The figures are enough to make Exxon executives foam at the mouth. Revenues have doubled, profits have increased five fold and production is up 11%. But to find this kind of petrol potential, you've got to book a flight to Moscow.
“Russia’s producing 10 million barrels a day, and exporting 70% of that crude and product. I think Russia has massive resource potential,” says Peter O'Brien, the CFO of Rosneft, a state-run oil conglomerate.
O’Brien is among a growing number of Western executives now working in Russia. Currently he has his company looking for new markets and new fields to tap. “We will launch production in the Vankor province around the end of this year,” he says. “Over the next 5 to 7 years we think we can generate up to 500,000 barrels per day. The amount of crude reserves we expect to come in at about 3 billion barrels.”
But don’t expect to be filling your tank with Rosneft premium-93 anytime soon. “I think we’ll be more focused on what we have to do in Russia,” says O’Brien. “I think we’re several years away from adding capacity in North America.”
Also it’s worth noting, the company is not without its critics. Last year, in an auction that lasted less than 4 minutes, Rosneft won the assets of bankrupt oil giant Yukos at bargain basement prices. It was an acquisition some say was driven by Vladimir Putin's need to control Russia's oil supply.
Controversy or not, no one can deny that crude oil and companies such as Rosneft could be the next revolution in Russia.
In case you’re wondering this stock trades in London under the ticker (ROSN) and on pink sheets here in the U.S.
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And if you're looking for more trades take a look at Lukoil ,Gazprom and ConocoPhillips , counsels Seymour. Or you might consider the Market Vector Russia ETF .
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Trader disclosure: On Apr. 22, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (YHOO), (MSFT), (INTC); Finerman Owns (GS); Finerman's Firm Owns (DAI), (MSFT), (NYX), (TSO), (VLO), (YHOO); Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY),(COF); Najarian Owns (AAPL), (ENER), (NOK), (TSO), (XLF), (YHOO), (EMC); Najarian Owns (BHI) Calls, (DD) Calls, (MSFT) Calls, (POT) Calls, (CHK) Calls; Charles Schwab Is A Sponsor Of "Fast Money"
Gazprom Is On Pink Sheets In The U.S. But Trades On The Exchange In London
Lukoil Is On Pink Sheets In The U.S. But Trades On The Exchange In London
Rosneft Is On Pink Sheets In the U.S. But Trades On The Exchange In London
