Russian Oil and Gas Industry: News

JohninMK wrote:I suspect that you all know the importance of the oil as well as gas exports from Russia to the EU. Well, it looks like someone is starting to poke the oil bear.


LUKoil vice-president for oil refining says the Russia’s oil company wants the European Commission’s help in tackling allegations of money laundering and tax evasion at its refinery in Romania.

BRUSSELS (Sputnik) – Russia’s oil company LUKoil wants the European Commission’s help in tackling allegations of money laundering and tax evasion at its refinery in Romania, LUKoil vice-president for oil refining said Wednesday.

Prosecutors in the city of Ploesti said last week that they had seized fixed assets belonging to LUKoil’s Romanian subsidiary as part of an ongoing investigation into money laundering and tax evasion.

"We would like to see European involvement in this because we have a small, relatively minor court making huge decisions that impact not only Romanian assets, but now European assets," Thomas Mueller told reporters. The frozen assets, belonging to Petrotel-Lukoil in Ploesti and the Netherlands-based Lukoil Europe Holdings that is Petrotel’s majority stakeholder, are valued from $657 million to $2.4 billion. Mueller added that LUKoil CEO Vagit Alekperov had requested assistance in the form of a "more open" investigation in a written letter to European Commission Vice-President for Energy Union Maros Sefcovic last week.

A source close to the matter later confirmed to RIA Novosti that Sefcovic had received Alekperov’s letter and is reviewing it, but declined to elaborate further.

LUKoil’s vice-president warned that European assets, worth nearly $10 billion, are on the line if the Petrotel refinery in Ploesti shuts down. Romanian authorities have temporarily closed down the refinery in the past, including a raid conducted last October, on similar suspicions of wrongdoing.

Petrotel, Romania’s largest and one of the largest oil refineries in Eastern Europe, has been in operation under LUKoil management since 1998.

Read more: http://sputniknews.com/business/20150715/1024678679.html#ixzz3fzjCJr3Q

kvs wrote:Lukoil would have no reason to run a corrupt operation in Romania.   There is no incentive and lots of risk.   Perhaps they could
run a corrupt operation in Russia but they don't have to be total retards and only operate this way everywhere.

This is an obvious politically motivated, mafia-like move to extort Lukoil's assets.    Too bad the Romanian retarded poodles
of Washington will lose much more than what Lukoil will from this maneuver.  

JohninMK wrote:I suspect that you all know the importance of the oil as well as gas exports from Russia to the EU. Well, it looks like someone is starting to poke the oil bear.


LUKoil vice-president for oil refining says the Russia’s oil company wants the European Commission’s help in tackling allegations of money laundering and tax evasion at its refinery in Romania.

BRUSSELS (Sputnik) – Russia’s oil company LUKoil wants the European Commission’s help in tackling allegations of money laundering and tax evasion at its refinery in Romania, LUKoil vice-president for oil refining said Wednesday.

Prosecutors in the city of Ploesti said last week that they had seized fixed assets belonging to LUKoil’s Romanian subsidiary as part of an ongoing investigation into money laundering and tax evasion.

"We would like to see European involvement in this because we have a small, relatively minor court making huge decisions that impact not only Romanian assets, but now European assets," Thomas Mueller told reporters. The frozen assets, belonging to Petrotel-Lukoil in Ploesti and the Netherlands-based Lukoil Europe Holdings that is Petrotel’s majority stakeholder, are valued from $657 million to $2.4 billion. Mueller added that LUKoil CEO Vagit Alekperov had requested assistance in the form of a "more open" investigation in a written letter to European Commission Vice-President for Energy Union Maros Sefcovic last week.

A source close to the matter later confirmed to RIA Novosti that Sefcovic had received Alekperov’s letter and is reviewing it, but declined to elaborate further.

LUKoil’s vice-president warned that European assets, worth nearly $10 billion, are on the line if the Petrotel refinery in Ploesti shuts down. Romanian authorities have temporarily closed down the refinery in the past, including a raid conducted last October, on similar suspicions of wrongdoing.

Petrotel, Romania’s largest and one of the largest oil refineries in Eastern Europe, has been in operation under LUKoil management since 1998.

Read more: http://sputniknews.com/business/20150715/1024678679.html#ixzz3fzjCJr3Q

Karl Haushofer wrote:

kvs wrote:Lukoil would have no reason to run a corrupt operation in Romania.   There is no incentive and lots of risk.   Perhaps they could
run a corrupt operation in Russia but they don't have to be total retards and only operate this way everywhere.

