Arctic cooperation lies at the heart of the Rosneft/BP deal

Kasparov_t34 · Jan 19, 2011

The partnership between Rosneft and BP could become the first project to successfully produce major volumes of oil in the Arctic, which would give the companies experience and comparative advantage over competitors.

Valdaiclub.com interview with Clifford Kupchan, Director, Europe and Eurasia, Eurasia Group

The exchange of shares between Rosneft and BP is widely regarded as the first step of strategic partnership between the largest Russian oil company and one of the world's energy leaders. What can be expected from this partnership?

The deal demonstrates growing potential for synergies between reserve-hungry international oil companies and advanced technology-hungry national oil companies. In this case, the synergy could serve as a platform for a broad and productive partnership.
BP is one of the worlds leaders in advanced energy technologies and management of cutting-edge projects. Its reputation took a substantial blow from the Gulf oil spill; it will need to successfully resolve that issue and move forward to other projects. This alignment is a major step forward, and should help BP get back on track.

Rosneft has entered a partnership that offers it access to top quality project management experience and technology. The company is already a Russian industry leader, and if this deal extends to a range of global projects, it would put Rosneft on the path to becoming a major global company.

The full version of the interview was published on valdaiclub.com

waltky · Aug 16, 2011

Russia grabbin' for the Arctic resource goodies...

Russia's Arctic 'sea grab'
August 14, 2011 - Russia is expected within months to claim to the United Nations its right to annex about 380,000 square miles of the Arctic.

In a multinational race to seize the potential riches of the formerly icebound Arctic, being laid bare by global warming, Russia is the early favorite. Within the next year, the Kremlin is expected to make its claim to the United Nations in a bold move to annex about 380,000 square miles of the internationally owned Arctic to Russian control. At stake is an estimated one-quarter of all the world's untapped hydrocarbon reserves, abundant fisheries, and a freshly opened route that will cut nearly a third off the shipping time from Asia to Europe.

The global Arctic scramble kicked off in 2007 when Russian explorer Artur Chilingarov planted his country's flag beneath the North Pole. "The Arctic is Russian," he said. "Now we must prove the North Pole is an extension of the Russian landmass." n July, the Russian ship Akademik Fyodorov set off, accompanied by the giant nuclear-powered icebreaker, to complete undersea mapping to show that the Siberian continental shelf connects to underwater Arctic ridges, making Russia eligible to stake a claim. Around the same time, Defense Minister Anatoly Serdyukov announced the creation of an Arctic military force tasked with backing up Moscow's bid.

"We are open for a dialogue with our foreign partners and with all our neighbors in the Arctic region, but of course we will defend our own geopolitical interests firmly and consistently," Prime Minister Vladimir Putin said in July. Among other things, Moscow plans to build at least six more icebreakers and spend $33 billion to construct a year-round port on the Arctic shores. Russia, Canada, the United States, Denmark, and Norway own Arctic coasts that could, theoretically, be extended as far as the North Pole. But in the absence of a regional deal, tensions are mounting.

This month, Canada holds Operation Nanook, an Arctic military exercise designed to send a stern message to Moscow. Canada also has plans for its own territorial claim. The US, which has not signed the UN Convention on the Law of the Sea, under which any territorial divisions would be made, is also beefing up its regional military might.

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Dutch · Aug 17, 2011

waltky said: ↑

Russia grabbin' for the Arctic resource goodies...

Russia's Arctic 'sea grab'
August 14, 2011 - Russia is expected within months to claim to the United Nations its right to annex about 380,000 square miles of the Arctic.
Click to expand...

Russia grabbin'? Thank G*D Russia has decisive, pragmatic Government, unlike this (*)(*)(*)(*)head we have in the White House. We should have been drilling Alaska long ago.

waltky · Aug 30, 2011

Exxon gettin' in bed with the Russkies...

Exxon in Arctic deal with Russian oil giant
August 30, 2011: Exxon to get access to huge Arctic and Siberian reserves, Rosneft will benefit from deepwater and advanced drilling techniques.

