Exxon (XOM) and Rosneft (RNFTF.PK) say they could spend $15B building a gas liquefaction plant...

Exxon (XOM) and Rosneft (RNFTF.PK) say they could spend $15B building a gas liquefaction plant on Russia's Pacific coast in a move to jump start the country's attempts to ship the fuel to Asian markets. The companies in February said they would study the feasibility of the plant, but the new comments provide the first indication of the scale and timing of their plans.

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Comments (2)
  • old crank
    , contributor
    Comments (20) | Send Message
    I don't like trying to do business with the Russians. What's to keep them from nationalizing your investment?
    11 Apr 2013, 02:23 PM Reply Like
  • Ron Abate
    , contributor
    Comments (21) | Send Message
    That's true with most of the countries around the world that the exploration companies need to do business. XOM has been rather successful working with the Russians. Their investment in the Sakklin Islands has worked reasonably well. I believe Tillerson negotiated that deal when he was in E&P. Tillerson knows the Russians pretty well and so far has been able to work with them. I also think that Tillerson has made a commitment to include Rosneft in some U.S. deals. That's a smart move.


    In addition, XOM possesses the engineering and huge project development expertise few other companies can equal. The Russians need this talent to develop their reserves in the most cost effective way. In addition, all developments pose substantial completion risk. Consequently, for most large oil and gas projects it is prudent financial management (risk diversification) to bring other participants into these projects to share some of that risk.
    11 Apr 2013, 10:31 PM Reply Like
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