrels a day of crude for a year, Ruspetro said in a statement. Glencore has signed similar pre-payment facilities with Ruspetro in the past.
White House Urges Dialogue, Not Intimidation In China Rig Dispute
The White House said on Wednesday that a dispute between China and Vietnam that erupted within days of President Barack Obama's visit to Asia to address regional tensions needs to be resolved with dialogue, not intimidation. While the United States was not a party to the dispute, White House spokesman Jay Carney said Obama had repeatedly stressed on his trip last month the need for peaceful dialogue on various disputes involving China and the South China Sea. The renewed tension between Vietnam and China underscores one of the biggest challenges in Asia facing Obama…
Transneft Worried Ukraine Will Take its Hungary Pipeline
Russia's oil pipeline monopoly Transneft said it was worried Ukraine may take control of its oil product pipeline to Hungary. A row over ownership of the pipeline has flared amid the deepest East-West rift since the end of the Cold War, over Russia's annexation of Ukraine's Crimea peninsula last month. Transneft said in a statement on its website Ukraine's courts have been considering a claim by the general prosecutor's office to transfer control over the pipeline, which shipped some 1.7 million tonnes (over 30,000 barrels per day) of oil products last year, to the state.
Putin Wants Beefed-up Presence in the Arctic
Russian President Vladimir Putin said on Tuesday that Russia should step up its presence in the Arctic and challenge other nations in exploring the world's largest untapped natural reserves, days after it started shipping its first oil from the region. Russia's ambitions in the Arctic have for some time been raising eyebrows among other states vying for a presence there, but the Kremlin's annexation of Ukraine's Crimea Peninsula is likely to put its Arctic plans under greater scrutiny. Russia has staked its future economic growth on developing the Arctic's vast energy resources and reviving a Soviet-era shipping route through the ice.
Polish PM Calls For EU Energy Union To End Dependence On Russian Gas
The European Union must create an energy union to secure its gas supply because the current dependence on Russian energy makes Europe weak, Poland's Prime Minister Donald Tusk wrote in an article in the Financial Times. Russia, which provides around one third of the EU's oil and gas, sent shockwaves through the international community with its military intervention and annexation of Ukraine's Crimea peninsula in March. The action prompted the United States and its European allies to begin imposing sanctions on President Vladimir Putin's inner circle and to threaten to penalise key sectors of Russia's economy if Russia escalates tensions with Ukraine.
Putin Welcomes New NATO Head
Russian President Vladimir Putin welcomed NATO's selection of former Norwegian Prime Minister Jens Stoltenberg as its new head, saying on Saturday the pair had "very good relations" but that it was up to the West to improve ties. Relations between Russia and the NATO military alliance are at their worst since the Cold War following Russia's seizure of Ukraine's Crimea peninsula, a move Putin said on Thursday was partly influenced by NATO's expansion into eastern Europe. In an interview with the state-run Rossiya television station, to be broadcast later on Saturday, Putin indicated that the appointment of Stoltenberg, who takes over in October, could help ties.
Russian Gas Trader Billionaire: U.S. Sanctions an "Honor"
Gennady Timchenko, the billionaire Russian gas trader hit with U.S. sanctions over his alleged ties with the Kremlin following Russia's annexation of Crimea, said being singled out by Washington was a badge of honour. But Timchenko, who sold his stake in oil trading firm Gunvor last month, acknowledged that the sanctions were slightly inconveniencing his business interests because some European banks were reluctant to deal with him. "The fact that I was included in the list (of people subject to U.S. sanctions) was a little surprising maybe…
Ukraine, Russia Continue to Haggle Over Gas
Ukraine's state-run energy company Naftogaz has suspended gas payments to Russia until the conclusion of price talks, chief executive Andriy Kobolev was quoted as saying on Saturday. Russia, which last month angered Western powers by annexing Ukraine's Crimea peninsula, has raised the price it charges Kiev for gas and said it owes Moscow $2.2 billion in unpaid bills. It also says Kiev had failed to pay its bill on time. Russian gas giant Gazprom earlier this month increased gas price for Ukrainian consumers to $485 per 1,000 cubic meters (tcm) from $268 for the first quarter, saying Kiev was no longer eligible for previous discounts.
Hints Of Possible Deal On Ukraine Gas Emerge At G20
emerged at a meeting of G20 finance chiefs this week that a deal in which Moscow eases its stance might be in the works. sidelines. for gas and said it awaits $2.2 billion in unpaid bills. Ukraine if payments don't start coming, but between the now-standard lines he signalled some room for maneuver. "We do not want to escalate tensions with Ukraine. journalists when asked about the gas dispute. "But it requires a decision of the Ukrainian authorities, support of the European Union colleagues. down and discuss this issue. States were bearing fruit. U.S. international efforts to ensure a free flow of energy and trade. territory.
