Finance & Investing
News Services
Newsletters
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy
pledge.


advertisement

Chevron In Talks with Russia on Arctic Exploration

change text size

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?

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


 - BP Profit Jumps But Warns Of Russia Sanctions Impact (Jul 29)
 - Petrofac Wins Shah Deniz 2 Project Work (Jul 29)
 - Kemp: Forecasts for Higher Oil Prices Misjudge the Shale Boom (Jul 28)
 Company: Exxon Mobil Corporationmore info


 - ExxonMobil 2Q Profit Tops Estimates On Higher Oil Prices (Jul 31)
 - Rosneft Lines Up Anti-Sanctions Measures, Net Income Up (Jul 25)
 - Exxon Oil Rig Enters Uncharted Waters of Russian Political Storm (Jul 21)
 Company: OAO Gazprommore info
 - Ukraine Says EU Reverse Gas Flows Lower after Gazprom's 'Threats' (Jul 23)
 - Paper: Putin Mulls End To Gazprom Monopoly On Pipeline Gas Sales To China (Jul 22)
 - Russia's Gazprom Says Subsidiary Wins South Stream Tender in Serbia (Jul 8)
 Company: Shellmore info


 - Shell Quarterly Profit Beats Forecasts despite Impairments (Jul 31)
 - Shell's Pearl GTL: The Largest Gas-To-Liquids Plant In The World (Jul 30)
 - Shell Makes Third Major Discovery in Norphlet Play in GOM (Jul 15)
 Company: Chevron Corporationmore info
 - Chevron To Cut 225 Jobs In North Sea Oil Operations (Jul 16)
 - Chevron Expects Second-Quarter Profit To Rise (Jul 10)
 - Chevron Leaves Lithuania As Shale Gas Prospects Remain Uncertain (Jul 8)
 Company: Rosneftmore info
 - Rosneft Closes Weatherford Rigs Deal (Aug 1)
 - Russia's Rosneft, North Atlantic Drilling In $4.25B Drilling Deal (Jul 30)
 - Paper: Russia's Sechin Proposes Profit-based Tax for Oil (Jul 28)

Most Popular Articles