The Big Exchange: Russian Companies Competing for Downstream Projects and Foreign Companies Seeking to Enter Upstream Projects
National Energy Security Fund , July 2007, Pages: 56
As the presidential race approaches we are witnessing President Putin’s efforts to speed up the exchange of assets with overseas energy corporations. His main goal is to take the Russian producers to the multinational level and become head of the most influential player on the global energy market. It will take crafty use of the main card – hydrocarbon resources, without which no western energy company can develop. The Russian executive administrators adhere to a simple policy that makes it harder for western firms to work in Russia or even pushes them out of production projects. In exchange, the government suggests that they should think about the ways to let Russian corporations to downstream business. Only then Russia will be open for talks on upstream projects on its soil. Another subject of negotiations is access to resources in exchange for unique technologies.
The report dwells on the following subjects
- Conditions for the work of foreign companies in Russia. Impending changes to the legislation, including amendments to the Subsoil Law.
- Successful and failed strategies of foreign companies in Russia. Success of the German and Italian firms and its causes. Issues of BP and Shell. Conoco and its easy access to LUKOIL. Sakhalin wars. The outlook for oversea partners in offshore production business in Russia.
- Russian companies and their overseas plans. The Gazprom’s invasion in Europe and the Rosneft’s plans for China. LUKOIL as the most untypical company of Russia: unveiled bet on oversea projects.
- Political protection methods. The EU’s methods against the Russian corporations’ expansion. Opportunities for splitting producing, transporting and energy producing companies.
- The outlook for the hydrocarbon production industry of Russia and exchange strategies. Problems in the upstream segment and their possible solution via new technologies and access to target markets.
