Rosneft

ExxonMobil Corp. on Thursday said it would fight a $2 million fine imposed by the U.S. Department of Treasury for potentially violating Russian sanctions dating to 2014 while it was led by Secretary of State Rex Tillerson.

BP plc on Friday clinched an agreement with OAO Rosneft to expand natural gas sales to Europe and develop more gas projects in Russia.

Russia’s largest publicly traded producer, OAO Rosneft, is becoming an equal partner in groundbreaking research between BP plc and Schlumberger Ltd. to develop “cableless” onshore seismic acquisition technology.

BP plc on Tuesday reported a 65% increase year/year in profits in 2Q2014 on clear signs of recovery in the Gulf of Mexico (GOM). However, Group CEO Bob Dudley warned that Russian investments are growing more risky on escalating economic sanctions.

BP plc has no plans to turn its back on considerable Russian oil and natural gas prospects, and the company, in fact, expects to play an important role to bridge engagement between Russia, as an energy supplier, and Europe, as an energy consumer, Group CEO Bob Dudley said Thursday.

Analysts said economic sanctions from the United States and the European Union (EU) designed to punish Russia for its actions in Ukraine were "modest" at best, and could potentially damage business relationships that western oil and gas companies spent years building with OAO Gazprom and OAO Rosneft, Russia's state-owned gas and oil companies.

Russia’s OAO Rosneft apparently no longer is considering BP plc as a partner for its planned Arctic development. The strategic alliance had included an Arctic exploration joint venture as well as a stock swap (see NGI, Jan. 17) BP’s current Russian partner TNK-BP objected and legally blocked the alliance (see NGI, May 30). BP CEO Bob Dudley, who had helped craft the proposed alliance, said the company was “moving on,” readying the launch of 30 global projects by the end of 2016 and returning to work in the Gulf of Mexico.