KTFA:Samson: Putin announces the nationalization of a huge American project in Russia
9th October, 2022
Russian President Vladimir Putin has signed a decree establishing a new operator for the Sakhalin 1 oil and gas project led by ExxonMobil (XOM.N) in Russia’s Far East
Putin’s move affecting Exxon’s largest investment in Russia mimics the strategy he has used to control other energy properties in the country. The decree gives the Russian government the power to decide whether foreign shareholders can hold stakes in the project
Exxon holds a 30% stake in the operator in Sakhalin-1, with Russia’s Rosneft (ROSN.MM), India’s ONGC Videsh (ONVI.NS) and Japan’s SODECO as partners. Oil production at the Sakhalin 1 project fell to just 10,000 barrels in July from 220,000 bpd before Russia invaded Ukraine
Exxon has been trying to exit its operations in Russia and transfer its role in Sakhalin 1 to a partner since March, following international sanctions imposed on Moscow. The Russian government clashed with Exxon, with the oil producer threatening to refer the case to international arbitration
An official at Japan’s SODECO, which holds a 50% stake in the company, said it was gathering information and talking to partners as Japan had stopped buying crude from Russia since June. In this framework, a new Russian legal entity will assume the rights and responsibilities of the existing union of investors and operator of Exxon Neftegas
The foreign partners had a month to decide whether to keep their shares in the new company. Those who decide to withdraw will receive compensation adjusted for potential losses that emerged earlier this year amid the Sakhalin-1 production halt and Exxon halted production after the Russian invasion of Ukraine. The companies participating in the project include “ExxonMobil”, “Rosneft”, “SODECO” of Japan and the Indian Oil and Natural Gas Company
The beginning of the crisis
Exxon said in early August that it was in talks to hand over its 30% stake to an as-yet-unnamed third party
The next day, Putin issued a decree banning the exit of foreign joint stock companies from several strategic projects, including Sakhalin 1, until the end of the year, but Exxon defied the decree. In this context, in July, Putin signed a similar decree on the transfer of operations of the “Sakhalin 2” natural gas project to a Russian entity
Shell Plc, which owns a 27.5% stake in the facility, said it was “quite unlikely” that it would take a stake in the new Sakhalin entity. Meanwhile, Japanese companies Mitsubishi Corp and Mitsui & Co. decided to maintain investments in a major LNG plant in Russia LINK
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Samson: Governor of the Central Bank in Parliament to answer the currency of “20,000 dinars”
9th October, 2022
On Sunday, the Parliamentary Finance Committee will discuss with the Governor of the Central Bank the currency auction and the issuance of a new Iraqi currency.
A member of the Parliamentary Finance Committee, Nermin Maarouf, told Shafak News Agency; Today, the Parliamentary Finance Committee will host the Governor of the Central Bank to discuss a number of important topics and issues, most notably the currency auction, the sale window, currency printing, the working mechanism of the participating banks, and other topics and issues within the tasks of the Central Bank.
Maarouf added; “During the hosting, we will direct a number of questions to the governor, the most prominent of which are the feasibility, justifications and reasons for taking a decision by the Central Bank to print and issue a new category (20 thousand dinars) and how much money will be issued from the new category and the mechanism for putting such a currency in the market.”
On Tuesday (27 September last), the Governor of the Central Bank of Iraq, Mustafa Ghaleb Mukhaif, revealed that there is an intention to issue a 20 thousand dinars banknote. LINK
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DoTalkToMe: Happy thanksgiving to all Canadians. May Gods blessings be upon you.
Today is also the first day of the Feast of Tabernacles. Day of Remembrance of how God protected Israel during there 40 years in the desert. God bless Israel our brothers & sisters.
