Sechin Latin America trip opens door for Russian energy producers
Published: 30 July, 2009, 20:53
TAGS: Investment, Oil, Russia and the global economy, Gas
Russia will start exploring for oil in the Gulf of Mexico, after signing a deal with Cuba this week. The announcement comes as part of Deputy Prime Minister Igor Sechin's visit to the region.
Sechin's Latin American tour resulted in new prospects for Russian energy companies. Venezuela was the first stop of the trip. The Deputy Prime Minister talked up the longer term prospects of a joint venture deal the two nations agreed for the oil and gas sector.
"To create an actual basis for work in the oil and gas industry, a memorandum has been signed between Gazprom and Petroleum of Venezuela to form a joint venture for providing services."
Sechin later visited Nicaragua where more agreements were penned, before contracts in Cuba opened the way for Russian companies to explore for oil off its coast.
Denis Borisov, Senior Analyst at Solid-Invest says traditional geopolitical interests in the area are not the only reason for the visit.
“It's an attempt to enhance the effectiveness of oil extraction and compensate for problems that in the last few years have held back Russian companies from entering new regions.”
North America is the traditional and potential customer of oil extracted from this region. The deals signed this week will potentially give Russian companies 5 to 10 years of business in a potentially lucrative market.
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Way to go Russia, we need you in South America so Americans and European can be kicked out. Viva Putin and Medieve
As long as it all makes sound business sense, excellent news. Indeed I would like us to develop more and more business in central and south America. There are great peoples there, we need offer them a fair equitable deal, so they can develop as quick as possible, and we can make good profits. We should offer a win-win to our partners and end the western exploitative model. A deal with Russia, needs to be a deal for your people. America needs oil and it is close by, so it can even benefit the US, oil deliveries on their doorstep, what service!
We sure showed the Cubans who was boss, didn't we. USA refused to deal with Communist Cuba, although it was OK to deal with Communist China. But we stuck to our embargo even after oil was discovered under Cuba. Hm, maybe there is still a chance that we can buy Cuban oil from the Russians? For a price, of course. Sheesh, the Russians are better Capitalists than we are.