"ExxonMobil, BP Extend Partnerships With Russia Despite Sanctions"

"Oil companies ExxonMobil and BP defy the United States by collaborating with Russia in the energy sector. ExxonMobil and BP have separately signed agreements with Rosneft, Russia's state-owned oil company."

"Several of the largest oil companies in the world are doubling down in Russia despite moves by the West to isolate Russia and its economy. ExxonMobil and BP separately signed agreements with Rosneft – Russia’s state-owned oil company – to extend and deepen their relationships for energy exploration. The U.S. slapped sanctions on Rosneft’s CEO Igor Sechin in late April, freezing his assets and preventing him from obtaining visas.

However, the sanctions do not extend to Rosneft itself, allowing western companies to continue to do business with the Russian oil giant. ExxonMobil signed an agreement with Rosneft, extending its partnership to build a liquefied natural gas (LNG) terminal on Russia’s pacific coast. Known as the Far East LNG project, the export terminal will receive natural gas from Russia’s eastern fields as well as from Sakhalin-1, an island off Russia’s east coast. Rosneft announced the deal in a press release on its website on May 23.

The following day, Rosneft and BP signed an agreement to jointly explore oil in the Volga-Urals region. It will consist of a pilot project in the Domanik formations, and if successful could lead to the development of shale oil in Russia. Rosneft will maintain a 51 percent ownership of the joint venture and BP will own 49 percent."

Nick Cunningham reports for the Christian Science Monitor May 27, 2014.

Wednesday, May 28, 2014