http://www.businessinsider.com/afp-ukraine-backs-off-from-eu-backed-russia-gas-deal-2014-9
( Does Ukraine have any of the billions given by the IMF left ? )
© AFP/File Alexander ZobinUkrainian gas pipelines account for about 15 percent of all gas imported by Europe
****
http://www.zerohedge.com/news/2014-09-27/russia-discovers-massive-arctic-oil-field-which-may-be-larger-gulf-mexico
( We shall see how serious US sanctions on Russia are , once Exxon starts squealing... )
Submitted by Tyler Durden on 09/27/2014 11:52 -0400
RIA Novosti..... Gas Talks
http://rt.com/news/152680-eastern-ukraine-army-operation/
“And today we have saved lives. I think there’ll be more than 1,500 people saved. People are still dying, but the number of casualties has decreased tenfold. There’s no alternative to peace,” the president explained.
http://en.itar-tass.com/economy/751430
Tweets - 9/26 .....
( Does Ukraine have any of the billions given by the IMF left ? )
Ukraine Backs Off From EU-Backed Russia Gas Deal
© AFP/File Alexander ZobinUkrainian gas pipelines account for about 15 percent of all gas imported by Europe
Kiev (AFP) - War-torn Ukraine on Saturday distanced itself from an EU-brokered agreement with Russia that would have restored its gas supplies during winter and helped rebuild trust between the neighbouring foes.
The European Union's energy commissioner emerged from hours of acrimonious negotiations in Berlin on Friday to pronounce the three month dispute on the verge of being resolved.
"We have developed a workable design for a winter package," Guenther Oettinger said.
Both he and Russia's energy minister added that a final agreement could be signed after consultations in Moscow and Kiev next week.
A compromise would not only save the westward leaning nation from adopting drastic energy savings measures in freezing weather but also make sure that Russian gas flowed uninterrupted to European homes.
Yet the meeting came with trust between all sides lacking and any remaining good will between Moscow and Kiev dependent on the fate of a fragile truce in a pro-Russian uprising that has claimed more than 3,200 lives.
And Ukraine's top energy officials vowed on Saturday to keep fighting over both the gas price and Moscow's claim that Kiev owed it billions of dollars in debt.
"No final decision was adopted. Not a single document was signed -- period," Naftogaz state energy firm chief Andriy Kobolev wrote in a Facebook post.
****
http://www.zerohedge.com/news/2014-09-27/russia-discovers-massive-arctic-oil-field-which-may-be-larger-gulf-mexico
( We shall see how serious US sanctions on Russia are , once Exxon starts squealing... )
Russia Discovers Massive Arctic Oil Field Which May Be Larger Than Gulf Of Mexico
In a dramatic stroke of luck for the Kremlin, this morning there is hardly a person in the world who is happier than Russian president Vladimir Putin because overnight state-run run OAO Rosneft announced it has discovered what may be a treasure trove of black oil, one which could boost Russia's coffers by hundreds of billions if not more, when a vast pool of crude was discovered in the Kara Sea region of the Arctic Ocean, showing the region has the potential to become one of the world’s most important crude-producing areas, arguably bigger than the Gulf Of Mexico. The announcement was made by Igor Sechin, Rosneft’s chief executive officer, who spent two days sailing on a Russian research ship to the drilling rig where the find was unveiled today.
The oil production platform at the Sakhalin-I field in Russia,
partly owned by ONGC Videsh Ltd., Rosneft Oil Co., Exxon Mobil
Corp. and Japan's Sakhalin Oil and Gas Development Co. on June 9, 2009.
partly owned by ONGC Videsh Ltd., Rosneft Oil Co., Exxon Mobil
Corp. and Japan's Sakhalin Oil and Gas Development Co. on June 9, 2009.
