QIA fund becomes strategic partner of ROSNEFT

HomeBusiness News Qatari fund becomes strategic partner of Russia’s Rosneft Published time: 7 May, 2018 11:47 Get short URL Qatari fund becomes strategic partner of Russia’s Rosneft Buildings are seen on a coast line in Doha, Qatar © Naseem Zeitoon / Reuters An agreement which provides for the acquisition of an 18.93 percent stake in Russian oil giant Rosneft by Qatar sovereign fund (QIA) is strategic, according to company spokesman Mikhail Leontyev. He told RIA Novosti that QIA will become a major shareholder in Rosneft, along with the British oil company BP. Under the deal which was announced Friday, QIA will own 18.93 percent of Rosneft, becoming the third-largest shareholder after the Russian state, which holds 50 percent and, BP with 19.75 percent. “A very strategically important deal took place... Qatar, represented by the QIA fund, becomes the direct shareholder and strategic partner for Rosneft,” Leontyev said, adding that the Russian company is satisfied with the decision. Read more © Nikolay KorchekovRussia targets strategic Chinese energy market “This is a completely different level of relations and cooperation. The market will see a range of bilateral international projects that we are going to develop together…” He explained that from the investment point of view, QIA is a very good partner with “obvious resources.” In 2016, the consortium of QIA and the Swiss commodity trader Glencore bought a 19.5 percent stake in Rosneft. Later, they announced the sale of 14.16 percent of the shares in that stake to the Chinese energy company CEFC. The value of the transaction was estimated at $9.1 billion. On Friday, the agreement with CEFC has been terminated, with the stake intended for sale to the Chinese firm to be transferred to a subsidiary of QIA. The companies have also announced dissolving the consortium. Glencore will receive €3.7 billion as a result of the transaction and keep the 0.57 percent stake in Rosneft. According to Leontyev, Glencore has successfully completed its participation in the transaction and, as a trader, it has other tasks.

Forget Sanctions: Exxon Would Like Access to Russian Oil Anyway

Robbie Gramer and Emily Tamkin Foreign Policy MagazineApril 20, 2017 Because Russia just doesn’t loom large enough already in Washington. More With the simple submission of a technical sanctions waiver, oil giant Exxon Mobil created a potential PR headache for the White House. On Wednesday, the Wall Street Journal reported Exxon is seeking a greenlight from the U.S. government to bypass sanctions on Russia and resume doing business with the country’s state-owned oil giant Rosneft. It’s hard to imagine how the optics could be worse. One of the biggest of the many scandals plaguing Trump’s White House is the FBI investigation into whether his campaign coordinated with Russian intelligence to tip the election in his favor. An unverified dossier alleges that Rosneft may have played a role in the Russian election meddling. And Secretary of State Rex Tillerson happens to be the former Exxon CEO — who before becoming America’s top diplomat had lobbied the Obama administration to ease sanctions that hamstrung Exxon’s business in Russia. The State Department is one of several government agencies that will oversee Exxon’s waiver application, though a State Department spokesman told the Wall Street Journal Tillerson (who received the Russian Order of Friendship in 2013) is recusing himself from any decisions relating to Exxon for two years. The sanctions were put in place in 2014, after Russia annexed Crimea. The sanctions prevent U.S. companies from dealings with Rosneft involving technology transfer, and also target Rosneft chief — and Putin confidant — Igor Sechin. Under Tillerson’s leadership, Exxon paid hundreds of thousands of dollars to lobbying groups to argue against U.S. sanctions and he personally met with senior Obama White House officials a dozen times to discuss sanctions on Russia (though he assured Congressional leaders at his confirmation hearing in January he “never lobbied against sanctions personally” and “to [his] knowledge, Exxon never directly lobbied against sanctions.”) Exxon figures the sanctions, which have forestalled exploration in places like the Russian Arctic, cost it at least $1 billion. Exxon is apparently trying to get U.S. permission to drill in the Russian Black Sea; if it doesn’t drill an exploratory well this year, it could lose the concession. But existing sanctions aside, Exxon’s efforts now to get access to deepwater, offshore oil fields is a little curious given the big global oil supply glut and still-cheap prices. Deepwater projects, like the one Exxon is trying to get going, generally need oil prices closer to $70 a barrel to be economic; crude oil has spent months in the $50 a barrel range. (Exxon’s other sanctions-stalled project with Rosneft, in the chilly Kara Sea, would be an even dicier proposition at these prices.) But under the terms of its agreement with Rosneft, Exxon’s Black Sea play could expire if it doesn’t act soon, so it presumably wants to keep the proverbial pilot light on so they’re ready to pounce when prices rebound. Another reason could be sheer competitive pressure. The European Union is granting sanctions waivers to its own companies, including Italian oil company Eni, to explore cooperation with Russia in the Black and Barents Seas, even while the sanctions freeze out U.S. firms. “Exxon is worried it could get boxed out of the Black Sea by the Italians,” one person briefed on the Exxon waiver told the Journal. Photo credit: ALEXEY DRUZHININ/AFP/Getty Images

Exxon CEO is now Trump's secretary of state favorite -transition official

Fri Dec 9, 2016 | 10:08 PM EST ExxonMobil Chairman and CEO Rex Tillerson speaks during the IHS CERA Week 2015 energy conference in Houston, Texas April 21, 2015. REUTERS/Daniel Kramer/File Photo ExxonMobil Chairman and CEO Rex Tillerson speaks during the IHS CERA Week 2015 energy conference in Houston, Texas April 21, 2015. Reuters/Daniel Kramer/File Photo Exxon CEO is now Trump's secretary of state favori...X By Steve Holland | GRAND RAPIDS, Mich. Exxon Mobil Corp Chief Executive Officer Rex Tillerson emerged on Friday as President-elect Donald Trump's leading candidate for U.S. secretary of state, a senior transition official said. Trump met Tillerson on Tuesday and may talk to him again over the weekend, the official said. Trump appears to be in the final days of deliberations over his top diplomat with an announcement possible next week. Tillerson's favored status was revealed as former New York Mayor Rudy Giuliani formally withdrew from consideration for secretary of state. The transition official, who spoke on condition of anonymity, said Tillerson, 64, had moved ahead in Trump's deliberations over 2012 Republican presidential nominee Mitt Romney, who has met Trump twice, including at a dinner in New York. But the official said Romney was still under consideration for the job, along with John Bolton, a former U.S. ambassador to the United Nations; U.S. Senator Bob Corker of Tennessee, and retired Navy Admiral James Stavridis. Giuliani's withdrawal came after he was fully vetted by the Trump transition team for his overseas business ties in what was described by the Trump official as an "intense" effort by lawyers and accountants. Giuliani, who runs a global consulting firm, was given a clean bill of health, with Trump's aides concluding his business interests would not pose a risk to his confirmation. Should Tillerson be nominated, his business ties, too, will come under scrutiny. Exxon Mobil has operations in more than 50 countries and boasts that it explores for oil and natural gas on six continents. In 2011, Exxon Mobil signed a deal with Rosneft, Russia's largest state-owned oil company, for joint oil exploration and production. Since then, the companies have formed 10 joint ventures for projects in Russia. In 2013, Russian President Vladimir Putin awarded Tillerson his nation's Order of Friendship. But U.S. sanctions against Russia for its incursion into Crimea cost Exxon Mobil dearly, forcing it to scrap some projects and costing it at least $1 billion in losses. Tillerson has been a vocal critic of the sanctions. Trump has spoken of wanting warmer relations with Moscow, which has sparked concerns in Congress that he could lift or loosen some of the sanctions on Russia. Tillerson has been chairman and CEO of Exxon Mobil since 2006. He is expected to retire from the company next year. Should Tillerson be nominated, climate change could be another divisive issue. The company is under investigation by the New York Attorney General's Office for allegedly misleading investors, regulators and the public on what it knew about global warming. (Reporting by Steve Holland and James Oliphant; Editing by Leslie Adler and Lisa Shumaker)

