NEFTE Compass articles from December 2005

NEFTE Compass archives from December 2005

Landslide: Kazakh Strongman To Rule Until 2012.
December 6, 2005... Oil and gas companies in Kazakhstan are facing seven more years under the firm rule of President Nursultan Nazarbaev after he was reelected on Dec. 4 with 91% of the votes, with his nearest challenger garnering only 6.6%. Though election...

Island Coup: TNK-BP To Open Sakhalin Door To Gazprom.
December 6, 2005... TNK-BP and gas giant Gazprom have been busy wheeling and dealing. In the midst of heated talks about the TNK-BP's massive Kovykta field and the future of Slavneft, the Russian-UK joint venture reportedly has reached an agreement that will give...

Rising Tide: Russian Crude Exports Rise In November.
December 6, 2005... Russian crude exports via the Transneft system rose by 184,000 b/d, or nearly 5%, in November from the previous month, despite adverse shipping conditions on the Black Sea. November exports totaled 3.924 million b/d (16.058 million metric...

Status Quo: Sibneft Export Flows To Stay On Course.
December 6, 2005... Sibneft's crude export flows are not going to change direction under its new owner Gazprom for at least another year, according to trading sources. Sibneft Oil Trade (Siboil) will continue to handle the oil producer's exports. It had been...

False Start: Yukos Shares Soar On Misread News.
December 6, 2005... Shares of Russian producer Yukos have soared following speculation that there may still be light at the end of the tunnel for the fallen major. Yukos recently notified shareholders that it would hold an extraordinary general meeting on...

Mon Ami: Total Withdraws Kharyaga Claim.(Brief Article)
December 6, 2005... French Total said this week that it had withdrawn its claim against Russian authorities filed earlier in the Stockholm arbitration court in connection with the Total-operated Kharyaga project in the northern Timan-Pechora oil province of...

Eastern Allure: Stroitransgas Signs Two Contracts In Syria.
December 6, 2005... Russian oil and gas contractor Stroitransgas is pushing ahead with the company's expansion overseas by signing two contracts in Syria. The Russian firm and Syrian Gas Co. (SGC) have signed a contract to build a natural gas pipeline in Syria...

Norwegian Feast: Statoil Deepens Russian Ties Through Surgut.
December 6, 2005... Statoil is in talks with Russia's state-friendly Surgutneftegas on expanding the Norwegian oil company's operations in Russia, Surgutneftegas said in a press release. The two companies have agreed to increase Statoil's exports of...

Changing Tune: Germany Hails Gas Cooperation.
December 6, 2005... Germany's Economy Minister Michael Glos is to meet Russian President Vladimir Putin in Moscow on Dec. 8 and the following day both will attend an event in the Russian town of Cherepovetz, 400 km north of Moscow, to inaugurate the initial laying...

Turkmen List: Ashkhabad To Present Gas Audit To Russia.
December 6, 2005... Turkmenistan said last week it was ready to present the results of an international audit of national gas reserves to Russian gas giant Gazprom, removing the main stumbling block in negotiations for long-term cooperation. According to a...

Turkish Debut: Gazprom 'Wins' Turkish Gas Contract.
December 6, 2005... Gazprom is on the verge of making its first direct sales into Turkey. Turkish state gas import monopoly Botas expects to announce winners of a Gas Release program as early as next week; it is its sixth such tender during 2005, all previous...

Kazakhstan: Lukoil Completes Nelson Takeover.
December 6, 2005... Lukoil Overseas Holding has completed the acquisition of Nelson Resources, closing the deal just two months after it announced its $2 billion bid for the Kazakh producer (NC Oct.6,p1). The Russian oil giant said that shareholder and Kazakh...

Kazakhstan: Max Brings Maersk Engineers On Board.
December 6, 2005... Max Petroleum has appointed Ole Udsen, the former deputy managing director of Denmark's Maersk Kazakhstan, as its country manager for an exploration program. Max, which listed on London's Alternative Investment Market in October, has an...

Azerbaijan: Arcadia Wins Socar Tender.
December 6, 2005... UK trader Arcadia has won the latest tender from Azeri state Socar to buy 80,000 metric ton (586,000 bbl) parcel of Azeri Light, the national company said. The "profit oil" cargo from the BP-led Azerbaijan International Operating Co....

Turkmenistan: Swiss To Overhaul Turkmenbashi Refinery.
December 6, 2005... Turkmenistan has approved a C6.5 million ($7.6 million) deal for a Swiss company to upgrade its Turkmenbashi refining complex, according to local media reports. Sulzer Chemtech will carry out the major overhaul of a vacuum distillation...

Lithuania: Mazeikiu Talks Drag On For TNK-BP.
December 6, 2005... Another round of talks in Vilnius late last week between the Lithuanian government and Russian-UK joint venture TNK-BP made no clear progress in deciding the award of a controlling stake in oil company Mazeikiu Nafta (MN), which embattled Yukos...

Ukraine: Shell Signs Up For Gas Exploration.
December 6, 2005... Royal Dutch Shell and Ukraine's state Naftogas have signed a joint upstream agreement that will enable them to move ahead with exploration work in the country's Dniepr-Donets Basin. The two companies forged an initial deal in May to carry...

