...Title: JOURNEY TO SAKHALIN: ROYAL DUTCH/SHELL IN RUSSIA (A) CASE STUDY REPORT Contents Page 1. Executive Summary……………………………………………………………….…………………..3 2. Introduction…………………………………………………………………………….………..……….3 3. Analysis…………………………………………………………………………………..…………….……3 3.1 Foreign Direct Investment…………………..…………………………………….……………...3 3.2. Sakhalin………..……………………………………………………………………………………….…..4 3.3. Production-Sharing Agreement……………………………………………………………..….4 3.4. Approvals-TOEC…………………………………………………………………………………..…….5 3.5. NGO’s and the Environment………………………………………………………………..…...5 3.6. SEIC’s strategic moves……………………………………………………………………..………..6 4. Recommendations……………………………………………………………………………..……..7 1. Executive Summary: In the following report the case study titled “Journey to Sakhalin: Royal Dutch/Shell in Russia” will be examined. A summary of the main issues that SEIC came across with, is analyzed including issues with the PSA and the political usage of Sakhalin II project, as means to an end. Other issues including late approvals, TOEC acquisition and nongovernmental organizations’ influence to potential buyers and lenders are also mentioned. Conclusively a recommendations section is created for the future of Sakhalin II project, that emphasizes on the PSA matter and the TOEC acquisition. 2. Introduction In the period of 1997-1999 Russia faced a great economic decline with a massive fall in GDP...
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...international demand for them are very high. Recently, Russia has tapped a massive amount of gas and oil reserves because as the Soviet Union disintegrated Russia began to plot what would bring them the most revenue to stabilize their economy. According to Journey to Sakhalin: Royal Dutch/Shell in Russia, “As a result; oil and gas dominated Soviet export earnings, reaching as high as 75% of the total.” Meaning that international consumers were willing to pay premium prices for Russia’s resources. However, critics pointed out that Russia failed in tapping potential markets where they could earn more money raising there GDP and possibly helping their economy. One example given is that if Russia’s leading gas firm, Gazprom, decided to tap the Asian markets, they could simultaneously stimulate the Russian/Asian transport industry. Russia is focused more on their gas resource than their oil because it is much more abundant than oil and has a higher demand than oil because they have 20% of the world’s gas resource. How much protection do Production Sharing Agreements (PSA) provide for foreign investors? Why are PSA’s so controversial in Russia? Initially, Product Sharing Agreements (PSA’s) relating to Sakhalin were offered to attract foreign investors to invest in “risky, technically challenging, and long term...
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...personally. You can use any regulation for this assignment so long as you are able to answer the questions posed here (Questions 1-5). (10 points) Answer: National Oceanic and Atmospheric Administration. I’m interested in environmental and animal conservation and this agency ensures stewardship of natural resources and the wildlife within. 2. Describe the proposal/change in your own words. (10 points) Answer: The proposal aims at classifying the Sakhalin Bay-Amur River stock of beluga whales as depleted which would offer them additional protections under the Marine Mammal Protection Act. 3. Write a comment which you would submit to the administrative agency regarding this proposed regulation. (For example, are you in favor of the proposed regulation or against it? Why?) If the deadline for comments has already passed, write the comment you would have submitted had there been time. Also, explain briefly what you wish to accomplish with your comment. (10 points) Answer: I support this proposal of enacting ‘depleted’ status for Sakhalin Bay-Amur River stock of beluga whales. Already the Alaska beluga population is considered endangered and is protected but with the population dropping worldwide it is time to take action before it’s too late. Direct responsibility for this stock of whales will not fall on the United States as it is under Russia’s jurisdiction; however it will heighten awareness and enact the prohibition to import any wild-caught beluga...
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...contributor factor in their economy. The risk aroused due to the Production-Sharing Agreement (PSA) that made many effective domestic firms against such agreement. They considered it as unfair, because it favored foreign firms. Furthermore, Custom officers were against the agreement that affected RDS in importing project materials. So, RDS stated to defend with all they got to defend the PSA because they were challenged by some members from the Russian Parliament. The second risk was the delay of the second phase of Sakhalin, because the governance had become decentralized it led to a pending of approvals of launching the project. For instance, it would be so risky to commit $10 billion to Sakhalin 2 without getting the approval for TEOC. Therefore, it is crucial to have a profound understanding of the political dynamics of the host county before launching a major project and to know how to deal with it legally. Another major risk which is environmental risk. Sakhalin is differentiated by its natural environment. It has rivers, streams and lakes. Salmon live in the steams. In addition, the most dangers spices was the western gray whale. This means the SEIC has to create a sustainable methodology in a way to ensure the safety of the environment. Organizations such as nongovernmental organizations (NGOs) observe, so SEIC needs to be very...