Iran unveils upgraded model for oil contracts

Associated Press Ali Akbar Dareini, Associated Press Iran's Oil Minister Bijan Zanganeh, center, Managing Director of National Iranian Oil Company, Roknoddin Javadi, right, head of parliament's energy committee Ali Marvi, left, and participants listen to Iran's national anthem during opening ceremony of Iran Petroleum Contracts Conference in Tehran, Iran, Saturday, Nov. 28, 2015. Iran has unveiled a new model of oil contracts aimed at attracting foreign investment once sanctions are lifted under a landmark nuclear deal reached earlier this year. (AP Photo/Vahid Salemi) syndication.ap.org Iran's Oil Minister Bijan Zanganeh, center, Managing Director of National Iranian Oil Company, Roknoddin Javadi, right, head of parliament's energy committee Ali Marvi, left, and participants listen to Iran's national anthem during opening ceremony of Iran Petroleum Contracts Conference in Tehran, Iran, Saturday, Nov. 28, 2015. Iran has unveiled a new model of oil contracts aimed at attracting foreign investment once sanctions are lifted under a landmark nuclear deal reached earlier this year. (AP Photo/Vahid Salemi) TEHRAN, Iran (AP) — Iran unveiled a new model of oil contracts Saturday aimed at attracting foreign investment once sanctions are lifted under a landmark nuclear deal reached earlier this year, and said U.S. companies would be welcome to participate. The new Iran Petroleum Contract replaces a previous buyback model, in which contractors paid to develop and operate an oil field before turning it over to Iranian authorities. Iran has sweetened the terms, hoping to bring in $30 billion in new investment. The new contracts last 15-20 years and allow for the full recovery of costs. The older contracts were shorter term, and investors complained of heavy risks and suffering losses. Investors who produced more than planned amounts received no compensation for the additional barrels. But under the new model, the more they produce, the more they will earn. Foreign investors will also have an option to extend contracts an additional five years, up to 25 years. Some 50 upstream oil, gas and petrochemical projects are being introduced during a two-day conference in Tehran that began Saturday. Iran will pay foreign oil companies larger fees under the new contracts to provide greater incentives to investors. Oil Minister Bijan Namdar Zanganeh told the conference that under the new contracts, foreign investors will be required to form a joint company with an Iranian partner to carry out exploration, development and production operations. "To continue to play the role (as a major oil supplier), we hope to enjoy working with reputable international oil companies under a win-win situation," he told the conference. Zanganeh welcomed U.S. investment in Iran's energy sector. "We have no objection to and problem with the participation of American companies. The way for the presence of these companies in Iran's oil industry is open," he said. Mahdi Hosseini, a senior official in charge of the new contracts, told the conference that the new model is an attempt to repair Iran's relations with the industrialized world. Iran is hoping to attract over $150 billion in foreign investment in five years to rebuild its energy industry. Iranian hardliners, however, condemned the new contracts as "unconstitutional", saying they will open the way for "infiltration" of the energy sector by Iran's enemies. "Zanganeh today unveiled contracts that effectively transfers the rights of exploration, extraction, exploitation and sale Iran's oil to foreign companies for 25 years," the conservative news website, rejanews.com, said. International sanctions on Iran's oil industry were tightened in 2012 over its controversial nuclear program. Western nations have long suspected Iran of secretly pursuing nuclear weapons, charges denied by Tehran, which insists the program is entirely peaceful. Under the agreement reached in July with the U.S., Britain, France, Germany, Russia and China, Iran will curb its nuclear activities in exchange for the lifting of sanctions. Oil Ministry officials said 137 foreign companies attended Saturday's conference, including Repsol, BP, Royal Dutch Shell, Total, Technip, Schlumberger, Eni, Enel, Rosneft, Lukoil, Gazprom, Inpex, Statoil and Daewoo. Iran, an OPEC member, currently exports 1.1 million barrels of crude oil per day and hopes to get back to its pre-sanctions level of 2.2 million, last reached in 2012. Iran's total production now stands at 3.1 million barrels per day. Iran is hoping to boost oil production to 5.7 million barrels a day by 2021. Zanganeh said last week that Iran will export an additional 500,000 barrels of oil a day after sanctions are lifted — likely in early 2016 — to reclaim its market share despite low prices. Iran plans to begin exporting an additional 500,000 barrels of oil a day six months later in order to double its crude exports. ======================= Fri Nov 20, 2015 | 9:56 AM EST India's Petronet near to winning better gas terms from Qatar-sources India's Petronet near to winning better gas terms...X By Oleg Vukmanovic and Nidhi Verma MILAN/NEW DELHI Nov 20 (Reuters) - India's biggest gas importer Petronet LNG is close to renegotiating a major deal with its Qatari supplier Rasgas, lowering the cost of gas shipments and avoiding a $1.5 billion penalty fee for lifting less gas than agreed, two sources said. The renegotiation is another sign of how falling oil prices and a global gas glut are bringing producing giants such as Qatar to the negotiating table. Petronet, which has a 25-year contract with Rasgas to annually buy 7.5 million tonnes of liquefied natural gas (LNG) has reduced purchases by about a third this year due to high prices -- even though it is only allowed to take 10 percent less, making it liable for a $1.5 billion penalty. Petronet and Rasgas opened renegotiation proceedings during Qatari Emir Sheikh Tamim bin Hamad Al-Thani's visit to New Delhi in March. If India manages to renegotiate a deal with Qatar it would be Prime Minister Narendra Modi's biggest diplomatic win in the energy sector since coming to power last year. Indian oil minister Dharmendra Pradhan reinforced the need to renegotiate prices and quantity under the long term deal with Qatar during his visit to Doha this month. According to the sources the two firms are exploring the possibility of altering the contract's pricing formula, in which the LNG is valued based on a 60-month average of a basket of Japanese crude oil prices. Instead, a 3-month average of Brent crude is being considered, which would be a major coup for Petronet by lowering its LNG costs in line with sharply lower crude oil prices. Petronet currently pays about $12-$13 per million British thermal units (mmBtu) for Qatari LNG under a deal that began in 2004, compared with around $7-$8 per mmBtu for LNG in the spot market. Petronet has been increasingly substituting costly Qatari LNG with spot shipments. But the proposed revision should allow it to step up Qatari imports as prices fall. Under the new deal, Rasgas will also grant relief to Petronet from paying a $1.5 billion penalty on the condition that the Indian firm lifts full volumes in subsequent years, said one of the sources. Rasgas was not immediately available for comment, while Petronet LNG's head of finance R. K. Garg did not respond to a request for comment. (Editing by William Hardy)

