Chevron In Talks with Russia on Arctic Exploration

MOSCOW - U.S. oil major Chevron Corp. has held talks with a senior Russian government official on Arctic exploration, as the country's leader Vladimir Putin hinted he would allow non-state companies to operate in Russia's northern seas.

"Your country has enormous reserves, and the absence of large projects in the Russian Federation is a big gap in our portfolio," Chevron's Russia chief Andrew McGrahan told Deputy Minister for Natural Resources Denis Khramov at a meeting.

Unlike peers such as Exxon Mobil Corp., Royal Dutch Shell PLC and BP PLC, Chevron failed to gain a foothold in Russia following the breakup of the Soviet Union.

The parties discussed the development of Russia's Arctic reserves as well as changes to the investment climate and tax regime for oil companies operating in the country, the ministry said in a statement.

The news comes just a day after Prime Minister Putin, who is strong favorite to win presidential elections Sunday, said non-state companies should be allowed to explore offshore reserves in order to avoid a drop in Russia's hydrocarbon production. Currently only state-controlled OAO Gazprom and OAO Rosneft have the rights to develop strategic offshore reserves.

During the past decade, Russia has kept a tight grip on its oil and gas reserves, but in recent years some deals with Western oil majors have started to take shape. Last year, ExxonMobil agreed to join Rosneft as minority partner in exploring three licenses in Russia's northern Kara Sea. And in 2010, Chevron teamed up--also with Rosneft--to develop offshore deposits in the Black Sea, although that project ran into problems and Chevron eventually pulled out.

Khramov said his ministry is preparing changes to the current legislation, including liberalizing access to offshore reserves and lower taxes. The changes will be reviewed by the government in the second quarter 2012.

Copyright (c) 2012 Dow Jones & Company, Inc.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
 Company: BP plcmore info


 - From a Little-Known Shale Play in New Mexico, BP Gets a Gusher (Aug 7)
 - Big Oil Seen Vulnerable to Fresh Slump Despite Growth at $50 (Aug 2)
 - BP's West Africa Partner Kosmos To List In London By End-September (Aug 2)
 Company: Exxon Mobil Corporationmore info


 - Exxon Misses Estimates as Cuts Fail to Offset Output Declines (Jul 28)
 - Exxon Fined for Russia Sanctions Violations Under Tillerson (Jul 20)
 - ExxonMobil Says Will Drop Discussions Over Indonesia's East Natuna (Jul 18)
 Company: OAO Gazprommore info
 - Gazprom: Opal Pipeline Operating At Full Capacity (Aug 9)
 - EU Court Rejects Polish Bid To Halt Opal Pipeline Deal, Verdict In 2019 (Jul 21)
 - New UK Listing Rules Set to Attract State Companies Beyond Aramco (Jul 17)
 Company: Shellmore info


 - Shell Divests Stake in Saudi JV (Aug 16)
 - Australia's $180B LNG Megaproject Boom Enters Final Stretch (Aug 14)
 - BP Says It Is Considering IPO of US Pipeline Assets (Jul 18)
 Company: Chevron Corporationmore info
 - Glencore, Chevron Enter Mexico's Recently Opened Fuel Market (Aug 17)
 - Jacobs Expands MSA for Chevron's US Refineries, Terminals (Aug 9)
 - Nigeria's State Oil Company Signs Deals With Chevron, Shell (Aug 3)
 Company: Rosneftmore info
 - Rosneft Seals First Asian Refinery Deal With Essar Oil Purchase (Aug 21)
 - Rosneft Says Lent Venezuela's State Oil Firm A Total Of $6B (Aug 8)
 - Russian Oil Giant Lends Support to Venezuela Oil Company (Aug 4)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

Brent Crude Oil : $51.66/BBL 2.01%
Light Crude Oil : $47.37/BBL 2.35%
Natural Gas : $2.96/MMBtu 2.42%
Updated in last 24 hours