Kazakh Crude Oil And Condensate Production, November 2005.
December 6, 2005...  

London Calling: Rosneft Weighs Privatization Options.
December 6, 2005... The Russian government is looking to raise as much as $15 billion through the sale of a stake in state producer Rosneft, Russian Economic Development and Trade Minister German Gref reportedly said during a visit to Germany. To raise the...

Taking Note: Gazprom Places 1 Billion Euronotes.
December 6, 2005... Gazprom has placed a C1 billion ($1.2 billion) seven year, euro-denominated bond, according to media reports, citing one of the lead managers. The bonds were issued by Luxembourg-based Gaz Capital, a special financing vehicle of the...

Equities and Currencies.
December 6, 2005... Share Prices Closing On Dec. 6, 2005

Crude Oil: Cold Support Tempered By Rising Stocks.
December 6, 2005... Brent crude oil futures rallied again when another cold weather blast triggered further short-covering that took front month Brent futures from a Dec. 1 low of $54.63 to a Dec. 5 high of $58.57. The market then paused to await the release...

Products: Improved German Shipping Supports Gas Oil.
December 6, 2005... The market for Russian gas oil rebounded significantly this week after suffering over recent weeks from a lack of buying interest and adverse shipping conditions to the important German market. Tracking strengthening crude, gas oil futures...

Aiming High: Shell Determined To Boost Sakhalin LNG Capacity.
December 13, 2005... The Royal Dutch Shell-led Sakhalin-2 project on the Russian Pacific shelf is launching a campaign to expand its LNG capacity to cash in on rising world demand. Even before a decision is taken on building a third train by the consortium's...

Punching Low: Politics Flow Through Russia-Germany Gas Pipe.
December 13, 2005... If doubts lingered about the political coloration of Russia's planned North European Gas Pipeline (NEGP) running directly from Russia to Germany beneath the Baltic Sea, Russian state Gazprom has quashed them. The gas behemoth and German...

Expansion: Russia Raises Exports, Backs New Russneft Bid.
December 13, 2005... Moscow is continuing to ramp up crude exports despite the stifling tax regime that producers say is hampering production growth, raising volumes by 166,000 b/d in the first quarter of 2006 from the previous three months (see p11). Crude...

Go Kamchatka: Koreans Get Stake In Russian Upstream.(Brief Article)
December 13, 2005... In a mover to further tighten relations between Russia and Asian countries that are targeted by Moscow as new markets for its oil and gas, a South Korean consortium led by Korea National Oil Corp. (KNOC) has received a 40% stake in the project...

Backed: Lukoil Wins Support For Kaliningrad Proposal.
December 13, 2005... Lukoil's plan to build a refinery in Kaliningrad, the Russian enclave on the Baltic Sea, has received the backing of Kaliningrad Gov. Georgy Boos, who is pushing for tax breaks for the project. The issue was discussed on Dec. 14 at a...

Rising Costs: Transneft Hikes Crude Pumping Tariffs.
December 13, 2005... State pipeline operator Transneft has won the government's blessing to hike its crude pumping fees in 2006 by an average of 9.7% starting Jan. 1, 2006 to help finance its pipeline capacity expansion projects. After this week's decision by...

Tax Break: Russia Abolishes LNG Duty.
December 13, 2005... Russia has decided to abolish export duty on LNG from Jan. 1, 2006, Economic Development and Trade Minister German Gref said this week. Although Russia does not currently produce or export LNG, the move aims at creating preferential terms...

Bright Future: Shell Optimistic About Gazprom Swap.
December 13, 2005... Royal Dutch Shell says although negotiations with Gazprom on the assets swap deal in Russia are at very early stages, it hopes it could be finalized by the end of next year. The international major also emphasizes that the gas behemoth is not...

New Don: Russia Looks For Westerner For Rosneft Board.
December 13, 2005... Former US Commerce Secretary Donald Evans may be appointed as chairman of the board of directors at Russian state Rosneft, in another surprising appointment of a well-connected foreign politician. President Vladimir Putin has asked Evans to...

Fresh Blood: New Investor Gives Sibir Impetus.
December 13, 2005... Sibir Energy said that it was getting a new shareholder in a move that could help its oil production jump tenfold to at least 200,000 b/d over the next few years. Sibir said that Orton Oil, a subsidiary of Russia's Mercury Group, is to pay...

Field Day: TNK-BP Wins More Fields In Siberia.
December 13, 2005... TNK-BP has expanded its presence in West Siberia by winning four more licenses to develop reserves in Russia's Tyumen region. TNK-Uvat, a subsidiary of the Russian-UK joint venture, acquired licenses at an auction to develop the...

Moneybags: TNK-BP Increases Capital Expenditures.
December 13, 2005... Russian-UK joint venture TNK-BP said this week that its board of directors had approved the company's business plan for 2006 and a five-year development program. According to the business plan, the company's capital investment will total...