OPEC no longer oil market key regulator, US is - Rosneft CEO

More than $500bn by 2035 in Russia-China energy deals - Rosneft CEO The main role in regulating the oil market has transferred from the Saudi Arabia-dominated OPEC cartel to the US, says Rosneft CEO Igor Sechin. Shale deposits are not the only factor, he added. According to Sechin, besides shale, the US has “all the factors influencing the development of a competitive oil market.” This means financial resources, financial derivatives, stock exchanges, a developed system of pipelines and a large number of contractors working in the country, he said at the Russia Calling forum in Moscow on Tuesday. READ MORE: OPEC says join the club, Russia not interested – Rosneft CEO "So, the medium-term prospects for the world oil market will be determined by the market in the US,” Sechin added. As for Saudi Arabia, Sechin says it’s been actively dumping and cutting prices. "In terms of competition, we are seeing now that Saudi Arabia has even come on the Polish market, where it has never been; it’s supplying raw materials through Gdansk. Actively dumping,” he said. "The struggle for market share is one of the factors affecting oil prices. This is reflected in the budget revenues,” Sechin added. He also said that production costs for Russian oil companies are the lowest in the world - $4 per barrel. At Rosneft the figure is even lower - $2.80, which is the best in the world, according to Sechin. Rosneft has turned to a one-year budget instead of a conventional three-year one due to global economic uncertainty. However, the situation is stable, “we have a liquidity reserve that allows our current activities,” the CEO concluded.

Rosneft scraps purchase of Morgan Stanley's oil trading business

BP's Rosneft stake exposed for what it is Turmoil in Russia will hurt BP’s accounts via its 20 percent stake in Rosneft, at least on paper. But in cash terms, the impact looks manageable. This is a financial holding which provides BP with limited dividend income. Any strategic value looks very long term at best. * Rosneft makes loan payment, calls off Morgan Stanley deal MOUNTING PROBLEMS Mounting evidence suggested that Russia's economic pain and isolation were starting to bite. The country announced plans to impose a heavy tax on grain exports since rouble volatility and high global prices have caused exports to spike: Russian news agencies reported Prime Minister Dmitry Medvedev told a meeting with officials that the country needed to hang on to its stocks. And Russia's central bank said it would have to bail out mid-sized Trust Bank with 30 billion roubles ($540 million) to stop it going bankrupt. Trust held 145 billion roubles ($2.63 billion) in private personal deposits as of Dec. 1, according to its accounts The country's largest lender Sberbank was forced to deny a report from RIA news agency that it had suspended taking new requests for auto loans and mortgages. Though Russia's biggest oil firm Rosneft partially eased some worries by saying it had made a $7 billion debt repayment from its own cash reserves -- investors had been concerned it could default because the sanctions cut off its access to Western finance -- it announced separately that a deal to acquire an oil trading business from Morgan Stanley had been terminated due to a refusal by regulators in the United States to clear it. The termination of the deal is another blow for Rosneft after its partners including ExxonMobil withdrew from projects to develop Arctic offshore oil deposits after the sanctions were introduced. Kudrin forecast a series of defaults among both medium and large companies -- though he said banks would probably be supported by the state -- which was likely to result in rating agencies downgrading Russia's debt to "junk" status. Most agencies have put Russia this year one notch above junk status. "Russia will get a downgrade," Kudrin said. "It will enter the 'junk' territory." == WRAPUP 1-Ex-minister Kudrin warns of "full-fledged crisis" in Russia Mon, Dec 22 10:51 AM EST (Adds Putin in talks, Reuters poll, Sberbank denial, Rosneft calling off Morgan Stanley purchase) * Kudrin: Russia didn't tackle problems fast enough * Russia to be downgraded to 'junk' status next year * Putin to talk to Western leaders on Ukraine * Government announces tax on grain exports * Central bank moves to shore up Trust Bank * Rosneft makes loan payment, calls off Morgan Stanley deal * Sees 2015 inflation at 12-15 per cent By Darya Korsunskaya, Lidia Kelly and Katya Golubkova MOSCOW, Dec 22 (Reuters) - Russia's government has pushed the country into an economic crisis by not tackling its financial problems fast enough, former finance minister Alexei Kudrin said on Monday, as evidence mounted of trouble spreading through the economy. As he spoke President Vladimir Putin prepared to hold emergency talks with Western leaders to try to resolve the stand-off over Ukraine, the central bank bailed out its first victim of the collapsing currency and authorities announced a tax on grain exports to protect domestic stocks. A Reuters poll of 11 economists predicted that Russia's gross domestic product would fall 3.6 percent next year, after only 0.5 percent growth this year. Russia has been hit by what Economy Minister Alexei Ulyukayev recently called a "perfect storm" of plummeting oil prices, sanctions related to its military action in Ukraine, and a flight of investors' capital -- made worse by a lack of structural reforms that means the economy is overwhelmingly dependent on oil revenues.. Government officials have tried to minimise the impact of sanctions on the country and its rouble currency, which plunged 80 percent against the dollar last week despite a hike in interest rates to 17 percent. Putin has claimed "external factors" like oil were the key culprit behind the country's "tough times". But Kudrin -- a darling of investors who is credited with building Russia's $170 billion sovereign wealth funds -- asserted that sanctions over Ukraine, not falling oil prices, were primarily behind the collapse of the rouble, and warned that Russia risked having its debt downgraded to junk status in 2015. "Today, I can say that we have entered or are entering a real, full-fledged economic crisis. Next year we will feel it clearly," the former minister told a news conference. "The government has not been quick enough to address the situation ... I am yet to hear ... its clear assessment of the current situation." Kudrin, one of few to criticise President Vladimir Putin, quit in 2011 in protest at proposals to increase defence spending, though the two men are still believed to be close. He has also criticised Putin's response to Western sanctions imposed following Russia's annexation of Ukraine's Crimea region and its subsequent support for loyalist fighters. The Kremlin's foreign policy adviser said Putin would hold phone talks with the leaders of France, Germany and Ukraine on Monday that would "focus on the current crisis situation and prospects for the next meeting of the contact group." MISTRUST The rouble firmed against the dollar on Monday, with exporters responding to Putin's urge to sell their foreign currency revenues on the market, and Brent crude prices stood close to $60 a barrel. While the currency, down some 45 percent against the dollar so far this year, may stabilise in the first quarter of next year, its decline will likely help to push inflation to a rate of 12-15 percent in 2015, Kudrin said. The central bank envisages next year's inflation at around 8 percent. Economists polled by Reuters see it at 9.2 percent. Kudrin said he believed that between 25 and 35 percent of the decline in the rouble could be attributed to sanctions. The rest, he said, was down to a stronger dollar and investors' mistrust of Russian authorities and their actions. His outlook for the economy next year was bleak: Even if the price of oil rose to $80 per barrel, gross domestic product was still likely to fall by more than 2 percent in 2015, Kudrin said. At $60 per barrel GDP would decline by 4 percent or more, he added, echoing the central bank's latest assessment, published last week. (Additional reporting by Vladimir Soldatkin, Oksana Kobzeva and Polina Devitt; Editing by Sophie Walker) ======== ========= #Iraq; #ISIS also launched another failed attack on Haditha this morning. Iraqi Army detonated a suicide car bomb southwest of the district.  Haidar Sumeri ‏@SumerRising · 38s38 seconds ago #Iraq; the Iraqi Army backed by local tribesmen managed to kill an #ISIS commander (named Abu Abdullah Al-Saddawi) in western Ramadi today.