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...He was elected as a member of The Society of Lovers of Russian Literature. He wrote several plays including the one acts entitled The Proposal and The Wedding. He also wrote, The Wood Demon, a four act play. The first production of The Wood Demon did poorly and this was disheartening to Chekhov. Later that year, his brother passed away from tuberculosis. In an effort to focus on science rather than literature, Anton traveled to an island penal colony, Sakhalin, where he observed thousands of men sentenced to life on the island. For the next two years, he continued his travels. He visited places in Asia, India, and the Middle East. Soon he grew weary of travel, as is health kept declining further. In 1892, Anton bought a country home in the village of Melikhovo. He would live there for the next six years. This time is referred to as Chekhov’s Melikhovo Period. In this time he wrote several of his popular works including Neighbors, Ward No. 6 (1892), and The Black Monk...
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...a. What was decided at the Yalta Conference? The Yalta Conference was held in the Crimea in Feb 1945. It was attended by Stalin, Roosevelt and Churchill. At the time, it was seen as a great success because agreement was reached on a wide range of topics: * The UN should be set up * Germany was to be divided into 4 zones; initially USA, UK, Russia but France was added later * Similar agreements were made in Austria * Free elections were to be held in all Eastern European countries * Stalin agreed to enter war against Japan on condition that they gained Sakhalin Island and parts of Manchuria. But, there were also signs that they were unlikely to agree over Poland. When Russia had swept through Poland, pushing the Germans back, they had set up a communist government in Lublin, even though there was a Polish government in exile in London. It was agreed at Yalta that some of the exile government should join the Lublin government, and in return, the Russians would be allowed to keep a ‘strip’ of Eastern Poland. But Roosevelt and Churchill refused to agree to Stalin’s demands that Poland should be given all of the land east of the Oder-Neisse Line. b. Why was there so much mistrust between the east and the west in 1945? At this time, Stalin was hungry for Power and he wanted to take control of any country he could, no matter the consequences. During the Yalta Conference, Russia had set up a communist government in Lublin even though there was a Polish government...
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...What are the most important differences between international oil and gas markets? How is Russia situated in these markets? International oil and gas markets are vitally important to any nation with these resources. They alone can create many opportunities for jobs, investments, trade, and political reforms. When one of these resources are discovered, it catches the attention of the world because these goods are known as “scarce resources”, and so, the international demand for them are very high. Recently, Russia has tapped a massive amount of gas and oil reserves because as the Soviet Union disintegrated Russia began to plot what would bring them the most revenue to stabilize their economy. According to Journey to Sakhalin: Royal Dutch/Shell in Russia, “As a result; oil and gas dominated Soviet export earnings, reaching as high as 75% of the total.” Meaning that international consumers were willing to pay premium prices for Russia’s resources. However, critics pointed out that Russia failed in tapping potential markets where they could earn more money raising there GDP and possibly helping their economy. One example given is that if Russia’s leading gas firm, Gazprom, decided to tap the Asian markets, they could simultaneously stimulate the Russian/Asian transport industry. Russia is focused more on their gas resource than their oil because it is much more abundant than oil and has a higher demand than oil because they have 20% of the world’s gas resource. How much protection...
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...Q1. Use the Porter’s National Diamond Framework to assess the power industry in Russia. Land, location, natural resources, labour and population are the determinants in the competitive advantage of any industry in a particular country. The Porter’s National Diamond Framework uses a more proactive approach in considering the factors such as: * The firm strategy, structure and rivalry * Demand conditions for products * Related supporting industries * Factor conditions The Diamond Model demonstrates that countries can become competitive regardless of whether they possess natural factor endowments such as land and natural resources. In the Diamond Model, the role of government is to encourage and push organizations and companies to a more competitive level, thereby increasing performance and ultimately the total combined benefit. Figure I: Porter’s Diamond Model 1. Factor Conditions After the breakdown of Soviet Union, Russia was still a closed economy. The power sector was mostly owned by the state. There was no competition and thus the following consequences: * Technological innovation was languished * No increase in efficiency * No investment in the sector * Irrational Consumption * Prices, annual production, assignment of quotas to individual producers and consumers were administered by a national regulator. * Natural Gas was the main component in the production of electricity and its price was regulated. * Due to the above...