This is an obvious politically motivated, mafia-like move to extort Lukoil's assets.    Too bad the Romanian retarded poodles
of Washington will lose much more than what Lukoil will from this maneuver.  

JohninMK wrote:I suspect that you all know the importance of the oil as well as gas exports from Russia to the EU. Well, it looks like someone is starting to poke the oil bear.


LUKoil vice-president for oil refining says the Russia’s oil company wants the European Commission’s help in tackling allegations of money laundering and tax evasion at its refinery in Romania.

BRUSSELS (Sputnik) – Russia’s oil company LUKoil wants the European Commission’s help in tackling allegations of money laundering and tax evasion at its refinery in Romania, LUKoil vice-president for oil refining said Wednesday.

Prosecutors in the city of Ploesti said last week that they had seized fixed assets belonging to LUKoil’s Romanian subsidiary as part of an ongoing investigation into money laundering and tax evasion.

"We would like to see European involvement in this because we have a small, relatively minor court making huge decisions that impact not only Romanian assets, but now European assets," Thomas Mueller told reporters. The frozen assets, belonging to Petrotel-Lukoil in Ploesti and the Netherlands-based Lukoil Europe Holdings that is Petrotel’s majority stakeholder, are valued from $657 million to $2.4 billion. Mueller added that LUKoil CEO Vagit Alekperov had requested assistance in the form of a "more open" investigation in a written letter to European Commission Vice-President for Energy Union Maros Sefcovic last week.

A source close to the matter later confirmed to RIA Novosti that Sefcovic had received Alekperov’s letter and is reviewing it, but declined to elaborate further.

LUKoil’s vice-president warned that European assets, worth nearly $10 billion, are on the line if the Petrotel refinery in Ploesti shuts down. Romanian authorities have temporarily closed down the refinery in the past, including a raid conducted last October, on similar suspicions of wrongdoing.

Petrotel, Romania’s largest and one of the largest oil refineries in Eastern Europe, has been in operation under LUKoil management since 1998.

Read more: http://sputniknews.com/business/20150715/1024678679.html#ixzz3fzjCJr3Q

Lukoil should have never bought that refinery in Romania. It should have used the same money to build a refinery in Russia.

I'm pretty sure there will be other confiscations of Russian property in the West. If the Russians were wise they should not invest in any assets in the West and not put their money to any Western banks. I guess it is impossible for the Russians to get their money back from the Western investments now. They are lost. But I would be happy if they just realized not to put their money in there anymore.

Russia should naturally respond to this confiscation with some way, but I guess Russian options are limited because Russia does not really want to drive the remaining Western investors out of the country. I guess Russia should just take this loss and learn the valuable lesson.

Austin wrote:Check this interview

Sergey Donskoy: "Despite the shale revolution, Russia is still the world leader in oil and gas"

http://ru-facts.com/news/view/47124.html

kvs wrote:
There is no shale revolution.   There is shale hype.   Tight gas and previously costly to extract oil reservoirs
such as the Bakken and Eagle Ford are side show peanuts.  

For a dose of reality read:

http://www.resilience.org/stories/2015-02-12/arthur-berman-interview-why-today-s-shale-era-is-the-retirement-party-for-oil-production

Austin wrote:

kvs wrote:
There is no shale revolution.   There is shale hype.   Tight gas and previously costly to extract oil reservoirs
such as the Bakken and Eagle Ford are side show peanuts.  

For a dose of reality read:

http://www.resilience.org/stories/2015-02-12/arthur-berman-interview-why-today-s-shale-era-is-the-retirement-party-for-oil-production

This is what Russian Energy Minister said two days back

Iran’s return to oil market won’t have big effect, shale will – Russian energy minister

Austin wrote:

kvs wrote:
There is no shale revolution.   There is shale hype.   Tight gas and previously costly to extract oil reservoirs
such as the Bakken and Eagle Ford are side show peanuts.  

For a dose of reality read:

http://www.resilience.org/stories/2015-02-12/arthur-berman-interview-why-today-s-shale-era-is-the-retirement-party-for-oil-production

This is what Russian Energy Minister said two days back

Iran’s return to oil market won’t have big effect, shale will – Russian energy minister

sepheronx wrote:

Austin wrote:

kvs wrote:
There is no shale revolution.   There is shale hype.   Tight gas and previously costly to extract oil reservoirs
such as the Bakken and Eagle Ford are side show peanuts.  