ExxonMobil is making a big move into the Russian Arctic. The U.S. oil company entered into a partnership with Russian oil giant Rosneft Tuesday, giving Exxon access to vast Arctic oil deposits and Rosneft a leg up in cutting-edge oil technology. Executives from the two companies inked the deal in a ceremony attended by Russian Prime Minister Vladimir Putin, according to an Exxon press release. Rosneft is 75% owned by the Russian government.

"This large-scale partnership represents a significant strategic step by both companies," Exxon Chief Executive Rex Tillerson said in a statement. "This agreement takes our relationship to a new level and will create substantial value for both companies." The deal comes just months after Exxon rival BP sought to strike a similar arrangement with Rosneft. That deal collapsed, with some speculating that BP didn't do enough to entice key Russian players.

For Exxon, the Arctic rights are a prized concession as major international oil companies like Chevron and Shell scramble to find new reserves in an era when increasing amounts of the world's remaining oil are controlled by national oil companies like Saudi Arabia's Aramco or Mexico's Pemex. The Arctic is thought to hold vast amounts of untapped oil.

The deal also gives Exxon access to Siberian "tight oil" plays, which would include oil from shale or other formations that require the use of hydraulic fracturing -- a controversial practice that uses water, sand and chemicals to free the entrapped oil or gas but has raised concerns over its effects on groundwater. Hydraulic fracturing, known as fracking, is widely used in shale formations in the U.S. and has recently unlocked huge new energy deposits, but it's relatively rare overseas.

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Rexody · Aug 31, 2011

BP couldn't meet requirement.
Exxon filled the void.
Free market.

waltky · Nov 22, 2015

Russia wants to share the Arctic...

US Surprised by Russia's Willingness to Share Arctic Plans: Admiral
Nov 20, 2015 | There may be a Cold War-like chill in Congress these days with recent Russian interventions into Crimea and Syria, but in a place where cold -- very cold -- temperatures is the norm, U.S. and Russian relations appear far warmer.

The Defense Department's senior oceanographer and navigator told two subcommittees of the House Armed Services Committee on Tuesday that Russia has been open with the U.S. on its activities in the Arctic and has shown no intention of encroaching on areas of U.S. sovereignty. "I can give you the Navy and the Department of Defense perspective on" Russian activities in the Arctic, Rear Adm. Timothy C. Gallaudet told lawmakers. While the Navy does keep an eye on the Greenland, Iceland and U.K. gap -- long a route used by Russian submarines -- he said, "We also see that Russia has not made any attempts to violate our territorial seas." The Russians have remained in compliance with Bering Strait maritime boundaries established in 1990, he said.

A Russian aircraft-carrier during military exercises of the North Fleet in August 2005 in the Barents Sea

Gallaudet told the joint hearing of Western Hemisphere Subcommittee and the Europe, Eurasia, and Emerging Threats Subcommittee that during a visit earlier this month to St. Petersburg, the Russian navy opened up its own maps of the Arctic seafloor and officials detailed development plans for Russia's own sovereign areas. "The Russians were very, very open about their intentions in the Arctic," he said. "They intend to develop it economically [and] their security, their growth in there, their military is designed primarily for that -- to provide security for that economic growth on the northern sea route. "We were quite amazed that they were so forthright and open in sharing hydrographic data with us and encouraging cooperation," he added. "They basically see the Arctic as the one region the rest of the world might work with them on, in view of their aggression in Crimea."

Retired Coast Guard Commandant Adm. Robert Papp, now the U.S. Special Representative for the Arctic -- an appointment by the State Department -- told the joint panel that Russia has a longer history in the Arctic and are "much more connected to the Arctic than we are. "Russia has half the coast line around the Arctic Ocean, so it's understandable when they have a larger population than us and the waterway is open more than ours has been for centuries, that they're going to have more activity up there," he added. "So they're doing legitimate things they should be doing as an Arctic nation and preparing for increased human activities." The U.S. should be doing the same, Papp said.

http://www.military.com/daily-news/...s-willingness-share-arctic-plans-admiral.html
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Arctic cooperation lies at the heart of the Rosneft/BP deal

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