U.S. hits oil giant Rosneft, other firms with toughest Russia sanctions

U.S. hits oil giant Rosneft, other firms with toughest Russia sanctions Wed, Jul 16 23:13 PM EDT image 1 of 2 By Anna Yukhananov and Steve Holland WASHINGTON (Reuters) - President Barack Obama imposed the biggest package of U.S. economic sanctions yet on Russia on Wednesday, hitting Russia's largest oil producer Rosneft and other energy, financial and defense firms, with what he called significant but targeted penalties. Obama's latest round of sanctions came after close consultations with European leaders, who announced a less-ambitious package. The ultimate impact of the U.S. sanctions likely depends on whether the European Union follows suit. The extent of the sanctions against key parts of the Russian energy and financial industry, including Gazprombank, was intended to serve notice to Moscow that its refusal to curb violence in eastern Ukraine has consequences. The targeted companies also include Russia's second-largest gas producer, Novatek, Vnesheconombank, or VEB, a state-owned bank that acts as payment agent for the Russian government, and eight arms firms. The U.S. Treasury Department said the measures effectively closed medium- and long-term dollar funding to the two banks and energy companies. But the sanctions did not freeze those four companies' assets, or otherwise prohibit U.S. firms or companies from doing business with them. It is the first time the United States has imposed such narrowly targeted measures as it seeks the maximum impact on Russia, a huge energy producer, while avoiding any immediate shock to global oil markets or U.S. and EU companies. Russian President Vladimir Putin, speaking in Brasilia, said the sanctions would damage U.S. energy companies, and bring relations with Russia to a "dead end." One analyst said the sanctions remained limited in their scope and were likely to prompt a "war of words" more than anything else. "I think that the impact on oil sales will be negligible," said sanctions expert Douglas Jacobson, attorney at Jacobson Burton in Washington. "It is another classic shot across the bow and a message from the United States that sanctions can be ramped up." Obama said Putin had so far failed to take steps needed to resolve the crisis peacefully. "We have emphasized our preference to resolve this issue diplomatically, but that we have to see concrete actions and not just words that Russia, in fact, is committed to trying to end this conflict along the Russia- Ukraine border," he said. Washington said on Wednesday that up to 12,000 Russian combat forces were back on the border with Ukraine and that weaponry was crossing over to pro-Russian separatists. The increase in the Russian presence occurred several weeks after Moscow had drawn down its forces in the area to about 1,000 troops. POSSIBLE FURTHER SANCTIONS Obama said the United States could impose further sanctions if Russia did not take concrete steps to ease the conflict. The United States has already imposed several rounds of sanctions on Russian and Ukrainian senior officials since the start of the violence, including Rosneft's chief executive, Igor Sechin. But the sanctions have had only a limited impact on the Russian energy industry, a cornerstone of the country's $2 trillion economy. It is not yet clear how large an impact the new measures will have on Rosneft, which had sales of $40 billion in the first quarter, about 8.6 percent of Russia's gross domestic product, or the companies it does business with. Sechin, who like Putin was speaking in Brasilia, said the sanctions would not affect Rosneft's current project with ExxonMobil, but would damage the shareholders of U.S. companies cooperating with Rosneft. The new sanctions would not appear to prevent Rosneft from selling its oil, but may raise questions about the company’s more than $15 billion worth of oil-related finance arrangements with companies including BP, which now owns almost a fifth of Rosneft, and Glencore. Morgan Stanley, which is selling the majority of its global physical oil trading operations to Rosneft, declined to comment. The sanctions stopped short of targeting Russia's Gazprom, the world's largest natural gas producer and provider of much of Europe's energy supplies. Gazprombank is 36 percent-owned by Gazprom. RUNNING OUT OF PATIENCE "These sanctions are significant, but they are also targeted, designed to have the maximum impact on Russia while limiting any spillover effects on American companies or those of our allies," Obama told reporters. The new measures were announced on the same day that EU leaders met in Brussels and agreed to expand their own sanctions on Russia. The new U.S. sanctions also include Feodosiya Enterprises, a shipping facility in Crimea, and senior Russian officials, several of whom had already been targeted by the European Union. The affected senior officials included the deputy head of the State Duma, or parliament, the minister of the Crimea, a commander of the Russian intelligence agency FSB, and a Ukrainian separatist leader. Obama in recent weeks has repeatedly threatened new sanctions, and appears to have run out of patience as fighting continued to rage in eastern Ukraine. The new sanctions were unlikely to please Republican lawmakers, many of whom have been calling for the imposition of sanctions on entire Russian industries, rather than specific companies, as the best way to control Putin. Republican lawmakers said they welcomed the additional sanctions but that Obama should go further. Several lawmakers, Republicans in particular, have called for broader sectoral sanctions targeting important Russian industries like energy and banking. "Until now, the administration's response to Putin’s aggression has given him little reason to change his behavior. Continuing to go after the Russian economy is the way to send the most effective message," Dan Coats, an Indiana Republican, said. For more details on the sanctions, see http://1.usa.gov/1kx0sxT. (Additional reporting by Jeff Mason, Patricia Zengerle and Phil Stewart in Washington, Adrian Croft in Brussels and Josephine Mason, Edward McAllister, and Jonathan Leff in New York; Editing by Peter Cooney)

Resolution 1541, Decolonization, Self-Determination (If Kosovo can, so can Crimea)

