STATOIL & ROSNEFT PARTNERSHIP
STAVANGER, Norway— Statoil ASA has warned that Western countries' sanctions against Russia will slow down the process of gaining approval for some of the company's joint ventures with Russian oil group OAO Rosneft.
Norway's largest oil group said Monday that it will stand by its 27-month-old partnership with the state-controlled Russian company because it hopes diplomacy will resolve Russia's standoff with the U.S. and Europe over the crisis in Ukraine.
"This will be a more bureaucratic process, so that things will take more time," Statoil Chief Executive Helge Lund said in an interview at the Offshore Northern Seas energy conference.
Mr. Lund said not all of Statoil's joint-venture projects with Rosneft would be slowed down, as sanctions target mainly shale-, deep-water- and Arctic oil production. Statoil and its suppliers will have to apply for permission from Norwegian, European Union or U.S. authorities to export equipment and move forward with their plans, which might slow down projects, he said.
With Russia an important supplier of energy to Europe, especially natural gas, Mr. Lund said it is important to find diplomatic solutions to the crisis for energy trade to continue.
"Europe and Russia will be energy partners for many decades to come. That is fundamental," he said.
"We hope for a diplomatic solution, but of course [the imposition of sanctions] hasn't made it any easier for either Rosneft or companies working with that company and other Russian companies," Mr. Lund said. "But our aim is to continue the [Rosneft] partnership, and we hope for diplomatic solutions."
Statoil struck what it called a "milestone" cooperation deal with Rosneft in May 2012. The pact included joint onshore and offshore projects, such as licenses in the Barents Sea and the Sea of Okhotsk. In June 2013, Rosneft and Statoil were jointly awarded interests in the exploration license PL713 in the Norwegian Barents Sea, and the companies started to drill the Pingvin well earlier this month.
Mr. Lund didn't say whether Rosneft-Statoil projects in Norway would be affected by sanctions, but has previously told national media that they wouldn't, as the drilling was planned before sanctions took effect.
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IEA - For the third consecutive year, global energy investment declined, to USD 1.8 trillion (United States dollars) in 2017 – a fall of 2% in real terms. The power generation sector accounted for most of this decline, due to fewer additions of coal, hydro and nuclear power capacity, which more than offset increased investment in solar photovoltaics.
EIA - Crude oil production from the major US onshore regions is forecast to increase 143,000 b/d month-over-month in July from 7,327 to 7,470 thousand barrels/day , gas production to increase 1,066 million cubic feet/day from 69,466 to 70,532 million cubic feet/day .
U.S. FRB - Industrial production rose 0.6 percent in June after declining 0.5 percent in May. For the second quarter as a whole, industrial production advanced at an annual rate of 6.0 percent, its third consecutive quarterly increase. Manufacturing output moved up 0.8 percent in June.
U.S. DT - The sum total in May of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a net TIC inflow of $69.9 billion. Of this, net foreign private inflows were $58.8 billion, and net foreign official inflows were $11.1 billion.