Well, one person who may have been as happy as Putin is the CEO of Exxon Mobil, since the well was discovered with the help of America's biggest energy company (and second largest by market cap after AAPL). Then again, maybe not: as Bloomberg explains "the well was drilled before the Oct. 10 deadline Exxon was granted by the U.S. government under sanctions barring American companies from working in Russia’s Arctic offshore. Rosneft and Exxon won’t be able to do more drilling, putting the exploration and development of the area on hold despite the find announced today."
Which means instead of generating billions in E&P revenue, XOM could end up with, well, nothing. And that would be quite a shock to the US company because the unveiled Arctic field may hold about 1 billion barrels of oil and similar geology nearby means the surrounding area may hold more than the U.S. part of the Gulf or Mexico, he said.
For a sense of how big the spoils are we go to another piece by Bloomberg, which tells us that "Universitetskaya, the geological structure being drilled, is the size of the city of Moscow and large enough to contain more than 9 billion barrels, a trove worth more than $900 billion at today’s prices."
The only way to reach the prospect is a four-day voyage from Murmansk, the largest city north of the Arctic circle. Everything will have to shipped in — workers, supplies, equipment — for a few months of drilling, then evacuated before winter renders the sea icebound. Even in the short Arctic summer, a flotilla is needed to keep drifting ice from the rig.
Sadly, said bonanza may be non-recourse to Exxon after Obama made it quite clear that all western companies will have to wind down operations in Russia or else feel the wrath of the DOJ against sanctions breakers. Which leaves XOM two options: ignore Obama's orders (something which many have been doing of late), or throw in the towel on what may be the largest oil discovery in years.
And while the Exxon C-suite contemplates its choices, here is some more on today's finding from Bloomberg:
“It exceeded our expectations,” Sechin said in an interview. This discovery is of “exceptional significance in showing the presence of hydrocarbons in the Arctic.”The development of Arctic oil reserves, an undertaking that will cost hundreds of billions of dollars and take decades, is one of Putin’s grandest ambitions. As Russia’s existing fields in Siberia run dry, the country needs to develop new reserves as it vies with the U.S. to be the world’s largest oil and gas producer.Output from the Kara Sea field could begin within five to seven years, Sechin said, adding the field discovered today would be named “Victory.”
Duh.
The Kara Sea well -- the most expensive in Russian history -- targeted a subsea structure named Universitetskaya and its success has been seen as pivotal to that strategy. The start of drilling, which reached a depth of more than 2,000 meters (6,500 feet), was marked with a ceremony involving Putin and Sechin.The importance of Arctic drilling was one reason that offshore oil exploration was included in the most recent round of U.S. sanctions. Exxon and Rosneft have a venture to explore millions of acres of the Arctic Ocean.
But what's worse for Exxon is that now that the hard work is done, Rosneft may not need its Western partner much longer:
“Once the well is plugged, there will be a lot of work to do in interpreting the results and this is probably something that Rosneft can do,” Julian Lee, an oil strategist at Bloomberg First Word in London, said before today’s announcement. “Both parties are probably hoping that by the time they are ready to start the next well the sanctions will have been lifted.”
And here is why there is nothing Exxon would like more than to put all the western sanctions against Moscow in the rearview mirror: "The stakes are high for Exxon, whose $408 billion market valuation makes it the world’s largest energy producer. Russia represents the second-biggest exploration prospect worldwide. The Irving, Texas-based company holds drilling rights across 11.4 million acres in Russia, only eclipsed by its 15.1 million U.S. acres."
Proving just how major this finding is, and how it may have tipped the balance of power that much more in Russia's favor is the emergence of paid experts, desperate to talk down the relevance of the Russian discovery:
More drilling and geological analysis will be needed before a reliable estimate can be tallied for the size of the oil resources in the Universitetskaya area and the Russian Arctic as a whole, said Frances Hudson, a global thematic strategist who helps manage $305 billion at Standard Life Investments Ltd. in Edinburgh. Sanctions forbidding U.S. and European cooperation with Russian entities mean that country’s nascent Arctic exploration will be stillborn because Rosneft and its state-controlled sister companies don’t know how to drill in cold offshore conditions alone, she said.“Extrapolating from a small data sample is perhaps not going to give you the best information,” Hudson said in a telephone interview. “And because of sanctions, it looks like there’s going to be less exploration rather than more.” In addition, the expense and difficulty of operating in such a remote part of the world, where hazards include icebergs and sub-zero temperatures, mean that the developing discoveries may not be economic at today’s oil prices.
Maybe. Then again perhaps the experts' time is better suited to estimating just how much longer the US shale miracle has left before the US is once again at the mercy of offshore sellers of crude.
In any event one country is sure to have a big smile on its face: China, since today's finding simply means that as Russia has to ultimately sell the final product to someone, that someone will almost certainly be the Middle Kingdom, which if the "Holy Gas Grail" deal is any indication, will be done at whatever terms Beijing chooses.
RIA Novosti..... Gas Talks
Next Trilateral Talks Over Gas to Take Place Between Russia, Ukraine, EC in October: TV
Topic: Russia-Ukraine Gas Conflict
Members of the Russian delegation at the gas talks in Berlin.
© REUTERS/ Thomas Peter
18:56 27/09/2014
Related News
Prodan: Ukraine, Russia Disagree on Gas Payment Schedule, Final Deal Still on Table- Novak: EU, World Bank Could Act as Guarantors for Ukraine Gas Debt Payments
- Russian Energy Minister: Russia Could Give Ukraine $100 Gas Price Discount for Six Months
- Russia to Hold Direct Talks with Ukraine on Gas Issue: European Energy Commissioner
- Russia Could Deliver Gas to Ukraine at $385 Per 1,000 Cubic Meters: Energy Commissioner
MOSCOW, September 27 (RIA Novosti) - The next trilateral talks between Russia, Ukraine and the European Commission over the standing issues surrounding gas will take place on October 2 or 3, Aleksander Novak, Russia's Minister of Energy, stated.
"First, we are currently drawing up the proposals that were presented to all the parties for uniform understanding. Sometimes it happens that what is understood orally is interpreted in writing somewhat differently. This will be done in the next few days. The Ukrainian side, the Russian side and the European Commission will each receive it [the written agreement]. We have agreed that we will meet to discuss the final package either Thursday or Friday next week,"- Novak said in an interview with the TV channel Russia-24.
What is to be decided upon is the supply of five billion cubic meters of gas within half a year and with a possible increase in volume. The temporary price for 1,000 cubic meters of gas will be $385 for this period.
In an interview with Russia-24, Aleksei Miller, Head of Russia's Gazprom, stated that upon the close of the trilateral talks in Berlin it became evident that the positions of the sides diverted when it came to Ukraine paying off the gas debt, currently standing at $5.3 billion.
According to Miller, Russia continues to insist that Ukraine first pay off $2 billion from the total debt in October. Only then will Gazprom be able to immediately commence gas supplies to Ukraine. He also added that another $1.1 billion Ukraine has to clear by the end of the year and that the sum of the $3.1 billion was presented to Ukraine by theInternational Monetary Fund (IMF).
In the meantime, Ukraine's Minister of Energy Yuri Prodan said that Ukraine would first make an advance payment for the future five billion cubic meters of gas constituting $1.9 billion. Another $1.5 billion, as part of the debt, Ukraine will pay off at the end of October, followed by $800 million in November and December each for the unsettled debt.
On September 26, the sides met in Berlin to discuss the existing issues relating to gas. According to preliminary arrangements, Russia and Ukraine will have to sign the so-called winter package of documents on Russian gas supplies to Ukraine that were cut off in mid-June.
http://rt.com/news/152680-eastern-ukraine-army-operation/
Thursday, September 25
00:51 GMT:
The authorities in Kiev did not give orders to use weapons against civilians in the east of the country. Ukraine's Prime Minister Arseny Yatsenyuk said in New York, as the death toll in Ukraine's conflict soared past 3,000, according to top UN human rights official Ivan Simunovic.
Answering a question from Human Rights Watch as to why Kiev used artillery and other weapons against civilians in the east of the country, Yatsenyuk said that "the army did not give such an order."He also claimed that the Ukrainian authorities "are ready to start an investigation, if anyone has any information about these cases," and suggested HRW send evidence to the authorities in Kiev.
Wednesday, September 24
18:28 GMT:
Russia's Defense Ministry has denied statements about the alleged presence and further "significant" withdrawal of Russian troops from Ukraine – the information earlier provided by NATO spokesman Lt Col Jay Janzen.
Referring to the fact that an "official statement" was sent to Reuters from a private e-mail, Russian Defense Ministry representative Major General Igor Konashenkov said there is a "tendency of further lowering" of status of NATO spokespersons.
"I guess future anti-Russian statements under NATO’s name should be expected from cleaning company representatives, which provides cleaning service for the headquarters – and in the form of SMS mass delivery," Konashenkov said.
16:51 GMT:
About 300,000 Ukrainians who have come to Russia have asked for temporary asylum status or a temporary residence permit, the head of Russia’s Federal Migration Service said Wednesday. Talking about residents of Eastern Ukraine, Konstantin Romodanovsky said at a meeting with Prime Minister Dmitry Medvedev: “We have registered over 2.8 million border crossings since April 1… Now there are over 875,000 residents of Lugansk, Donetsk, these regions, in the Russian Federation.”
13:48 GMT:
NATO has noticed a significant withdrawal of Russian forces from inside Ukraine, bloc military spokesman Lieutenant-Colonel Jay Janzen told Reuters. However, it has been observed that many Russian forces remain stationed in the vicinity, he added.
"There has been a significant pullback of Russian conventional forces from inside Ukraine, but many thousands are still deployed in the vicinity of the border," Lieutenant-Colonel Jay Janzen said in an email to Reuters.
Janzen said there appeared to be a reduction in incidents, including artillery fire, between Ukrainian forces and self-defense fighters.
On September 4, one of NATO’s top brass said Russia had a few thousand combat troops and hundreds of tanks and armored vehicles inside Ukraine, and around 20,000 troops near the Ukrainian border.
A week ago, NATO said it believed Russia still had around 1,000 soldiers inside Ukraine.
Tuesday, September 23
17:55 GMT:
The number of people killed in the Ukraine conflict has exceeded 3,500 people, UN Assistant Secretary-General for Human Rights Ivan Simonovic said, the Itar-Tass news agency reported. A total of 3,543 people have died, including the 298 victims of the Malaysian Airlines MH17 plane crash in eastern Ukraine.
“The actual number may be significantly higher,” Itar-Tass quoted Simonovic as saying.
On September 8, the UN estimated the number of killed was 2,729, not including the MH17 plane crash victims.
Monday, September 22
21:02 GMT:
The World Health Organization (WHO) has handed out the first tranche of humanitarian assistance in the amount of $170,000 to Ukraine, the country’s Ministry of Health reports.
The WHO aid is aimed at offering necessary medicine and medical devices to those who have suffered during the fighting in Donetsk and Lugansk regions. In addition, some aid will go to Dnipropetrovsk, Kharkov, the Zaporozhzhya region, and Kiev. The next tranche of aid from the WHO is expected to arrive on September 25.
The WHO aid is aimed at offering necessary medicine and medical devices to those who have suffered during the fighting in Donetsk and Lugansk regions. In addition, some aid will go to Dnipropetrovsk, Kharkov, the Zaporozhzhya region, and Kiev. The next tranche of aid from the WHO is expected to arrive on September 25.
20:17 GMT:
In a telephone conversation, Russian President Vladimir Putin and UN Secretary-General Ban Ki-moon discussed the situation in the east of Ukraine and praised the Minsk ceasefire agreement, the Kremlin said, adding that both sides “expressed readiness to fully support the consolidation of the peace process.”
16:18 GMT:
Over 180,000 Ukrainians have applied for refugee status and permission for temporary asylum in Russia, Konstantin Romodanovsky, head of Russia's Federal Migration Service has said, adding that Russia is ready to accept all Ukrainians seeking refuge.
According to the official, 110,000 Ukrainian citizens have already received asylum in Russia, and from 5,000 to 9,000 people a day continue to flee Ukraine and arrive in Russia's Rostov region.
11:12 GMT:
In accordance with the Minsk Memorandum, Ukrainian troops are preparing to retract heavy armaments 15km from their previous positions, a spokesman for Ukraine’s National Security and Defense Council, Andrey Lysenko, informed.
All artillery systems and armored vehicles with cannons 100mm caliber and larger will be moved away from the present positions. The self-defense militia of Donetsk and Lugansk Regions have reportedly started to do the same, but with less evident progress, because they have fewer heavy armaments than Ukrainian troops. After both militaries step back the agreed 15km, that would create a 30km security zone between the warring parties.
Sunday, September 21
19:41 GMT:
The ceasefire in southeastern Ukraine was a justified move, as it has already led to the release of 1,500 prisoners, Ukrainian President Petro Poroshenko said.
“And today we have saved lives. I think there’ll be more than 1,500 people saved. People are still dying, but the number of casualties has decreased tenfold. There’s no alternative to peace,” the president explained.
During his appearance on Ukrainian TV, Poroshenko also stressed that a de-escalation of the conflict is taking place in Donbass.
Hungary agrees with Gazprom on increased gas supply for winter
September 26, 14:08 UTC+4
Hungary’s energy supply “should not be jeopardized” in connection with the Russian-Ukrainian gas dispute, Hungarian Prime Minister Viktor Orban says
Hungary’s energy supply “should not be jeopardized” in connection with the Russian-Ukrainian gas dispute, Hungarian Prime Minister Viktor Orban says
VIENNA, September 26. /ITAR-TASS/. Hungary has reached an agreement with Russia’s natural gas monopoly Gazprom on increased gas supply to the country during the autumn-winter period, Hungarian Prime Minister Viktor Orban said on Friday.
“We will need large gas volumes in the coming period to replenish the reserves. I have reached an agreement with (Gazprom CEO Alexey) Miller, so we will receive these volumes,” Orban said on Hungarian radio, commenting on his talks with Miller held in Budapest on September 22.
Orban said Hungary’s energy supply “should not be jeopardized” in connection with the Russian-Ukrainian gas dispute. According to him, the country’s gas storage facilities are currently 60% filled.
On Thursday, Hungary’s gas operator FGSZ Ltd. suspended natural gas supplies to Ukraine for an indefinite period of time. The decision was made to meet the growing domestic demand for gas, the company said.
Gas supplies to Ukraine were suspended at 6pm local time on September 25. “Gas supplies have been halted for an indefinite period of time,” the company said in a statement. “In order to manage the security supply and preserve the network balance, the Beregdarуc network point connection has to be altered to enable all pipelines to be suited for inward transmission,” FGSZ said.
In March 2013, Ukraine and Hungary agreed on gas supplies to Ukraine in the amount of up to 6.1 billion cubic meters a year (16.6 million cubic meters a day). It was also stated that the system could operate only intermittently, depending on current commercial and technical conditions.
Hungary’s news agency MTI reported on Friday that the country’s National Development Ministry stated on Thursday that the government would "take the necessary measures to secure gas supply to Hungarian consumers and accelerate filling its gas storage facilities ahead of the winter season".
Tweets - 9/27 .....