Alan Fairhurst The right of nations to self-determination (from German: Selbstbestimmungsrecht der Völker), or in short form, the right to self-determination is the cardinal principle in modern international law (jus cogens), binding, as such, on the United Nations as authoritative interpretation of the Charter’s norms. It states that nations based on respect for the principle of equal rights and fair equality of opportunity have the right to freely choose their sovereignty and international political status with no external compulsion or interference which can be traced back to the Atlantic Charter, signed on 14 August 1941, by Franklin D. Roosevelt, President of the United States of America, and Winston Churchill, Prime Minister of the United Kingdom who pledged The Eight Principal points of the Charter. The principle does not state how the decision is to be made, or what the outcome should be, whether it be independence, federation, protection, some form of autonomy or even full assimilation. Neither does it state what the delimitation between nations should be — or even what constitutes a nation. In fact, there are conflicting definitions and legal criteria for determining which groups may legitimately claim the right to self-determination. On 14 December 1960, the United Nations General Assembly adopted United Nations General Assembly Resolution 1514 under titled Declaration on the Granting of Independence to Colonial Countries and Peoples provided for the granting of independence to colonial countries and peoples in providing an inevitable legal linkage between self-determination and its goal of decolonisation, and a postulated new international law-based right of freedom also in economic self-determination. In Article 5 states: Immediate steps shall be taken in Trust and Non-Self-Governing Territories, or all other territories which have not yet attained independence, to transfer all powers to the peoples of those territories, without any conditions or reservations, in accordance with their freely expressed will and desire, without any distinction as to race, creed or colour, in order to enable them to enjoy complete independence and freedom, moreover on 15 December 1960 the United Nations General Assembly adopted United Nations General Assembly Resolution 1541 under titled Principles which should guide members in determining whether or nor an obligation exists to transmit the information called for under Article 73e of the United Nations Charter in Article 3 provided that [i]nadequacy of political, economic, social or educational preparedness should never serve as a pretext for delaying independence. To monitor the implementation of Resolution 1514 in 1961 the General Assembly created the Special Committee referred to popularly as the Special Committee on Decolonization to ensure decolonization complete compliance with the principle of self-determination in General Assembly Resolution 1541, 12 Principle of the Annex defining free association with an independent State, integration into an independent State, or independence as the three legitimate options of full self-government compliance with the principle of self-determination. "National aspirations must be respected; people may now be dominated and governed only by their own consent. Self determination is not a mere phrase; it is an imperative principle of action. . . . " —Woodrow Wilson with his famous self-determination speech on 11 February 1918 after he announced his Fourteen Points on 8 January 1918. Crimea referendum opponents manipulate detached norms of intl law – Churkin Published time: March 13, 2014 22:58 Edited time: March 14, 2014 03:16 Get short URL Russian Ambassador to the United Nations Vitaly Churkin addresses the United Nations Security Council during a meeting of the Council on the crisis in Ukraine, at U.N. Headquarters in New York, March 13, 2014. (Reuters/Mike Segar) Download video (54.97 MB) Share on tumblrTrends Ukraine turmoil Tags Human rights, Meeting, Opposition, Politics, Security, UN, Ukraine Addressing the chorus of criticism at the UN Security Council meeting on Ukraine, Moscow’s ambassador has reconfirmed that Russia does not want any escalation of the Ukraine crisis and is not interfering with the upcoming referendum in Crimea. “Russia does not want war and neither do the Russians, and I'm convinced the Ukrainians don't want that either,” ambassador Vitaly Churkin told an emergency meeting of the Security Council on Thursday. “We don’t see any basis to consider the issue in such terms.” It is unacceptable to reject Crimea’s right for self-determination using a smokescreen of protecting Ukraine’s territorial integrity, without even trying to balance these two principles, Churkin told the council. “Some dispute the legality of such a referendum, but it is unacceptable to manipulate individual principles and norms of international law, randomly pulling them out of context not only of the international law, but the specific political circumstances and historical aspects,” Churkin said. In each case, the envoy believes, one should “balance between the principles of territorial integrity and the right for self-determination.” “It is clear that the implementation of the right of self-determination in the form of separation from the existing state is an extraordinary measure. In Crimea such a case apparently arose as a result of a legal vacuum, which emerged as a result of unconstitutional, violent coup d'état carried out in Kiev by radical nationalists, as well as direct threats by the latter to impose their order on the whole territory of Ukraine.” Video: /files/news/23/91/e0/00/churkin-full-unsc-web_1416352.mp4 Churkin assured the international community that the Black Sea Fleet – the only Russian military force stationed in Crimea according to existing international agreements – does not and will not interfere with Sunday’s referendum on Crimean succession. “In the conduct of the referendum, organized by the Crimeans, the Russian Black Sea Fleet does not interfere,” he said. At the same time Churkin reminded about the urgent need to investigate the killings of protesters and security forces at Maidan square that brought new people to power in Kiev. Moscow keeps insisting on setting up a probe into these crimes, Churkin said. “Acts of violence perpetrated in Kiev need a careful international investigation,” he said, warning that the “image presented by Kiev and western propaganda is completely reversed by the information the same provocateurs were firing at both the representatives of the security forces and protesters.” “And, according to the latest published information, shooting came from the headquarters of the so-called ‘Maidan Commandant’, who now heads by the Security Council of Ukraine,” Russia's envoy said. In general, the UN Security Council members all sides called to abstain from taking positions that could deteriorate the Ukraine crisis. Several member states including the US, Britain and France were critical of Russia’s “actions in Crimea,” while the US ambassador Samantha Power even called for a suspension of the “illegitimate referendum” due to “the background of foreign military intervention.” Ukraine's coup-appointed prime minister Arseniy Yatsenyuk was also given the floor at the council meeting and used that chance to once again accuse Russia of “military aggression” in Crimea.

“This aggression has no reasons and no grounds,” Yatsenyuk said. “This is absolutely and entirely unacceptable in the 21st century, to resolve any kind of conflict with tanks, artillery and boots on the ground.”