For a dose of reality read:

http://www.resilience.org/stories/2015-02-12/arthur-berman-interview-why-today-s-shale-era-is-the-retirement-party-for-oil-production

This is what Russian Energy Minister said two days back

Iran’s return to oil market won’t have big effect, shale will – Russian energy minister

Well, he is wrong then.  Iranian oil is significantly cheaper to extract while Shale, without subsidies is $85 a barrel of oil and with subsidies about $55 a barrel.  And let us be honest, look what happened to Brazils oil company after they lifted subsidies and the company lost billions.  Same will happen and is happening with shale oil.

medo wrote:http://finance.yahoo.com/news/russia-just-one-upped-saudis-180031804.html

http://finance.yahoo.com/news/saudi-arabia-loses-spot-top-124039108.html

Russia become the largest oil supplier for China, Angola is next and Saudi Arabia fall to the third place. Saudi Arabia also fall in India, where Saudi Arabia lost to Nigeria. If Saudi Arabia want to recapture its position, they will have to sell oil in Renminbi instead of US Dolar.

US Dollar is loosing its monopoly position in oil and gas trade and this will be a big blow for US empire. With loosing its monopoly position, USD will quickly lost its value.

Karl Haushofer wrote:

medo wrote:http://finance.yahoo.com/news/russia-just-one-upped-saudis-180031804.html

http://finance.yahoo.com/news/saudi-arabia-loses-spot-top-124039108.html

Russia become the largest oil supplier for China, Angola is next and Saudi Arabia fall to the third place. Saudi Arabia also fall in India, where Saudi Arabia lost to Nigeria. If Saudi Arabia want to recapture its position, they will have to sell oil in Renminbi instead of US Dolar.

US Dollar is loosing its monopoly position in oil and gas trade and this will be a big blow for US empire. With loosing its monopoly position, USD will quickly lost its value.

I'm not sure that this is such a great achievement. Being an oil supplier for another nation.

China is actually draining Russian oil resources at a low price of $60 per barrel.

Prince Darling wrote:

Karl Haushofer wrote:

medo wrote:http://finance.yahoo.com/news/russia-just-one-upped-saudis-180031804.html

http://finance.yahoo.com/news/saudi-arabia-loses-spot-top-124039108.html

Russia become the largest oil supplier for China, Angola is next and Saudi Arabia fall to the third place. Saudi Arabia also fall in India, where Saudi Arabia lost to Nigeria. If Saudi Arabia want to recapture its position, they will have to sell oil in Renminbi instead of US Dolar.

US Dollar is loosing its monopoly position in oil and gas trade and this will be a big blow for US empire. With loosing its monopoly position, USD will quickly lost its value.

I'm not sure that this is such a great achievement. Being an oil supplier for another nation.

China is actually draining Russian oil resources at a low price of $60 per barrel.

its the market price, they arent stealing/draining or whatever, they are doing business.

Karl Haushofer wrote:

Prince Darling wrote:

Karl Haushofer wrote:

medo wrote:http://finance.yahoo.com/news/russia-just-one-upped-saudis-180031804.html

http://finance.yahoo.com/news/saudi-arabia-loses-spot-top-124039108.html

Russia become the largest oil supplier for China, Angola is next and Saudi Arabia fall to the third place. Saudi Arabia also fall in India, where Saudi Arabia lost to Nigeria. If Saudi Arabia want to recapture its position, they will have to sell oil in Renminbi instead of US Dolar.

US Dollar is loosing its monopoly position in oil and gas trade and this will be a big blow for US empire. With loosing its monopoly position, USD will quickly lost its value.

I'm not sure that this is such a great achievement. Being an oil supplier for another nation.

China is actually draining Russian oil resources at a low price of $60 per barrel.

its the market price, they arent stealing/draining or whatever, they are doing business.

I'm not saying China is stealing Russian oil as it is not. But Russia is selling huge amounts of a finite resource to another nation with a relatively cheap price. I don't think it is a great or even a good thing, especially in long term.

sepheronx wrote:

Karl Haushofer wrote:

Prince Darling wrote:

Karl Haushofer wrote:

medo wrote:http://finance.yahoo.com/news/russia-just-one-upped-saudis-180031804.html

http://finance.yahoo.com/news/saudi-arabia-loses-spot-top-124039108.html

Russia become the largest oil supplier for China, Angola is next and Saudi Arabia fall to the third place. Saudi Arabia also fall in India, where Saudi Arabia lost to Nigeria. If Saudi Arabia want to recapture its position, they will have to sell oil in Renminbi instead of US Dolar.

