Subscribe free to our newsletters via your
. 24/7 Space News .

Rosneft cedes East Siberian oil fields to China
by Staff Writers
Moscow (AFP) Oct 18, 2013

Argentines urge Greenpeace activists' release
Buenos Aires (AFP) Oct 18, 2013 - Around 100 protesters staged an action at a Shell gas station in Argentina on Friday, demanding Russia release 30 Greenpeace activists jailed after protesting the oil giant's Arctic drilling operations.

Four demonstrators scaled the station's roof in Buenos Aires, while 30 of them wore handcuffs to express solidarity with the 28 activists and two freelance journalists who are under arrest in Russia.

"Camila and Hernan, prisoners of the oil companies," read a banner in support of Camila Speziale, 21, and Hernan Perez Orsi, 40, two Argentines in Russian custody.

The Russian authorities charged the 30 Greenpeace members with piracy, which carries a maximum sentence of 15 years.

They were aboard Greenpeace's "Arctic Sunrise" ship when they staged a protest against Shell's oil drilling in the Russian Arctic last month.

The activists from 18 countries have been placed in pre-trial detention in the port city of Murmansk in northwest Russia, where their lawyer has said they must endure "inhuman conditions."

"The real crime is to drill for oil in the Arctic and continue to use fuels that cause climate change," said Hernan Nadal, Greenpeace's director for public action in Argentina.

Friday's protest was part of a global day of action, with demonstrators in 36 cities calling for the activists' release.

Russia's top oil producer Rosneft signed a memorandum on Friday giving the world's largest crude importer China its first direct access to energy-rich East Siberian fields.

The preliminary agreement with China National Petroleum Corp (CNPC) aims to help Rosneft meet the terms of a $270-billion deal signed in June that doubles Russia's oil exports to its giant neighbour over 25 years.

It also underscores the accelerating shift of Russia -- the world's biggest combined producer of oil and natural gas -- from its traditional markets in Europe to regions in Asia with exploding consumption and energy needs.

"It is logical for Rosneft to be expanding in the direction where there is growth," said VTB Capital energy analyst Alexander Kirevnin.

Analysts believe that state-owned Rosneft -- the world's largest listed oil firm by output -- needs to make huge investments in its untapped East Siberian deposits to meet outsized Chinese demand.

The agreement announced by Rosneft on Friday will give the Russian firm a 51-percent stake and CNPC a 49-percent holding in a joint venture for upstream developments.

The venture will begin by expanding production at the Srednebotuobinsk field that Rosneft acquired fully on Monday and which sits close to the ESPO pipeline running across Eastern Siberia to China.

"The memorandum is another step in developing the strategic partnership between Rosneft and CNPC in various areas of cooperation," Rosneft chief executive Igor Sechin said in a statement.

"Our balanced strategic position will enable us to jointly develop and produce hydrocarbons, execute long-term supplies, jointly construct refining capacity and manage various assets," said Sechin.

Russia had previously resisted giving China direct stakes in its oil fields and instead preferred to strike long-term contracts in exchange for loans.

The deal signed in June in the presence of Russian President Vladimir Putin and Chinese Vice Premier Zhang Gaoli saw Rosneft receive a $70-billion upfront payment from CNPC for its promise to raise exports to by 300,000 barrels per day.

Rosneft said the Srednebotuobinsk field holds about 134 million tonnes of oil and gas condensate. The deposit is also believed to contain more than 155 billion cubic metres of gas.

Yet China's demand for energy stretches far beyond the resources now available in East Siberia -- a region left untapped by the Soviet Union and requiring massive investments by Rosneft at a time when it can ill afford to assume further debt.

Rosneft this spring closed a $55-billion takeover of its private Anglo-Russian rival TNK-BP and has also made acquisitions aimed at expanding its natural gas portfolio.

The big moves promoted Fitch Ratings on Friday to downgrade Rosneft's long-term foreign and local currency debt ratings to 'BBB-' from 'BBB'.

Fitch said that state support made Rosneft's outlook more stable than that of rivals with similar debt obligations.

But it still expressed worry that lags in the global economy may make it difficult for the firm to repay $38 billion in obligations maturing by 2015.

The Russian firm's hesitancy to assume still more risk means that CNPC will be responsible for financing most of the East Siberian development work.

But China's largest oil company has been eagerly seeking new investments in Russia -- seen as a stable source of energy against the backdrop of volatility in Africa and the Middle East.

CNPC in June also struck a deal to acquire a 20-percent stake in a liquified natural gas project in the Russian Arctic known as the Yamal LNG.

"China is Russia's most important economic partner," said Valery Nesterov of Sberbank CIB.

"Russia needs to expand its exports to China. And Russia needs Chinese investments in order to finally start developing our stagnating East Siberia and Far East."


Related Links
Powering The World in the 21st Century at

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Romanians protest Chevron fracking plans
Pungesti, Romania (AFP) Oct 19, 2013
Around 1,000 protesters rallied Saturday in the northeastern Romanian village of Pungesti against plans by US energy giant Chevron to drill for shale gas. The protesters, including villagers in national dress, chanted "Chevron, go home" and "We say no to shale gas." Chevron on Thursday suspended activities in the region after three days of protests. But villagers have continued to oc ... read more

Crowdfunded Lunar Spacecraft Reaches Funding Milestone

LADEE Continues To Settle Into Operational Lunar Orbit

NASA's moon landing remembered as a promise of a 'future which never happened'

Russia could build manned lunar base

India sets November 5 for Mars mission launch

MAVEN Launch Preps on Schedule

Phobos-Grunt-2: Russia to probe Martian moon by 2022

Russian scientists set sights on space

NASA strives to tame 'big data' flowing in from dozens of missions

Chinese no longer banned from NASA astronomy meet

'Pillownauts' spend 3 weeks in bed as part of astronaut studies

Who's the ace among aces?

Is China Challenging Space Security

NASA's China policy faces mounting pressure

Ten Years of Chinese Astronauts

NASA vows to review ban on Chinese astronomers

Cygnus cargo craft leaves international space station

Cygnus cargo craft readies to leave space station

Aerojet Rocketdyne Thrusters Help Cygnus Spacecraft Berth at the International Space Station

First CASIS Funded Payloads Berthed to the ISS

Astrium awarded three new contracts by ESA for Ariane 6 and Ariane 5 ME launchers

Sounding Rocket Calibrates NASA's SDO Instrument

Russia Readies Proton Rocket for October 20 Launch

Sunshield preparations bring Gaia closer to deep-space Soyuz launch

Count of discovered exoplanets passes the 1,000 mark

Iowa research team see misaligned planets in distant system

Astronomer see misaligned planets in distant system

Water discovered in remnants of extrasolar rocky world orbiting white dwarf

NSF Awards $12 Million to SDSC to Deploy "Comet" Supercomputer

Rice scientists create a super antioxidant

Cracked metal, heal thyself

'Walking droplets'

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement