World press on the oil industry in Russia (October 27-29, 2014)"The ‘Russification’ of Oil Exploration" reads the title of the article by Andrew Kramer published by the New York Times."Rather than throw in the towel in the face of Western sanctions intended to halt Russia’s Arctic oil ambitions by stopping technology transfers, the Russians have responded with plans to “Russify” the technology to be deployed in the world’s largest effort to date to extract oil from the thawing Arctic Ocean", reads the article."Certainly, some in the oil industry see the Russian official response as bluff, asserting Rosneft has neither the skills nor the capital to drill for oil in its 42 offshore licenses blocks. Under the joint ventures, the Western companies financed and managed the exploration work", writes Kramer. "The three companies, Exxon, Eni and Statoil, were to invest $20 billion in exploration, and the company has been mute on how it will replace that. Just this summer, Exxon paid $700 million to drill the Universitetskaya-1 well in the Kara Sea. Russia, meanwhile, does not even manufacture subsea hardware like well heads. Rosneft’s finances are restricted to 30-day loans under sanctions".Yet, as Kramer explains, "the sheer uncertainty of sanctions is pushing the Russian industry to turn inward".“Let’s not underestimate them,” the New York Times quotes an unnamed oil company executive “They are determined to do it. They might do it on their own.”
"The ‘Russification’ of Oil Exploration" reads the title of the article by Andrew Kramer published by the New York Times.
"Rather than throw in the towel in the face of Western sanctions intended to halt Russia’s Arctic oil ambitions by stopping technology transfers, the Russians have responded with plans to “Russify” the technology to be deployed in the world’s largest effort to date to extract oil from the thawing Arctic Ocean", reads the article.
"Certainly, some in the oil industry see the Russian official response as bluff, asserting Rosneft has neither the skills nor the capital to drill for oil in its 42 offshore licenses blocks. Under the joint ventures, the Western companies financed and managed the exploration work", writes Kramer. "The three companies, Exxon, Eni and Statoil, were to invest $20 billion in exploration, and the company has been mute on how it will replace that. Just this summer, Exxon paid $700 million to drill the Universitetskaya-1 well in the Kara Sea. Russia, meanwhile, does not even manufacture subsea hardware like well heads. Rosneft’s finances are restricted to 30-day loans under sanctions".
Yet, as Kramer explains, "the sheer uncertainty of sanctions is pushing the Russian industry to turn inward".
“Let’s not underestimate them,” the New York Times quotes an unnamed oil company executive “They are determined to do it. They might do it on their own.”
