Hopefully this atrocity will help to convince Putin that the game is up, since he has far too much to lose by supporting rebels in Eastern Ukraine. Reputational damage alone is massive, and then there is the financial fallout of sanctions which were becoming onerous even before the downing of MH 17.
Russian separatists appear to be responsible for the Soviet Sam missile attack that blew Flight MA17 out of the sky. This is going to effect US/Russian Relations/Sanctions Big Time, other considerations will pale into insignificance.
BP has signed an agreement with Egypt to invest $10 billion in the exploration of the country's gas fields, which are estimated to contain 5 Tcf of natural gas reserves. According to Egyptian news source Al-Ahram, the $10 billion will be invested over the next 4-5 years.
The deal had been stalled for three years in the wake of social, political and economic turmoil that the country has experienced persistently since the 2011 Arab Spring.
Here we go again, applying sanctions that hurt everyone except themselves, when will Europe get a grip with American companies using 'Transfer Price' policy for their companies having European/Asian subsidiaries to avoid paying full tax in those countries and then diverting the profits back to the parent company..If sanctions should be in place they they should effect the US too... They are just greedy, loudmouth idiots who need to be brought to heel by the rest of the world (If they are informed that it exists) - then it would be a better world - End of rant....
Internal news News & stories Staff announcements External News Rumaila set for two billion barrels [dimos2] - Published On 16 July 2014
Iraq's oil minister has visited the Rumaila oilfield as BP and partners prepare to produce the two billionth barrel of oil since signing a contract to redevelop the field in 2009.
BP is working at Rumaila, the world's second largest oilfield, in a consortium with the China National Petroleum Company (CNPC) - or PetroChina - and Iraq's State Oil Marketing Organization (SOMO). The consortium, known as the Rumaila Operating Organization, signed a 20 year contract to boost production from the field in 2009.
Abdul Kareem Luaibi, Minister of Oil for Iraq, said: "The Ministry of Oil highly appreciates the great efforts exerted by the employees of BP, PetroChina and South Oil Company who took part in the achievement of this volume of production, values their persevering work to achieve further increases and encourages them to achieve more progress and success as real partners to develop the Iraqi oil sector."
Such deals have raised billions of dollars for Rosneft, which borrowed $30 billion in two separate loans in 2012 and 2013 to help finance last year's $55 billion acquisition of TNK-BP. In addition to BP and Glencore, Rosneft has done deals with big global traders Vitol and Trafigura as well.
With pressure over Ukraine mounting, however, some energy companies had already begun discussing a possible switch to using other currencies to settle the transactions. While oil is typically priced in U.S. dollars, in theory deals can be settled in any currency the counterparties agree on.
Some firms had also begun to back away from dealing with Rosneft. Part state-owned lender Lloyds Bank pulled out of a $2-billion prepayment facility with Rosneft announced last month to avoid embarrassing the UK government, bankers had said.
"I think the Obama Administration is trying to squeeze Rosneft against continuing to go to the Exxons and BPs and asking for loans," said Amy Jaffe, international energy policy expert at University of California, Davis. "Eventually, everything that limits a big state oil company's access to financing would have an effect on production, just not right away." (Reporting by Joshua Schneyer and Ed McAllister; Editing by Jonathan Leff and Ken Wills)
The latest sanctions "could have been a lot worse," Douglas Jacobson, an attorney at Jacobson Burton in Washington and sanctions expert. "The sectoral sanctions list is extremely narrow in terms of parties and what it prohibits."
Obama told reporters the measures were "significant" but also "designed to have the maximum impact on Russia while limiting any spillover effects on American companies or those of our allies".
Thus far, Washington's sanctions have had only a limited impact on the Russian energy industry, a cornerstone of the country's $2-trillion economy, resulting mostly in higher borrowing costs for domestic companies.
Even as the pressure has mounted over recent months, executives from Total, BP, Statoil and ExxonMobil have all visited Russia, underlining the importance they attach to business with the world's leading oil producer with current output of around 10.5 million barrels per day (bpd). Rosneft alone pumps about 40 percent of that.
Experts said that Rosneft's business partners would not likely be in danger of falling foul of the sanctions.
The latest effort "will limit the sources from which Rosneft can get financing and thus raise the cost of capital for the firm," according to Jason Bordoff, director of the Center on Global Energy Policy at Columbia University and a senior White House energy adviser until late 2012.
"It does not prohibit U.S. firms from doing business with Rosneft or bar Russian energy supplies from flowing into the global market."
Sechin, speaking at a BRICs meeting in Brasilia, said the sanctions would not affect Rosneft's current project with ExxonMobil, but would damage the shareholders of U.S. companies cooperating with Rosneft.
Exxon has a $10 billion joint venture with Rosneft off the Pacific island of Sakhalin producing over 100,000 bpd. A spokesman for the company declined to comment.
A spokesman for BP, which has a 20 percent stake in Rosneft and a number of large joint exploration projects, said the company was considering implications of the new sanctions, but had no additional comment at this point.
A spokesperson for Schlumberger NV, which drills with Rosneft on the Russian island of Sakhalin, was not immediately available to comment.
Chevron has a stake in a Russian pipeline and last fall inked a $10 billion deal to develop Ukrainian shale.
"We are reviewing the sanctions to ensure strict compliance with the law and we continue to monitor events," Chevron spokesman Kent Robertson said.
PRE-PAID OIL DEALS?
A larger question may be Rosneft's more than $15 billion worth of oil-related finance arrangements known as pre-payment deals, in which loans are repaid through future oil supplies.
Such deals have raised billions of dollars for Rosneft, which borrowed $30 billion in two separate loans in 2012 and 2013 to help finance last year's $55 billion acquisition of T
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