Russia offers India stakes in Siberian oilfields

Discussion in 'Economy & Infrastructure' started by AVERAGE INDIAN, Oct 9, 2014.

  1. AVERAGE INDIAN

    AVERAGE INDIAN EXORCIST Senior Member

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    Rosneft offers ONGC 10 pct stake in Vankor - sources

    * Offers up to 49 pct stake in Yurubcheno-Tokhomskoye- sources

    * Putin plans New Delhi visit in December

    By Nidhi Verma

    NEW DELHI, Oct 8 (Reuters) - Rosneft has offered stakes in its two east Siberian oilfields to India's Oil and Natural Gas Corp, two Indian sources with direct knowledge of the matter said, as the sanctions-hit Russian company looks beyond Western firms to develop its vast resources.

    The sanctions imposed on Russia by the United States and Europe to punish Moscow for its incursion into Ukraine, have cut Rosneft's access to Western financing and technology.

    Rosneft has offered an up to 49 percent stake in Yurubcheno-Tokhomskoye and 10 percent share in Vankor field to the state-run ONGC, said the source familiar with the discussions.

    "They need money and want to hire partners. They want to demonstrate to the U.S. and Europe that there are partners available for them," said one of the sources.

    ONGC would firm up its decision on participation in the two projects before the planned visit of Russian President Vladimir Putin to Delhi in December, this source said, adding the two fields are in geologically challenging areas.

    The European Union has imposed sanctions on Russia's finance, defence and energy sectors and has frozen the assets of some 140 Russian and Ukrainian individuals and companies over Moscow's role in Ukraine.

    The sources declined to be identified because of the sensitivity of the matter.

    Rosneft declined to comment.

    Rosneft's chief Igor Sechin, a close ally of Putin, has been on the U.S. sanctions list since April. Rosneft itself was added to the list in July.

    Production at Yurubcheno-Tokhomskoye will start in 2017. The field is to supply Asian markets via the East Siberia-Pacific Ocean pipeline and feed a yet-to-be-built petrochemical plant in Russia's Far East.

    In a major about-turn, given the Kremlin's long resistance to allow its powerful neighbour access to such deposits, Putin last month said he welcomed the idea of China joining the prized Vankor field.

    Vankor project is vital for Rosneft to meet its growing commitments to supply Asian markets, above all China.

    Rosneft is preparing to more than double oil exports to China to over 1 million bpd, seeking to secure market share and billions of dollars in pre-payments. (Additional Reporting by Vladimir Soldatkin in MOSCOW, editing by William Hardy)

    Russia offers India stakes in Siberian oilfields- sources | Reuters
     
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  3. Ashutosh Lokhande

    Ashutosh Lokhande Senior Member Senior Member

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    would be intresting to see Indias decision to side with russ or with US. It would be very difficult for india to remain non alligned for long.
     
  4. Sylex21

    Sylex21 Regular Member

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    India has already backed Russia publicly in a situation where saying nothing is considered support for Russia. India can have its cake and eat it too. There is nothing preventing India from becoming closer to both nations. In the past the USA had a "with us or against us" policy during the cold war and honestly India would have been better served loudly declaring for the USA. Now however things have changed and India is too big and too powerful to ignore and from the perspective of the USA and China a powerful swing state that can easily shift the balance of power between the two.

    India has politically, economically, and geostrategically much more in common with the USA and so opportunities to show them support will be far more numerous than to Russia. Russia is also likely to be far more apprehensive about seeing India become closer to the USA and so politically it would be much wiser for India to make its continued support and alliance with Russia very public and blatant. The USA will have to get over it and forgive, but Russia who is already sensitive is much more at risk for hurt feelings and harmed relations. Not to mention India still has a debt of friendship to repay to Russia for 1971.
     
  5. jouni

    jouni Senior Member Senior Member

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    Russia is getting desperate, oil fields are far away and it needs financing and expensive drilling tech to get the oil. Oil prices are falling and cheap shale oil is flooding the market.
     
  6. pmaitra

    pmaitra Moderator Moderator

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    I'd prefer to replace Saudi oil with Russian oil. Russia does not use its oil revenues to harm India. Saudi uses its oil revenue to fund Wahhabi nutjobs who are hell bent on creating mayhem.

    Once there is one less customer for Saudi oil, it will bring down oil prices, and it will also benefit US, which imports a lot of oil. So, it is a win-win situation for everyone.

    India also trades with Kazakhstan, Canada, Australia, Sudan, South Sudan on energy (oil, Uranium). India should maintain good relations with all countries, and this "with us or against us" policy won't work with India, as correctly pointed out by @Sylex21.
     
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  7. rock127

    rock127 Maulana Rockullah Senior Member

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    What about Logistics to bring oil to India?
     