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...of Russia, ruling from 1 November 1894 until his forced abdication on 15 March 1917.[1] His reign saw the fall of Imperial Russia from being one of the foremost great powers of the world to economic and military collapse. Due to the Khodynka Tragedy, anti-Semitic pogroms, Bloody Sunday, the violent suppression of the 1905 Revolution, the execution of political opponents and his perceived responsibility for the Russo-Japanese War, he was given the nickname Nicholas the Bloody by his political enemies.[2][3] Russia suffered a decisive defeat in the Russo-Japanese War, which saw the annihilation of the Russian Baltic Fleet at the Battle of Tsushima, loss of Russian influence over Manchuria and Korea, and the Japanese annexation of South Sakhalin. The Anglo-Russian Entente, designed to counter German attempts to gain influence in the Middle East, ended the Great Game between Russia and the United Kingdom. As head of state, Nicholas approved the Russian mobilization in late July 1914, which led to Germany declaring war on Russia on 1 August. It is estimated that around 3.3 million Russians were killed in World War I.[4] The Imperial Army's severe losses and the High Command's incompetent management of the war efforts, along with the lack of food and other supplies on the Home Front, were the leading causes of the fall of the Romanov dynasty. Following the February Revolution of 1917 Nicholas abdicated on behalf of himself and his son, and he and his family were imprisoned. In...
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...and grasp total command of the sea though. They desperately needed to obtain control over the seas as to gain advantages from land. In May of 1905, a battle at the Tsushima Strait, the main Japanese fleet destroyed the Russian Baltic Fleet. Japan was running out of funds, but doing well in the war, is creating political unrest throughout Russia. Even though war had never been a very popular option, brought the Russian government to start to consider peace and a treaty. The United States President Theodore Roosevelt, was the mediator at the peace conference. The Peace conference was held at the Portsmouth Naval Shipyard in Maine, U.S. From the now, new, Treaty of Portsmouth, Japan gained control of the Liaodong Peninsula as well as half of Sakhalin Island. Russia agreed to remove their troops from Manchuria, which was given back to China, and Japan’s control of Korea was officially recognized. In the end the war surmounted and produced a numerous casualties, this war ultimately led to a peaceful treaty. ...
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...Chapter 27 Section 1 3. Adolf Hitler played on the publics fear of communists and exploited the shortcomings of the Weimar Republic including economic failure incurred by the Great Depression and inflation. 4. The Good Neighbor Policy terminated the US Marines occupation in Nicaragua in 1933 and occupation of Haiti in 1934, leading to the annulment of the Platt Amendment by the Treaty of Cuba in 1934 and the negotiation of foreign owned oil assets in 1938. Section 2 The Maginot Line dominated French military and worked as a system of defense. Phoney War was a phase in World War ll that was marked as a lack of major military operations. Winston Churchill was former Prime Minister of the United Kingdom. Thomas E. Dewey was the prime minister of New York. Wendell Wilkie was a lawyer. The Destroyers for Bases Deal transfer 50 u.s destroyers to the British in exchange for naval bases. The Atlantic Charter wS a pivotal policy statement. 3. Billy Mitchell became an advocate for air power between the two world wars. Being a military leader, he thought air power would be beneficial for wars. 4. FDR introduced the New Deal policy, economic programs. 5. ULTRA was used to decipher coded and encrypted messages that contained valuable info. This info was credited with winning the war. Section 3 1. Flying Fortresses was a four engine heavy bomber aircraft. V-1 and V-2 were both rockets that cost over 3 million dollars. Dwight Eisenhower was the 34th president. George...
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...GEDUCOS, Argyll Cyrus B. I. BACKGROUND INFORMATION / ADDITIONAL PERSPECTIVE Public Relations is the process of building up good relationships between a company or organization and the public. They use Public Relations to build up a good reputation and a good name for their company and sometimes they use it to clear things up on their part especially if they are in a great crisis. Crisis need not strike a company purely as a result of its own negligence or misadventure. Often, a situation is created which cannot be blamed on the company - but the company finds out pretty quickly that it takes a huge amount of blame if it fumbles the ball in its response. One perfect example of this is that of Johnson & Johnson, and their response to the Tylenol poisoning back in the year 1982 when the company’s Tylenol medication commanded 35 per cent of the US over-the-counter analgesic market. Unfortunately, one individual succeeded at lacing the medication with cyanide. This caused the death of seven people which resulted into a nationwide panic about how widespread the said contamination may be. In the end of that certain incident, everyone knew that Tylenol was associated with the scare and J&J’s market value fell by one billion dollars as a result. History repeated for Johnson & Johnson. The incident reenacted itself in 1986, but the company has learned its lesson and is not willing to suffer the same consequences. It acted rapidly and recalled every Tylenol products from every market...
