The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Kremlin investor show attracts top oil players, but few deals

Thu, 16th Jun 2016 17:49

* Gazprom-Shell sign only significant deal

* Rosneft boss tells investors about U.S., Saudi risks

By Dmitry Zhdannikov and Katya Golubkova

ST PETERSBURG, Russia, June 16 (Reuters) - Global oilcompany chiefs showed up in force to Russia's main investor showon Thursday, but deals were slow to materialise as they blamedlow crude prices for cutting their scope to invest.

Bosses of firms such as BP and Exxon Mobil also got plentyof lecturing from their hosts about uncertainties surroundingthe U.S. presidential election and an economic overhaul in SaudiArabia, while CEOs carefully avoided mentioning sanctions stillin place on Moscow over the crisis in Ukraine.

Gazprom signed an exploratory deal with Royal Dutch Shellover the Anglo-Dutch firm's possible involvement in the Russiangas giant's $10 billion gas export project from the Baltic Sea.

Russia's Rosneft was preparing to rubber stamp a number ofpreviously agreed deals with Italy's Eni and some Indian firms.

But a generally thin deal pipeline contrasted with thebillions of dollars worth of deals that Russia, the world'slargest oil and gas exporter, used to sign at the St Petersburgeconomic forum before 2014. That year, Russia annexed Ukraine'sCrimea peninsula and backed pro-Moscow separatists in easternUkraine, incurring Western sanctions.

The deal flow appeared even smaller than it was in 2015, asoil companies around the world cut capital investments for thesecond straight year following a steep fall in oil prices.

"The oil industry has dramatically reduced its investment,"Total CEO Patrick Pouyanne told a panel with investors.

The drought of new deals comes as a setback for the Kremlin,which managed to lure back to the forum top executives from U.S.oil majors Exxon Mobil and Chevron, including Exxon CEO RexTillerson.

"If there is a U.S. official in the audience, I'm happy totoss it over to them," Tillerson said, when asked about theimpact of sanctions on his investments in Russia.

Still, local officials were on a charm offensive, sayingRussia's investment potential was rising amid uncertaintyelsewhere, particularly in the United States.

Igor Sechin, the chief of Kremlin oil major Rosneft, whichproduces more energy than Exxon, said more resources were beingdiscovered in Russia and a steep rouble devaluation was helpingcost-cutting.

Sechin, a close ally of President Vladimir Putin, alsoargued it was hard for the industry to assess prospects inRussia's top two energy rivals - the United States and SaudiArabia.

Sechin said he thought if Republican Donald Trump won theupcoming U.S. presidential election, conventional oil and gasproducers would benefit. If Democrat Hillary Clinton won, therewas likely to be less support for fossil fuels and more forgreen energy, he added.

"Given the role that the U.S. economy is playing globally,uncertainty over the development of the U.S. oil and gasindustry is increasing the risks for the global economy," Sechinsaid.

Turning to Saudi Arabia, he said it would have to go throughpainful reforms as it was only set to cut its budget deficit to$85 billion in 2016 from a record $100 billion in 2015.

Pouyanne, whose company Total has major projects in theMiddle East, said he was keen to invest both there and inRussia.

Total is an investor in the $27 billion Russian Arctic Yamalgas project which earlier this year managed to secure financingfrom Russian and Chinese banks after repeated delays.

"It was difficult ... But we continue to invest in Russiadespite sanctions ... In Russia you can find some of the lowestcost resources in the world," said Pouyanne. (Writing by Dmitry Zhdannikov; Editing by Alessandra Galloniand Mark Potter)

More News
16 Dec 2021 22:13

UPDATE 2-Royal Dutch Shell confirms delay in sale of Texas refinery to Mexico's Pemex

(Adds approval expected by Jan. 13)By Stefanie Eschenbacher and Erwin SebaMEXICO CITY/HOUSTON, Dec 16 (Reuters) - Royal Dutch Shell on Thursday confirmed a Reuters report that the sale of its controlling interest in a Texas refinery to Mexican stat...

Read more
16 Dec 2021 14:42

Latin American oil auctions kick off after two-year lull

* 11 firms registered to bid in Brazil's auction on Friday* Competition expected to be fiercest since 2018* Seven Latin American nations to hold auctions in 2022-2023By Marianna Parraga and Sabrina ValleHOUSTON, Dec 16 (Reuters) - Latin America's oil...