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  8. pmaitra

    pmaitra Moderator Moderator

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    Almost same as bringing Uranium from Kazakhstan or oil from Canada. The shipping costs do not make a big difference. However, it is more convenient with transport oil via a pipeline.

    Let me give you one example:
    The quality of Australian coal is better than the coal produced in Asansol, a city in West Bengal. The coal in Asansol has to be processed to be of high grade for use in thermal power plants. Counting all costs, Australian coal is cheaper.
     
  9. ninja85

    ninja85 Regular Member

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    india not going to side any where,say something if you really have something to say this is non-sense.
     
  10. Ashutosh Lokhande

    Ashutosh Lokhande Senior Member Senior Member

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    i already said what i wanted to say. your lack of ability to understand is not my fault.
     
  11. tramp

    tramp Senior Member Senior Member

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    Exactly the US plot... to weaken Russia by pumping oil like there is no tomorrow and cutting off all western contacts... Of course the West Asian allies of US are bruised as well... the oil price is now hovering around whistling distance of distress zone. For some it is already below budget comfort.
    India will have to weight its options carefully.
     
  12. jouni

    jouni Senior Member Senior Member

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    I think Russia has budgeted 100 $ per barrel in the budget. It is already suffering.
     
  13. tramp

    tramp Senior Member Senior Member

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    No idea what Russia's budget comfort line is... but the lowest is perhaps Kuwait's $55 and Suadi Arabia's $65.... the other Gulf countries have much higher oil redlines.

     
  14. pmaitra

    pmaitra Moderator Moderator

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    Once Russia de-dollarizes its energy exports, we shall see who is suffering. A Harvard degree in economics might get one into a position to print lots and lots of paper currency, but it won't be able to change the basic postulates of mathematics.

    Russia is already planning to trade with PRC in RMB. Russia also has signed an oil-deal with Iran. So, Iranian oil will be sold by Russia. If anybody wants to question Russia as to where that oil came from, Russia will simply respond with something like this - "Don't lose sleep over whether this is Russian oil or Iranian oil. Pay the money, take the oil."

    There was a time when India had a Rupee-Rouble trade with the USSR. That might also return. With BRICS making a small but noticeable effort at using the SDR as the standard, and not the Dollar, I suppose the desperation, as expected is coming from a country other than Russia.

    On a side note, call it a coincidence if you will, the Civil War in Syria started right after Syria tied its currency to SDR.
     
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  15. tramp

    tramp Senior Member Senior Member

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    Yes, you hit the nail in the head... and Saddam Hussein was among the first to move out of dollar trade and the rest is history. The so-called axis of evil was originally the countries that denounced the dollar.

     
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  16. pmaitra

    pmaitra Moderator Moderator

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    And Gaddafi was planning to launch his pan-African Gold Dinar.

    His deputy, Musa Kusa, accused of war crimes, was given asylum by Britain, because, he got a lot of Gaddafi's gold into Britain.

    Britain is the final refuge of all criminals, fraudsters, and money launderers from around the world, as long as they bring the stolen money into Britain. Stealing is the national character of the British Government. After having looted India for centuries, they cannot shake it off, can they? Old habits die hard.

    Britain also gave asylum to Boris Berezovsky, another guy who stole and laundered money and state properties in Russia, and destroyed the Auto-VAZ company, despite there being a high demand for its products.

    P.S.: Not saying all Brits are thieves, but they are, IMHO, the exception.
     
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  17. jouni

    jouni Senior Member Senior Member

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    You got so great theories, why not make money from them. Contact George Clooney and help him make Syriana Part 2, first one was a great film.
     
  18. pmaitra

    pmaitra Moderator Moderator

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    Who are you talking to?
     
  19. jouni

    jouni Senior Member Senior Member

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    To the world
     
  20. Razor

    Razor CIDs from Tamilnadu Senior Member

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    You have watched too many Hollywood movies, haven't you ? :lol:

    It's up to America to save the world. :yey:
    ------------

    On topic, India must jump on the opportunity, diverting funds away from terrorist sponsor &/or American ally: Kingdom of Saudi Arabia.
    @pmaitra : If there is a will, how soon do you reckon the BRICS nations can decouple from dollar trade to a BRIC currency ?
     
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  21. pmaitra

    pmaitra Moderator Moderator

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    The currency (in this case the Dollar) is not as important as the product we intend to buy with the currency.

    So, if the BRICS countries can produce resources and technology intensive products in a good amount within themselves and achieve a certain level of self sufficiency, that alone will give BRICS an edge. This will take at least another 20 years, in my view, which could slide, if the west tries to (which they will) put a spanner in the wheels, by spreading unrest and orchestrating "revolutions," err, I mean, if the west tries to "spread democracy."
     
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