US Dollar is loosing its monopoly position in oil and gas trade and this will be a big blow for US empire. With loosing its monopoly position, USD will quickly lost its value.

I'm not sure that this is such a great achievement. Being an oil supplier for another nation.

China is actually draining Russian oil resources at a low price of $60 per barrel.

its the market price, they arent stealing/draining or whatever, they are doing business.

I'm not saying China is stealing Russian oil as it is not. But Russia is selling huge amounts of a finite resource to another nation with a relatively cheap price. I don't think it is a great or even a good thing, especially in long term.

In contrast to selling it to Europe? The fact that Russias oil supply will last for a very long time? Not to mention more oil wells in arctic?

Dont threat. Eventually China wont grow forever. So they wont be drilling and selling as much oil as they do now, way before oil runs out. Thankfully, they have invested in other energy sources too.

PapaDragon wrote:

JohninMK wrote:This, if for real, is a huge bombshell for the US/EU hopes of reducing dependence of Russian gas with imports from their new buddy Iran.

VIENNA, July 23. /TASS/. Iran may start liquefied natural gas (LNG) supplies to Europe in 5-10 years, Iran’s Deputy Oil Minister Amir Hossein Zamaninia told TASS on Thursday.

Iran may increase gas production to 1.1 bln cubic meters daily by 2017 — official

The deputy minister said such option is more preferable than building a gas pipeline to supply gas to European nations. Zamaninia said the price in Europe now is much lower than in South-East Asia and therefore there is no sense in pipeline gas supplies to Europe. Europe may become the market for Iranian gas in the mid-term, the official said at the Iran/EU investment and trade conference.

Zamaninia said the EU always consumed Iranian oil. Europe may be a market for the Iranian gas in the mid-term and long-term, he added. The deputy minister said natural gas will remain the preferable energy source in the foreseeable future. Iran and the EU may reach long-term relations in politics and the economy and in oil and gas sphere, Iran’s deputy minister said.

Also posted in the Iran News thread.

Meh, by that time Russia will be pumping both gas and oil to Asia big time, North Stream 2.0 will be fully operational, Turkey will be buying their share of RU gas and it will be Russian companies that will have big chunk in Iran petroleum industry.

Ruskies were not putting all that effort into removing Iran sanctions just because they were bored.  

magnumcromagnon wrote:

PapaDragon wrote:

JohninMK wrote:This, if for real, is a huge bombshell for the US/EU hopes of reducing dependence of Russian gas with imports from their new buddy Iran.

VIENNA, July 23. /TASS/. Iran may start liquefied natural gas (LNG) supplies to Europe in 5-10 years, Iran’s Deputy Oil Minister Amir Hossein Zamaninia told TASS on Thursday.

Iran may increase gas production to 1.1 bln cubic meters daily by 2017 — official

The deputy minister said such option is more preferable than building a gas pipeline to supply gas to European nations. Zamaninia said the price in Europe now is much lower than in South-East Asia and therefore there is no sense in pipeline gas supplies to Europe. Europe may become the market for Iranian gas in the mid-term, the official said at the Iran/EU investment and trade conference.

Zamaninia said the EU always consumed Iranian oil. Europe may be a market for the Iranian gas in the mid-term and long-term, he added. The deputy minister said natural gas will remain the preferable energy source in the foreseeable future. Iran and the EU may reach long-term relations in politics and the economy and in oil and gas sphere, Iran’s deputy minister said.

Also posted in the Iran News thread.

Meh, by that time Russia will be pumping both gas and oil to Asia big time, North Stream 2.0 will be fully operational, Turkey will be buying their share of RU gas and it will be Russian companies that will have big chunk in Iran petroleum industry.

Ruskies were not putting all that effort into removing Iran sanctions just because they were bored.  

Likely if that goes through, then it will probably come with Russia's approval, which entails to:

1.) The revenue from Persian gas being sold to Europe, may then be repaid by buying goods from Russia.

2.) Likely they'll use existing infrastructure built by Gazprom, in which Russia will earn transit fee's, as well as repair and maintenance fee's for pipeline up keep.

3.) As you said Russian companies will likely hold big shares, especially if Iran accepts the free-trade zone with the EEU (or possibly even join as a member of the EEU at a later point).