Seeking Alpha

Rosneft to drill Norway Arctic well with Statoil despite sanctions

  • Rosneft (OTC:RNFTF) is preparing to drill its first well offshore Norway with Statoil (NYSE:STO) even as Russia and its biggest oil company face sanctions over the conflict in Ukraine.
  • STO, which says the well is complaint with sanctions, says it got consent from authorities to drill at the Pingvin prospect in the Barents Sea and will spud the well this weekend; STO is the operator with a 40% stake, while Rosneft has 20%.
  • STO has signed deals with Rosneft to explore blocks in Russia’s Barents Sea and the Sea of Okhotsk, as well as pilot projects for heavy oil in Siberia and shale oil in the Samara region.
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Comments (6)
  • Veritas1010
    , contributor
    Comments (2074) | Send Message
     
    While XOM can dodge The Bears claws, STO realistically can't.

     

    Geo-politics can wreak havoc on the best laid plan of (corporate) mice and men.

     

    For all us investor, to be forewarned and vigilant is be forearmed...

     

    disc.:long STO, XOM.
    15 Aug 2014, 02:28 PM Reply Like
  • Grant Payne
    , contributor
    Comments (331) | Send Message
     
    I hold some XOM as well. I also have BP. While BP's situation is rough because Rosneft is not an easy friend / stake to have right now, I think it'll pay off well in the long run for BP.

     

    When the Ukraine military fighting is a distant memory, BP's stake in Rosneft will appreciate in value in proportion to the smoothing over effect that the fog of time has.
    15 Aug 2014, 04:14 PM Reply Like
  • Veritas1010
    , contributor
    Comments (2074) | Send Message
     
    We hope Granters your optimism is well founded...
    16 Aug 2014, 08:22 AM Reply Like
  • Grant Payne
    , contributor
    Comments (331) | Send Message
     
    Russia has bullied the former Soviet states since the break up of the USSR, like Georgia, and Chechnya. The West never went to war over those incidences, wrong as it was and is. This time is a bit different because the Ukraine was going to be brought into the fold of NATO. I guess we'll see how far the West will go to protect a potential ally.

     

    I suppose my optimism is grounded in the fact that WW3 won't be starting over the fate of the Ukraine.
    31 Aug 2014, 12:54 PM Reply Like
  • Veritas1010
    , contributor
    Comments (2074) | Send Message
     
    No, certainly not. But, history is usually like a stream and one can make an argument that important events if not directly related form an almost invisible thread of causality.

     

    While prima facie, the Ukraine like Georgia are not the smoking guns that will mandate response-counter-respo... Yet, taken collectively they can in time demonstrate a concatenation that leads to a new Cold War and the possibility of direct military confrontation.

     

    Every serious historical story usually have more linked events ("antecedents") behind whatever served as the obvious 'trigger', whether it the Arch Duke's assignation slightly over 100 years ago leading to WWI, or Germany's invasion of Poland on September 1, 1939 - or Pearl Harbor subsequently thereafter. One could argue the dangerous circumstances in the Ukraine have just the type of anticipatory set that outlines conflict upon the world stage.
    1 Sep 2014, 04:53 PM Reply Like
  • saratogahawk
    , contributor
    Comments (2491) | Send Message
     
    As I have been saying all along. The EU will not slow down Rosneft. STO cannot afford to fall out of the E&P race in the Arctic. It already has lost some speed this year and may continue to do so. My money is on Rosneft moving as quickly as possible to seize on its new MOUs and agreements (more than 50 recent agreements) including investment in NADL. NADL is now my No. 1 growth stock choice for the next few years. 6 rigs now, 9 very soon, and probably hundreds of potential rig years for contract by the early 2020s.
    16 Aug 2014, 12:17 PM Reply Like
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