Elections to remove doubts concerning legitimacy of Luhansk authorities – republic´s head http://bit.ly/1qFJEWM
Ceasefire in East #Ukraine generally holding - LPR head http://bit.ly/101IH5S
Western sanctions, Russia’s retaliation to deal hard blow on world economy - Kazakh FM http://en.itar-tass.com/world/751620
City council says gunfire audible in #Donetsk; water supplies disrupted in several districts http://www.kyivpost.com/content/ukraine/city-coucil-says-gunfire-audible-in-donetsk-water-supplies-disrupted-in-several-districts-366144.html …
Security Council: Exact number of killed and missing people in #ATO zone unknown http://www.kyivpost.com/content/ukraine/nsdc-cannot-name-exact-number-of-killed-and-missing-people-in-ato-zone-bodies-being-indentified-data-being-collected-366143.html …
Lavrov: #Kyiv's claims to renounce non-aligned status not helping peace in east #Ukraine http://www.kyivpost.com/content/ukraine/lavrov-says-kyivs-claims-to-renounce-non-aligned-status-not-helping-peace-in-east-ukraine-366142.html …
Cabinet submits law on lustration to #Ukrainian presidential administration http://www.kyivpost.com/content/ukraine/cabinet-submits-law-on-lustration-to-ukrainian-presidential-administration-366140.html …
Ukraine Today: Russian sanctions to stay; G7 says penalties to remain unless Russian army withdraws from Ukraine(VID) http://www.kyivpost.com/multimedia/video-2/ukraine-today-russian-sanctions-to-stay-g7-says-penalties-to-remain-unless-russian-army-withdraws-from-ukraine-video-366139.html …
Illegal Russian intervention in Ukraine;# President Poroshenko slams #Russian 'aid convoy' http://www.kyivpost.com/multimedia/video-2/illegal-russian-intervention-in-ukraine-president-poroshenko-slams-russian-aid-convoy-366145.html …
Ukraine Today: Russia denies entry to #EU lawmaker; Member of the European Parliament #Rebecca Harms blocked... http://www.kyivpost.com/multimedia/video-2/ukraine-today-russia-denies-entry-to-eu-lawmaker-member-of-the-european-parliament-rebecca-harms-blocked-from-savchenko-trial-video-366136.html …
Tweets - 9/26 .....
EC says #Russia will do everything possible to worsen situation in #Ukraine with gas supply http://www.kyivpost.com/content/ukraine/ec-says-russia-will-do-everything-possible-to-worsen-situation-in-ukraine-with-gas-supply-366068.html …
#Ukrainian government proposes anti-#Russian sanctions on 209 companies, 1,000 persons http://www.kyivpost.com/content/ukraine/ukrainian-government-proposes-anti-russian-sanctions-on-209-companies-1000-persons-366058.html …
#Ukraine since early September imports 800 million cubic meters of #gas from Europe http://www.kyivpost.com/content/business/ukraine-since-early-september-imports-800-million-cubic-metersof-gas-from-europe-366057.html …
Reuters: #Ukrainian, #Russian officials start work to set up 'buffer zone' in east http://www.kyivpost.com/content/ukraine-abroad/reuters-ukrainian-russian-officials-start-work-to-set-up-buffer-zone-in-east-366036.html …
Geoffrey Pyatt says not time to cancel sanctions against #Russia http://www.kyivpost.com/content/russia-and-former-soviet-union/us-ambassador-to-ukraine-says-not-time-to-cancel-sanctions-against-russia-366034.html …
Reuters: #Russian gas flows to EU via #Ukraine mostly stable - Slovak pipeline http://www.kyivpost.com/content/ukraine-abroad/reuters-russian-gas-flows-to-eu-via-ukraine-mostly-stable-slovak-pipeline-366031.html …
Ukraine to complete first stage of building wall along border with Russia by next week http://en.itar-tass.com/world/751392
EU to discuss lifting sanctions against Russia in October — diplomatic source http://en.itar-tass.com/world/751363
Tripartite meeting among Russia, Ukraine and EU on gas issues will be held Friday http://bit.ly/1ok3l6Z
Power struggle between #Poroshenko and Right Sector to decide future decentralization in #Ukraine - expert http://bit.ly/1ojYaE1
Lasting peace in Ukraine impossible without direct dialogue of Kiev and self-proclaimed republics - Russia's OSCE envoy
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