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The Big Trade: Russian Companies Competing for Downstream Projects and Foreign Companies Seeking to Enter Upstream Projects

The Big Trade: Russian Companies Competing for Downstream Projects and Foreign Companies Seeking to Enter Upstream Projects

As the presidential race approaches we are witnessing President Putin’s efforts to speed up the exchange of assets with oversea energy corporations. His main goal is to take the Russian producers to the multinational level and become head of the most influential player on the global energy market. It will take crafty use of the main card – hydrocarbon resources, without which no western energy company can develop.

The Russian executive administrators adhere to a simple policy that makes it harder for western firms to work in Russia or even pushes them out of production projects. In exchange, the government suggests that they should think about the ways to let Russian corporations to downstream business. Only then Russia will be open for talks on upstream projects on its soil. Another subject of negotiations is access to resources in exchange for unique technologies.

The report dwells on the following subjects

  • Conditions for the work of foreign companies in Russia

    • Impending changes to the legislation, including amendments to the Subsoil Law.
  • Successful and failed strategies of foreign companies in Russia

    • Success of the German and Italian firms and its causes.
    • Issues of BP and Shell.
    • Conoco and its easy access to LUKOIL.
    • Sakhalin wars.
    • The outlook for oversea partners in offshore production business in Russia.
  • Russian companies and their oversea plans

    • The Gazprom’s invasion in Europe and the Rosneft’s plans for China.
    • LUKOIL as the most untypical company of Russia: unveiled bet on oversea projects.
  • Political protection methods

    • The EU’s methods against the Russian corporations’ expansion.
    • Opportunities for splitting producing, transporting and energy producing companies.
  • The outlook for the hydrocarbon production industry of Russia and exchange strategies

    • Problems in the upstream segment and their possible solution via new technologies and access to target markets.

The content of the report:

Introduction 2
Chapter 1. Russian and Foreign Oil and Gas Companies Target Each Other 3
1.1. Foreign Oil Companies in the Russian O&G Industry 4
1.2. Russian Companies’ Oversea Projects 10
Chapter 2. Russian Companies in Joint Projects 12
2.1. Gazprom Heading to Europe 12
2.2. Rosneft Heading to China 21
2.3. LUKOIL Relying Solely on Oversea Projects 25
2.4. Other Russian Companies in Oversea Projects 32
Chapter 3. Foreign Companies in Upstream Projects in Russia 35
3.1. BASF and E.ON the Most Successful Partners of Gazprom 35
3.2. Italy-based ENI and ENEL – the New Favorites of Putin 38
3.3. BP – Generally Successful Crusade for Projects in Russia with Ambiguous Results 40
3.4. EXXON MOBIL – the Giant Learns by Its Own Mistakes 43
3.5. Other Foreign Firms in the Russian Upstream 46
Prospect of Assets Trade between Russian and Foreign Companies 52
Date of publicationVolume
July 2, 200753 pages

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Analytical series “The Fuel and Energy Complex of Russia”:

Outlook for Russian LNG Industry
Russian Energy and West One Year after Ukraine Conflict Began: Are There Connections Still?
Green Agenda in Russia during Bitter Conflict with West
After February 2022 the agenda was radically rewritten. Western companies began leaving Russia en masse, economic relations with the West were drastically reduced, and the Russian economy began to be pushed violently from the global economic space, hemmed in by sweeping sanctions. All that was, to put it mildly, not the best background for talking about ESG. Especially because tasks of survival and stability under unprecedented pressure became the priority in the economy. In late 2022, however, attempts to reanimate the ESG agenda already became obvious. The message is put across insistently that it is important to Russia regardless of the foreign policy situation. While earlier the “green pivot” was seen as an opportunity to attract Western investors and their technological solutions to Russia, now Keynesian reliance on domestic manufacture is discussed.
Oil and Gas Sector Regulation in 2022 and Prospects for 2023
Gazprom at the Forefront of Economic and Political Battles with Europe
Gazprom is being actively thrown out of the market. Its annual supplies to Europe have shrunk from the previous 150 billion to 65 billion cubic metres of gas. European officials assure that they have already learnt how to live without Russian gas, so they will bring its purchases down to but nominal values in 2023. Their main hope is liquefied natural gas. Today the EU must make a crucial decision: whether it has passed the point of no return in gas business with Russia and whether it is certain that its economy will endure without supplies of Russian pipeline gas. Or, on the contrary, Europe will realise after all that the gas balance will not be achieved and the payment for so headlong a rush for LNG will be disproportionate. Assessment of the potential volume of LNG that will appear on the market before the end of the current decade will be the most important factor for making the decision.

All reports for: 2015 , 14 , 13 , 12 , 11 , 10 , 09 , 08 , 07

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