Sanctions on Rosneft's Sechin cause problems for more than just BP

The newest sanctions on Rosneft's (RNFTF) Igor Sechin will muddy the waters for more companies than just BP, as other major oil companies have increased their exposure in Russia in recent years.

Exxon (XOM) struck a deal with Rosneft in 2011 to explore Russia's Arctic seas and shale in western Siberia, which could hold billions of barrels of crude; the agreement has since been expanded to include the Black Sea and an area of the Arctic bigger than Texas.

Royal Dutch Shell (RDS.A, RDS.B) has a small stake in a Caspian oil pipeline in a joint venture with Rosneft; Statoil (STO) has joint projects with Rosneft in the Russian part of the Barents Sea and the Sea of Okhotsk, which it says it is delaying due to operational factors only and not related to the tension over Ukraine.

Also, commodities trading giants Glencore (GLCNF, GLNCY), Vitol and Trafigura all have close ties with Rosneft; Glencore even lent $500M to Rosneft.

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Comments (8)
  • P. Dennis
    , contributor
    Comments (401) | Send Message
    Good! It's time to remove all restrictions on the export of hydrocarbons from the USA and move to replace Russia as Europe's primary source of natural gas. The Russian dictator's leverage over free people everywhere should be minimized and that is what is happening here. Let a truly free energy market come into being and allow LNG and other sources replace the stranglehold Russian natural gas currently has over free people in Europe.
    28 Apr 2014, 07:33 PM Reply Like
  • Upstreamer
    , contributor
    Comments (100) | Send Message
    Allowing unlimited US gas exports does not mean that tomorrow Europe will stop importing Russian gas, for the following reasons:
    1) LNG or any sort of gas export process takes years to set up
    2) US LNG will not (and can not) be cheaper than Russian gas, and market pragmatism often overcomes nationalistic sentiment.
    3) A lot of Europe is locked into long term supply contracts with Russia which cant be ripped up quite so easily.
    29 Apr 2014, 04:09 AM Reply Like
  • sonik
    , contributor
    Comments (59) | Send Message
    I like Ruslan Zakirov's comments below, always good to see things from a different perspective. No one side in this situation will be made fully aware of the others views / perspective such is the strength of the media.


    I wouldn't want a stranglehold from US or Russia, they both have their best interests at heart and nothing more. Any rehetoric or actions claiming to be for the "good of the world or other nations" is nonesense.
    29 Apr 2014, 06:03 AM Reply Like
  • Rose_Colored_Glasses
    , contributor
    Comments (1110) | Send Message
    I just don't see how this Ukraine thing has the legs to shake the economy and I think the friction should create buying opportunities. Hope the peeps come out ok - and I am on board with any honest self determination. But lets face it, Putin is going to schmooze the capitalists, and the US and Europeans really only have the will to impose milquetoast sanctions that will easily be forgotten and broken. Buy the dips and good luck to the Ukraines.
    28 Apr 2014, 09:20 PM Reply Like
  • smurf
    , contributor
    Comments (6272) | Send Message
    And Shell, BP, and Exxon are just finding out now that Putin is a gangster?
    28 Apr 2014, 10:25 PM Reply Like
  • JohnMac2002
    , contributor
    Comments (16) | Send Message
    It seems the boards of some of the oil multinationals are a little slow on the uptake Smurf. Perhaps they should talk to the widows of Alexander Litvinenko and Sergei Magnitsky, for starters.
    29 Apr 2014, 07:17 AM Reply Like
  • Ruslan Zakirov
    , contributor
    Comments (17) | Send Message
    P. Dennis,
    Just for your information - Cold war is over. At least it was over before Mr. Obama started cold war mongering again.
    The biggest assets of ExxonMobil that may be affected are giant developments offshore Russian Sakhalin. A multi-billion dollar Berkut drilling and production platform designed for 45 wells is due to depart from DSME shipyard in Korea to Russian Far East just in a few weeks. I guess, if Russia decides to nationalize the Exxon's stake in Sakhalin-1 project, you can use Exxon's shares as wall paper or burn as fuel.
    somebody has to read a lecture on global economy to Mr. Obama.
    One more thing for your information - the word "Rosneft" is made of two words: Russia and Neft (crude oil in Russian). So, where did the "stranglehold Russian natural gas" come from?
    Free your gas and enjoy the ride!
    28 Apr 2014, 11:08 PM Reply Like
  • P. Dennis
    , contributor
    Comments (401) | Send Message
    Ruslan Zakirov,


    I speak, read, and write the Russian language and do not need your condescending assistance to translate Rosneft. Mr. Obama did not initiate the new tensions between the USA and Russia at a heightened level. That was accomplished by the Dictator Vladimir Putin when he stuck a finger in America's eye by keeping Edward Snowden, a fugitive from international justice, in a safe haven so he would not have to answer felony charges in the USA.


    My expression of pleasure is not based upon the new adversarial stance between our nations because I love and respect the Russian people. Their musical, mathematical, scientific, and other talents are awe inspiring and brilliant! Sadly though, for far too long they have been led by tyrants and the billionaire former KGB Colonel in power in Moscow now is just one more of these, regardless of what he may say.


    I play chess in tournaments nationwide and often converse with Russians who have moved from there to the USA. They support Grandmaster Garry Kasparov in his efforts to remove the dictator from power and replace him with a freely elected leader for Russia who will help the Russian people to prosper and breathe the fresh air of freedom.


    Good luck in your efforts to seek Alpha!
    29 Apr 2014, 10:06 AM Reply Like
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