Russia’s powerful prime minister Vladimir Putin has given a vote of confidence in Royal Dutch Shell, saying he is “comfortable” with the company exploring the Arctic with state-controlled oil giant Rosneft.
The right to look for oil in the Arctic is a great prize for foreign companies as there is the potential for major discoveries in an area the size of the North Sea. Photo: REUTERS
His comments come after the collapse of Rosneft’s £10bn share swap and Arctic exploration deal with BP, Shell’s nearest rival.
Mr Putin told the Russian state news agency: “We’ve been working with Shell for a long time. We’re comfortable with them.”
However, he showed that Russia is still keeping its options open by adding “our work with BP is not over yet”.
The BP-Rosneft alliance was frustrated when it emerged that an existing agreement between BP and four Russian billionaires prevents the British company from pursuing any other opportunities in the country.
Since then, Rosneft has been talking to other parties, such as Shell, Chevron and ExxonMobil.
A spokesman for Shell confirmed earlier this week that its chief executive, Peter Voser, had been in “constructive talks in Moscow this week regarding potential exploration co-operation with Rosneft in the Arctic, broader strategic co-operation and technology development for the Arctic and other areas as well as opportunities for Rosneft to join Shell in developments outside Russia.”
The right to look for oil in the Arctic is a great prize for foreign companies as there is the potential for major discoveries in an area the size of the North Sea.