With Western media and the self-proclaimed government in Kiev ranting about the Russian invasion in Crimea, international journalists on the scene are struggling to find any evidence of these claims. The United States in the meantime has ratcheted up its rhetoric with threats of sanctions against Russia if a referendum in Crimea goes ahead on Sunday. US Secretary of State John Kerry told a congressional hearing on Thursday that he hoped to avoid such steps, which include sanctions, through discussions with his Russian counterpart, Sergey Lavrov, in London on Friday. "If there is no sign of any capacity to be able to move forward and resolve this issue there will be a very serious series of steps in Europe and here with respect to the options that are available to us," Kerry said. ==================== West prepares sanctions as Russia presses on with Crimea takeover Fri, Mar 14 19:20 PM EDT 1 of 22 By Andrew Osborn and Lina Kushch SEVASTOPOL/DONETSK, Ukraine (Reuters) - Dozens of Russians linked to Russia's gradual takeover of Crimea could face U.S. and EU travel bans and asset freezes on Monday, after six hours of crisis talks between Washington and Moscow ended with both sides still far apart. Moscow shipped more troops and armor into Crimea on Friday and repeated its threat to invade other parts of Ukraine in response to violence in Donetsk on Thursday night despite Western demands to pull back. EU diplomats will choose from a long list of 120-130 possible Russian targets for sanctions on Sunday, as pro-Moscow authorities who have taken power in Crimea hold a vote to join Russia in the worst East-West confrontation since the Cold War. Several diplomats dismissed a German newspaper report that said the list would include the heads of Russia's two biggest companies, energy giants Gazprom and Rosneft. U.S. Secretary of State John Kerry said Russia would be guilty of a backdoor annexation of Crimea if its parliament ratified the Crimea referendum, which is taking place after an armed takeover of Crimea and gives voters no chance to say "no". He has warned Moscow that U.S. and EU sanctions could be imposed as soon as Monday, although U.S. officials said after Kerry's marathon meeting with Russian Foreign Minister Sergei Lavrov in London on Friday the door was still open for more talks. Lavrov played down his own ministry's threats, saying Moscow had no plans to invade Russian-speaking eastern Ukraine, where pro-Moscow groups have occupied some government buildings. But he said Russia would respect the referendum result. Preliminary partial results are expected late on Sunday, with final results on Tuesday. STOCK MARKET FALLS Russia's stock markets tumbled and the cost of insuring its debt soared on the last day of trading before the Crimea vote. Brent crude oil rose by more than $1 as traders worried the crisis was set to escalate. Foreign holdings of U.S. Treasuries have also plunged this week, leading some traders to speculate Russia has cut its dollar reserves to support the ruble and avoid any sanctions. An EU diplomat said he expected the final list of those who could be sanctioned on Monday to be between "tens and scores" of people from the list, which runs to five pages. Germany's Bild newspaper reported that Alexei Miller, boss of natural gas monopoly Gazprom, and Igor Sechin, head of Russia's biggest oil firm, Rosneft, would be among those targeted, along with senior ministers and Kremlin aides. Reuters was not immediately able to confirm the Bild report and European diplomats said the choice had not yet been made and was unlikely to include business leaders. "(Business interests) is not the target initially, the focus is on the political decision that has been taken to act in Crimea and destabilize Ukraine," said one diplomat involved in the negotiations. Rosneft spokesman Mikhail Leontyev said sanctions on his firm's boss would be "stupid, petty and obvious sabotage of themselves most of all. I think it will primarily affect Rosneft's business partners in the West in an extraordinary way." Gazprom and the Kremlin declined to comment. FELLOW CITIZENS A U.N. Security Council resolution drafted by the United States declaring that the referendum "can have no validity" will be put to a vote on Saturday. Russia is expected to veto it but Western diplomats hope China will isolate Moscow by abstaining. Kerry told Lavrov Russia should explain its intentions for the large number of Russian forces massing on the eastern border with Ukraine, where many ethnic Russians live, and in Crimea. The Russian Foreign Ministry, responding to the death of at least one protester in Ukraine's eastern city of Donetsk, repeated President Vladimir Putin's declaration of the right to invade to protect Russian citizens and "compatriots". "Russia is aware of its responsibility for the lives of compatriots and fellow citizens in Ukraine and reserves the right to take people under its protection," it said, alluding to what it says are threats from Ukraine's new pro-Western leaders. Ukrainian health authorities say one 22-year-old man was stabbed to death and at least 15 others were being treated in hospital after clashes in Donetsk, the mainly Russian-speaking home city of Ukraine's ousted President Viktor Yanukovich. Organizers of the anti-Moscow demonstration said the dead man was from their group and the new pro-Western governor of Donetsk said Russians were behind the clashes. Moscow denies that its forces are intervening in Crimea, an assertion Washington ridicules as "Putin's fiction". Journalists have seen Russian forces operating openly in their thousands over the past two weeks, driving in armored columns of vehicles with Russian license plates and identifying themselves to besieged Ukrainian troops as members of Russia's armed forces. A Reuters reporter watched a Russian warship unload trucks, troops and at least one armored personnel carrier at Kazachaya bay near Sevastopol on Friday morning. Trucks drove off a ramp from the Yamal 156, a large landing ship that can carry more than 300 troops and up to a dozen APCs. In nearby Simferopol, around 300 Tatars protested against the referendum. Tatars, a majority in Crimea until Soviet leader Josef Stalin deported them en masse for alleged collaboration with the Nazis in World War Two, are strongly anti-Russian. FACTS ON THE GROUND Russian troops seized the Black Sea peninsula two weeks ago as a pro-Moscow regional government took power there. The new regional authorities intend to secede from Ukraine and join Russia in a vote described in the West as illegal. Putin declared on March 1 that Russia had the right to invade its neighbor, a week after its ally Yanukovich fled the Ukrainian capital following three months of demonstrations that ended with about 100 people killed in the final days. The Defense Ministry said on Friday it would hold exercises with fighter jets and helicopters over the Mediterranean sea. On Thursday it announced artillery drills near Ukraine's border. U.S. and EU sanctions on Russian officials and other figures are now seen as inevitable. A formal EU decision to impose sanctions will be taken on Monday unless Moscow rapidly changes course. U.S. and European officials say the targets will not include Putin or Lavrov, and an east European diplomat said the EU might impose sanctions on one set of people on Monday, and add others on Wednesday and during an EU summit on Thursday and Friday. "It could start by sanctioning those directly involved with the situation in Crimea. Then if Russia doesn't respond, expand to include senior figures in the Russian Senate, and then ultimately expand to include very senior people," the diplomat said. Bild's list included Defence Minister Sergei Shoigu, Deputy Prime Minister Dmitry Rogozin, presidential administration chief Sergei Ivanov and the secretary of the National Security Council, Nikolai Patrushev. SHARES FALL, DEBT INSURANCE COSTS RISE Russia's MICEX stock index has lost more than 16 percent of its value in the two weeks since Putin declared his right to invade. The cost of insuring Russia's debt against default is now up by half since the crisis began. Although Russian public opinion, fed by overwhelmingly state-controlled media, is still solidly behind the plan to annex Crimea, Western countries believe sanctions could undermine support for Putin among the wealthy elite. Former Finance Minister Alexei Kudrin told Russian media that the threat of Western sanctions was already imposing higher borrowing costs on Russian businesses and that further sanctions would push capital flight to $50 billion a quarter. Renaissance Capital estimated capital outflow in the first quarter would exceed $55 billion, compared with $63 billion for the whole of 2013. The ruble has declined only slightly despite the fall in share prices, held aloft by a central bank that raised its lending rates on March 3 and has been spending reserves to keep the currency from falling. (Writing by Peter Graff and Philippa Fletcher; Editing by Will Waterman, Giles Elgood and Sonya Hepinstall) ========================== Recent history teaches us that whenever western leaders and their elite media cheerleaders talk of an international “crisis” and warn that “something must be done” the best way of avoiding a real crisis is to do absolutely nothing. Op-Edge by Neil Clark Crimea – another artificially created crisis Neil Clark is a journalist, writer and broadcaster. His award winning blog can be found at www.neilclark66.blogspot.com. Follow him on Twitter Get short URL Published time: March 14, 2014 14:38 Pro-Russian supporters attend a rally in Simferopol, March 9, 2014.(Reuters / Vasily Fedosenko) Share on tumblrTags Crisis, Iran, Libya, Politics, Russia, Syria, UK, Ukraine Russian Foreign Minister Sergey Lavrov has said that the Ukraine/Crimea crisis has been “created artificially for purely geopolitical reasons." And he’s right. It's important to understand that this is not a “one-off” but only the latest in a long line of international “crises” either deliberately hyped up or artificially created by the western powers to further their geopolitical interests. British Foreign Secretary William Hague has said that Crimea is the “the biggest crisis in Europe in the 21st century.” But it‘s not the first time leading western politicians have talked in such alarmist terms in recent years. Exactly 15 years ago, in March 1999, we had the Kosovo “crisis” – with western leaders claiming that unless NATO took urgent military action thousands of Kosovan Albanians would be killed by Serb forces, who we were told were engaged in a brutal genocidal war. British Prime Minister Tony Blair told the House of Commons on March 23, 1999: “We must act to save thousands of innocent men, women and children from humanitarian catastrophe, from death, barbarism and ethnic cleansing from a brutal dictatorship.” But it was an artificially-created “crisis” as what was going on in Kosovo was a low-level conflict between Yugoslav forces and Kosovan Liberation Army fighters backed by the West. The KLA’s job was to carry out attacks on Yugoslav forces, provoke a violent response from Belgrade, which could then be used as a pretext for NATO intervention to destroy an independent, socialist country which had resisted globalization. A “crisis” had to be created in order to justify the NATO military action. Four years later, we had the Iraq WMD “crisis.” Something had to be done about Saddam's deadly weapons which threatened us all, western leaders told us. We couldn't wait for the team of UN weapons inspectors to finish their job.