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...Organizing Paper ExxonMobil September 14, 2011 Rhoni Dixon Management 330 Raed Ramadan ExxonMobil is the second largest fortune 500 company in the world. It’s CEO is Rex W,. Tillerson. Exxon is the most profitable crude oil company in the United States. Exxon profits topped 30 billion which is a whooping 58 percent jump. Their rate of growth between 2000 – 2010 is 7.7 percent. Exxon ranks #1 in the industry of petroleum refining area. Exxon Mobil believes in integrity. They have a systematic and unwavering focus on safety, financial discipline, operational excellence and high ethical standards. The driving force behind them is their industry is leading return. ExxonMobil has a superior cash flow. Their global functional organization is fundamental to their ongoing success. They have developed for many years building on common standards, processes and culture of the cooperation generates an unique advantage. Senior management involvement is all major decisions ensures consistent global execution on the business operations. The cooperation invested with discipline. There project management incorporates best practices developed around the world. Moody’s and Standard & Poor’s recognize their superior financial strength by assigning the highest credit rating to their financial obligations. They are on e of the very few public companies who has maintained this credit rating. The financial or monetary outlook of Exxon...
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...ASIA Glasgow U.K. Norwegian Sea NORWAY Svalbard (NORWAY) 40 60 FRANZ JOSEF LAND 160 80 100 120 140 80 U.S. 0 Wrangel Island OR Provideniya 'Y North Sea DEN. SWEDEN Barents Sea Murmansk NOVAYA ZEMLYA SEVERNAYA ZEMLYA Cherskiy AG KOLY MSKOYE N Oslo Copenhagen NEW SIBERIAN ISLANDS East Siberian Sea Stockholm FINLAND POL. RUS. Tallinn Riga Helsinki St. Petersburg Lake Ladoga Lake Onega Kara Sea Laptev Sea a Kolym EST. Warsaw Vilnius LAT. LITH. Tiksi Arkhangel'sk Noril'sk Pec ho ra VER KH RE BE T C HE R S KO G O Minsk BELA. T A U Kiev Ob ' Arctic Circle Moscow Voronezh Saratov lga Vo O Nizhniy Novgorod Kazan' a Kam Samara Ufa Alda n M UKR. Kharkiv Donets'k S I B E R I A y yu Vil Yakutsk UR ET D ZH U G D Z H IN S AN SK K H R EBET Magadan PetropavlovskKamchatskiy 160 N R EB Perm' Yekaterinburg Irt ysh R U S S I A isey Yen KH Black Sea Omsk Atyrau (Atyrau) Krasnoyarsk K OV Y H R EB ET U Amu r R Volgograd Rostov US AS UC CA A L Chelyabinsk Angara na Le Qaraghandy (Karaganda) Irkutsk LING Tbilisi Caspian Sea Yerevan AZERBAIJAN ARMENIA S. MT YA BL ON GEORGIA Astana SI KH O TE-ALIN' Novosibirsk Lake Baikal Khabarovsk Y Aral Sea QIZIL QUM NCH Tabriz HIN ...
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...There is a lot of debate of which factor played the largest role in initiating the Cold War during the period of 1945-50. Mostly sources 7 and 9 argue that various ideological differences between the two superpowers were responsible for the origins of the Cold War; while sources 8 and also 9 differ and state that it could have been down to other factors, such as conflicting personalities of the leaders and general national interests. On the one hand source 7 supports the argument that it was political ideological differences that caused the Cold War, arguing that the USSR was seen as a “unique and unbending armed ideology threatening to expand” which resulted in an “ideological crusade” between the two superpowers. Source 9 provides support, stating one of USA’s capitalist strategies was “containment” of communism to ensure successful free markets could be established. It is easy to see how the conflicting ideologies between the two countries – USA supporting free market capitalism and a liberal democracy, while USSR had a controlled economy and a one party state. This evidence clearly shows that the two superpowers were essentially on the opposite sides of the spectrum to each other and were constantly trying to hinder one another, which would cause a rise in tension between them. However the interpretation that the political ideological disagreement is entirely responsible for the beginning of the Cold War can be considered too simplistic. As Bolshevik Revolution of 1917 did...
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