Read more
15 Dec 2021 12:16

Five companies seek to develop CO2 storage off Norway

OSLO, Dec 15 (Reuters) - Five companies have applied to build carbon dioxide (CO2) storage on the Norwegian continental shelf, the country's oil and energy ministry said on Wednesday.The ministry proposed in September two offshore areas, one in th...

Read more
15 Dec 2021 10:10

UPDATE 2-FTSE dips as inflation surges to 10-year high

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* IAG down on plans to cancel Air Europa acquisition* Rentokil falls for second day on M&A plans* Inflation jumped to 5.1% in Nov vs. 4.2% in...

Read more
15 Dec 2021 09:33

LONDON BROKER RATINGS: BofA starts Pod Point at Buy; Barclays cuts DCC

LONDON BROKER RATINGS: BofA starts Pod Point at Buy; Barclays cuts DCC

Read more
14 Dec 2021 09:40

LONDON BROKER RATINGS: JPMorgan raises Experian, cuts BAE Systems

LONDON BROKER RATINGS: JPMorgan raises Experian, cuts BAE Systems

Read more
13 Dec 2021 16:10

UK dividends calendar - next 7 days

UK dividends calendar - next 7 days

Read more
13 Dec 2021 11:48

Brazil's oil regulator approves Mero oilfield production agreement

SAO PAULO, Dec 13 (Reuters) - Brazilian state-run oil company Petrobras said on Monday that the country's oil regulator ANP has approved a production agreement for the Mero oilfield, deciding on which stake of its oil and gas output will be hold ...

Read more
13 Dec 2021 10:16

UPDATE 2-Energy, bank stocks drag London's FTSE 100; Omicron fears weigh

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* Purplebricks plunges after delaying results* SThree drops as CEO steps down* FTSE 100 down 0.8%, FTSE 250 off 1.2% (Updates to close)By Ba...

Read more
13 Dec 2021 07:22

Qatar Energy acquires 17% stake in Shell-operated concessions in Egypt

DUBAI, Dec 13 (Reuters) - Qatar Energy will acquire a 17% stake in two Shell-operated concessions (Block 3 and Block 4) in Egypt's Red Sea region, Shell Egypt said on Monday.Shell will remain the main operator of the concessions, Shell Egypt's st...

Read more
12 Dec 2021 14:00

Activist group targets Exxon with shareholder climate resolution

* Follow This targets Exxon for first time* Dutch group also targets other energy companiesBy Ron Bousso and Sabrina ValleLONDON, Dec 12 (Reuters) - Climate activist group Follow This targeted Exxon Mobil Corp with a shareholder resolution urging i...

Read more
10 Dec 2021 23:26

UPDATE 1-Shell restarting Louisiana refinery crude unit after repairs from Hurricane Ida -sources

(Adds no reply from company)HOUSTON, Dec 10 (Reuters) - Royal Dutch Shell Plc was restarting on Friday the crude distillation unit (CDU) at its 230,811 barrel-per-day (bpd) Norco, Louisiana, refinery after completing repairs from Hurricane Ida, sa...

Read more
10 Dec 2021 20:44

Shell restarting Louisiana refinery crude unit after repairs from Hurricane Ida -sources

HOUSTON, Dec 10 (Reuters) - Royal Dutch Shell Plc was restarting on Friday the crude distillation unit (CDU) at its 230,811 barrel-per-day (bpd) Norco, Louisiana, refinery after completing repairs from Hurricane Ida, said sources familiar with pl...

Read more
10 Dec 2021 16:57

Can we still be friends? Shell sends Dutch PM parting note

By Toby SterlingAMSTERDAM, Dec 10 (Reuters) - On the day that shareholders of Royal Dutch Shell PLC voted to move the company's headquarters to London https://www.reuters.com/markets/europe/royal-dutch-shell-plc-shareholders-set-approve-move-london...

Read more
10 Dec 2021 15:29

Belarus oil firm cancels 2022 exports to Germany after EU sanctions - traders

MOSCOW, Dec 10 (Reuters) - Belarusian oil company Belorusneft has cancelled its 2022 export plans to Germany via the Druzhba pipeline following new European Union sanctions on the company, three traders familiar with the matter said on Friday.On ...

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.