“If we don't act now, then we will go back to what has happened before and then of course the whole thing begins again and he carries on developing these weapons and these are dangerous weapons, particularly if they fall into the hands of terrorists who we know want to use these weapons if they can get them,” Blair said.

Protestors block a street with burning tyres in Libya's second city of Benghazi on February 26, 2014 after the killings of two policemen.(AFP Photo / Abdullah Doma) On April 28, 2003, when Saddam’s WMD hadn’t shown up, Blair said: “Before people crow about the absence of Weapons of Mass Destruction, I suggest they wait a bit.” Eleven years on, and we’re still waiting. Throughout the last decade we've also had the Iranian nuclear “crisis.” We were told repeatedly by the West’s elite that the Islamic Republic was developing nuclear weapons which posed a clear threat not just to the Middle East region but to the whole world. Dealing with the Iranian nuclear “threat’ was deemed to be our most urgent priority. In January 2011, British Defense Secretary Liam Fox warned that Iran could have nuclear weapons by the end of 2012. But 2013 dawned and Iran still didn’t have any nukes. Then there was the “crisis” in Libya in 2011. We were told Colonel Gaddafi's forces were massacring innocent people and were about to launch a genocidal attack on the civilians in Benghazi. Again, we had to deal with this urgent “crisis.” “We simply cannot stand back and let a dictator whose people have rejected him, kill his people indiscriminately,” declared British Prime Minister David Cameron, doing his best Tony Blair impression. “Confronted by this brutal repression and a looming humanitarian crisis, I ordered warships into the Mediterranean. European allies declared their willingness to commit resources to stop the killing,” said President Barack Obama on March 28, 2011. As in the case of the “crisis” in Kosovo and the “crisis” with Iraqi WMDs, the western response to the “crisis” in Libya was a military attack. In August 2013, another “crisis” – with Western claims that the Syrian government had launched a deadly chemical weapons attack against its own people. Again, we were told we had to act quickly and firmly to deal with the “crisis”. It was only the diplomacy of Russia and public opinion in western countries that prevented a US-led military attack against Syria. Now, in March 2014, the new “crisis” is Putin's “invasion” of Ukraine and the threat Russia poses to independent, “democratic” Ukraine. This, don’t forget is “the biggest crisis in Europe in the 21st century.” In fact, none of the above were real crises – including Crimea. There was no genocide in Kosovo. Iraq had no WMDs. Iran had no nuclear weapons program: it was a “Manufactured Crisis”, to use the title of investigate journalist Gareth Porter’s new book. Gaddafi's forces weren't massacring civilians in Libya – nor had Gaddafi threatened a massacre of civilians in Benghazi. What Libyan forces were doing was what Yugoslav forces were doing in 1999: i.e. fighting a war against western-backed insurgents. In Syria, the evidence – as well as logic – suggests it was the rebels, and not the government which launched the chemical weapons attack at Ghouta – in order to get a full-scale military intervention from the western powers. And there is no Russian “invasion” of Ukraine. A Russian flag blows inside the entrance of Crimea's regional parliament building in Simferopol on March 13, 2014.(AFP Photo / Filippo Monteforte ) But – and here's the most important point – the western responses to these artificially created “crises” did lead to real crises. The “crisis” of Kosovo was dealt with by a brutal 78-day bombardment of Yugoslavia, which wrecked the country's infrastructure, and which left thousands killed or injured, with NATO’s use of depleted uranium leading to a spike in cancer rates. As for human rights, they’ve suffered too. “Nowhere [in Europe] is there such a level of fear for so many minorities that they will be harassed or attacked, simply for who they are,” said a report on Kosovo by Minority Rights Group International in 2006. The WMD “crisis” of Iraq led to an illegal invasion which Iraq has not yet recovered from, or is likely to recover from for a very long time – with up to 1m killed and a country plagued by violent sectarian conflict. Last year was Iraq’s deadliest since 2008, with over 7,000 people killed, In 2002/3 neocons couldn’t stop talking about the Iraq WMD ‘crisis’ and how urgent action was needed; now, when there is a real crisis in the country, they are silent. The Iranian nuclear “crisis” led to draconian sanctions being posed on the country – which has led to real hardship for the ordinary people of Iran – (as reported on RT) and higher oil prices for Europe too, just what we didn’t need at a time of major recession. Millions have suffered needlessly due to steps taken to deal with a “crisis” which never existed in the first place. The Libyan “crisis” of 2011 led to a brutal NATO assault on the country which led to thousands of deaths, and now Libya, like Iraq, is a wrecked country, again plagued with conflict. Again, those who couldn’t stop talking about the “humanitarian crisis” in Libya in 2011, are strangely silent these days. The Syrian chemical weapons attack “crisis” almost led to the outbreak of a major regional war, and possibly World War Three, but in their obsession with toppling the Baathist government, still the West and its regional allies supports the violent rebels thereby prolonging the misery of war for millions of Syrians. Now the serial “crisis” creators are at it again, this time trying to convince us that a referendum in Crimea and the possibility of the Crimea where almost 60 percent of the population are ethnic Russians returning to Russia is a major “crisis”. And once again the steps that they are proposing – sanctions on Russia – would lead to more of a crisis than the “crisis” itself: they would be disastrous for western economies, especially those in Europe. At the same time that we’re expected to lose sleep over artificially created crises like Crimea crisis which affect the lives of millions of ordinary people in the West and elsewhere are ignored by western elites. Global warming. The record numbers of young people without jobs. The ever-widening gap between rich and poor. The rapid fall in living standards of ordinary people in the west. These are crises which proper democratic governments would be dealing with. Instead the western elite prefer to invent new ones. Recent history teaches us that whenever western leaders and their elite media cheerleaders talk of an international “crisis” and warn that “something must be done” the best way of avoiding a real crisis is to do absolutely nothing. Let’s concentrate on tackling the real crises like environmental destruction, poverty, inequality and unemployment and not be fooled by the artificial “crises” that the western elites want us to focus on. The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT. ====================================

Russia and Iraqi Oil

Tags: Russian-Iraqi relations, Commentary, Business, Russia, World, oil extraction Pershkina Anastasiya Jan 19, 2012 20:57 Moscow Time Photo: RIA Novosti Five Russian companies will fight for Iraq oil tender. The auction will take place in April this year. Among the candidates are Russia’s state oil company Rosneft and the Bashneft Company, for which the geological survey in Iraq may become its first project abroad. Iraq has been holding auctions for its deposits since 2009. However, it is for the first time that it has decided to offer foreign companies a tender for geological survey, not for oil extraction. On the one hand, this could reduce interest in the auction, and on the other, we know that up to 15 per cent of the world reserves of oil are concentrated in Iraq. This fact dispels all doubts, which all those who are involved in the oil extraction business may have. Russia has never had any doubt, though, an analyst with the Moscow-based “Investcafe” agency, Vitaly Mikhalchuk, says. "Specialists from the former Soviet Union worked in Iraq earlier, and today Russia continues oil extraction in Iraq, taking into consideration the following: first, all these are promising deposits and second, Russian companies have sufficient experience of working in Iraq. For example, the LUKOIL Company is developing the West Qurna -2 oilfield in Iraq and the Russian gas giant Gazprom is developing Iraq’s Badra oil deposit." The Iraqi authorities’ interest in developing cooperation with the Russian companies can be explained not only by economic but also by political factors. The USA and Britain would like to get involved in the development of Iraq’s resources too. However, Iraq’s relations with these two countries are tense. That is why there’s reason to believe that Iraq will prefer to work with Russian companies, which is expected to be mutually advantageous cooperation, the President of the Union of the Oil and Gas Industrialists Gennady Shmal says. "The cost of oil extraction in Iraq is much lower than in Russia. Besides, the logistics sector in Iraq causes no pain at all. Europe, Japan, China, and many other countries buy Iraq’s oil with pleasure. Therefore, the companies working in Iraq show high economic indices, which means that such cooperation is beneficial for them." Both the development and the geological survey of deposits abroad mean consortium working with other companies. Powerful tandems can emerge in the course of such work. As an example, we can mention here the cooperation between Russia’s state oil company “Rosneft” and the American Exxon Mobil Corporation. These two are developing the Black Sea Shelf, sharing the existing risks. The Exxon Mobil Corporation undertakes the greater part of spending for geological survey, and its Russian partner gets involved at the stage of development. For a joint participation in the tender “Bashneft” has chosen the Vietnamese company PetroVietnam. It is a very interesting partner, continues Gennady Shmal: "Any alliance is of great help in using the experience which the two sides have acquired. For example, the Vietnamese company, PetroVietnam” is developing the White Tiger deposit in the southern part of the country. This deposit is considered to be a very difficult one – that is why cooperation would be only welcome there." The main problem in Iraq is the fact that its infrastructure was practically ruined during the war. Besides, the debates about the oil-and-gas law were again delayed in early January. The Kurdistan Regional Government and the federal government of Iraq have been debating about the control of the oil and gas deposits in the country for nearly 2 years now. The interest of the parties concerned is quite understandable but foreign companies whose rights are defended by no law at all may suffer as a result. =========== Statoil to Sell Stake in West Qurna-2? Posted on 15 January 2012. Tags: Statoil, West Qurna The Middle East Economic Survey (MEES) reports that Norwegian producer Statoil ASA is trying to sell its stake in the West Qurna-2 oilfield. According to the report, the company may use the negotiations to improve the terms of the West Qurna-2 contract and decide against pulling out. If a sale happened, it would be the first re- sale of energy assets awarded to international companies during Iraq’s 2009 auction round. ================ Global oil and gas M&A faces tough 2012 Thu, Jan 19 13:53 PM EST * Funding difficulties could limit deals in 2012 * Global oil, gas M&A hit $317 billion last year * Shale-related transactions tipped for growth By Oleg Vukmanovic LONDON, Jan 19 (Reuters) - Oil and gas company mergers and acquisitions rose in number but fell in total value in 2011 due to a decline in transactions topping $1 billon, according to an analysis of activity by global law firm Ernst & Young . Funding difficulties and euro zone debt fears could keep a leash on deal-making in 2012, particularly in the economically sensitive parts of the downstream sector, the firm warned. Companies struck 1,322 deals worth $317 billion, compared with $341 billion recorded in 2010 due to a decline in mega-deals from 76 to 71. The number of deals rose by more than 5 percent. North America continued to fuel activity with 562 deals in the upstream sector, but Europe and ex-Soviet states saw the strongest growth, the report said. "The oil and gas market has proved that it can adapt to higher levels of uncertainty and keep transacting. The key questions now are how it will cope with the combination of commodity price volatility and structural contraction in global debt capacity," Andy Brogan of Ernst & Young's transaction advisory services said. Shale-related transactions are tipped to see growth as China moves to develop its unconventional resource base, the biggest in the world with 19 percent of global reserves. About $66 billion was spent on shale transactions. Activity in the downstream sector declined modestly during 2011, but overall values were comparable with 2010 levels. "Downstream activity will continue but may be more concentrated in storage and midstream rather than refining." Brogan said. In oilfield services, high capitalization rates and opportunism meant an increase in deal activity that is set to continue in 2012, "underpinned by those seeking new geographies, new customers and new technologies", the firm said. ===================== Iraq, Lukoil Award $998M West Qurna Deal to Samsung THURSDAY, 26 JANUARY 2012 07:39 RIGZONE.COM Basra. Iraq and Russia's OAO Lukoil Holding have awarded a $998 million deal to south Korea's Samsung Group to develop the supergiant West Qurna phase 2 oil field, the Iraqi government said in a statement Wednesday. Government spokesman Ali al-Dabbagh said Samsung would build a central processing facility for oil production in the field. "Work in the processing facility is expected to finish in 31 months from the start of the work," Dabbagh said following a weekly cabinet meeting. Lukoil and Norway's Statoil ASA were awarded a 20-year service contract for West Qurna Phase 2 in Iraq's second licensing round held in December 2009. The companies promised to get the southern field pumping at a rate of 1.8 million barrels a day for payment of $1.15 a barrel with first oil planned for early 2013. =============== Bulgartransgaz Reports 1/3 Drop in Russian Gas Supplies Energy | February 3, 2012, Friday| 295 views According to Bulgartransgaz CEO Kiril Temelkov, Russia has slashed gas deliveries to Bulgaria, Greece, Turkey and Macedonia by 1/3. Photo by actualno.com Russian gas supplies to Bulgaria, Greece, Turkey and Macedonia have been reduced by 1/3, according to Kiril Temelkov, CEO of Bulgaria's state-owned gas transmission operator Bulgartransgaz. "At present, gas supplies for Bulgaria, as well as volumes of gas exported for Greece, Turkey and Macedonia, have been slashed by over 30%," Temelkov said in an interview on Friday. Bulgartransgaz' CEO explained that Bulgaria was using its own reserves to make up for the gas supply restriction amid the severe winter weather. On Thursday, Dimitar Gogov, CEO of state-owned gas supplier Bulgargaz, told Capital Daily that natural gas consumption in Bulgaria had gone up by 10-15% over the cold spell of the last days. He told journalists that increased demand was being met by tapping reserves from the Chiren gas depot and from local gas production, which he said was quite scant. Gogov added that the consumers had been advised to stick to the contracted volumes of natural gas. Gogov further explained that, although the Chiren gas depot contained reserves for 90 days, only limited quantities of gas could be taken out of it on a daily basis, and the volumes would not suffice to meet soaring consumption. Earlier on Friday, EU observer noted that impact of the sharp drop in Russian gas supplies had spread to a total of nine countries, including Italy, Austria, Slovakia, Poland, the Czech Republic, Bulgaria, Greece, Hungary and Romania. Gas supply restrictions first hit Italy on Tuesday. Tags: Bulgartransgaz, Kiril Temelkov, Dimitar Gogov, Bulgargaz, natural gas, Russian gas, Chiren =================