Strike One: Lukoil Talks Up Oil Find In Iran.
December 13, 2005... A joint venture between Lukoil and Norsk Hydro has made a major discovery of oil at a field in western Iran, the Russian company said this week, though the Norwegian partner quickly moved to call Lukoil's announcement "premature." Lukoil,...

Blockhead: Tatneft Signs Deal In Libya.
December 13, 2005... Tatneft announced this week it had signed a contract with Libyan state National Oil Corp. (NOC) to explore and develop Block 82-4 in the Ghadames Basin, awarded in the second Epsa-4 licensing round. The Russian oil producer also took part...

Onward And Upward: Russians Rise In PIW Top 50.
December 13, 2005... Lukoil is the leading oil company in Russia and ranks 19th in the world, according to this year's PIW Top 50, a ranking of the world's top oil companies published by Nefte Compass sister publication Petroleum Intelligence Weekly. Saudi Aramco...

Strange Brew: Crude Exports, Domestic Product Supplies Spike.
December 13, 2005... Russian crude exports spiked sharply in November in an unexpected reversal of the trend from recent months, when Russia's imposing taxes and the onset of cold weather forced more product to stay at home. Russian oil and gas companies...

Azerbaijan: Socar Chief Natik Aliev Becomes Oil Minister.
December 13, 2005... Natik Aliev has left state oil company Socar to become minister of energy and industry, in a move that is seen as giving the ministry more weight in the future. He replaces Mejid Kerimov, who moves to head up state chemicals group...

Lithuania: Kazmunaigas Keeps MN Bid Rolling.(Mazeikiu Nafta)(Brief Article)
December 13, 2005... Kazakh state Kazmunaigas expects to be able to supply crude to Lithuanian refiner Mazeikiu Nafta (MN), despite Russian pipeline operator Transneft's refusal to pump additional volumes of Kazakh crude to the refinery. The Kazakh company may...

Kazakhstan: Shell Makes Caspian Breakthrough.
December 13, 2005... Royal Dutch Shell has signed a production sharing agreement to explore the offshore Pearls Block, in a major breakthrough for investors eyeing the opening of the Caspian Sea. Shell has been eagerly chasing the central block, which is...

Kazakhstan: Questions Linger Over China Pipeline.
December 13, 2005... President Nursultan Nazarbaev and Chinese leader Hu Jintao were due to attend a ceremony on Dec. 15 to mark the start of filling the Kazakh-China oil pipeline that runs east from the Atasu pumping station to the Alashankou on the two countries'...

Kazakhstan: Big Sky Spreads From West To East.(Big Sky Energy Corp.)(Remas Corp)
December 13, 2005... Calgary-based Big Sky Energy Corp. is having a burst of activity, purchasing a 50% interest in a block on the eastern border with China and boosting its presence in the oil producing heartland of western Kazakhstan. But Nurlan Balgimbaev,...

Romania: Rompetrol Buys French Network.
December 13, 2005... Romanian oil company Rompetrol said last week that it had signed a binding agreement to purchase 100% of French fuel distributor Dyneff and affiliated companies. The price and terms were not disclosed, pending closure of the sale in the first...

Ukraine: Regal Claims Victory In Courtroom Duel.(Regal Petroleum Ltd.)(Brief Article)
December 13, 2005... UK independent Regal Petroleum announced last week that the Supreme Commercial Court of Ukraine has dismissed the latest appeal brought by state-controlled Chernihivnaftogaz over joint venture asset compensation, thus likely bringing to a close...

Romania: German-Russian Firm Signs Gas Supply Deal.
December 13, 2005... Germany's Wintershall says that WIEE, the Eastern Europe gas wholesaler it equally owns with Russia's Gazprom, has signed a 2006-12 supply agreement with Romanian distributor Distrigaz Sud for a total of just over 9 Bcm of gas. Distrigaz Sud,...

First Night: TNK-BP Makes Market Debut.
December 13, 2005... Russia-UK joint venture TNK-BP made a long-awaited stock market debut last week, valuing the firm at $40 billion. The company's official listing on the benchmark Russian Trading System (RTS) crystallizes a deal struck in 2003, when three...

Shared Out: Parliament Approves Gazprom Share Reform.
December 13, 2005... Russia's State Duma, or lower house of parliament, approved a bill on Dec. 9 that paves the way for Gazprom's share liberalization. The bill includes amendments to the Law on Gas Supplies, canceling a 20% limit on foreign ownership of...

Equities and Currencies.
December 13, 2005... Share Prices Closing On Dec. 13, 2005

Crude Oil: Futures Held Hostage By Wind And Weather.
December 13, 2005... Crude oil futures remain hostage to wind and weather but another cold snap on both sides of the Atlantic saw January Brent prices rally again from $56.85 low on Dec. 7 to a high of $59.98 on Dec.13. The weekly inventory report from the US...

Products: Differentials Drift, Cash Values Improve.(Brief Article)
December 13, 2005... The market for Russian gas oil drifted sideways for much of the reporting week with price differentials eventually ending almost unchanged as demand met traders unloading stockpiles before the end of the year. Cash values, however, firmed with...

Star Stock: Gazprom To Take Emerging Share Markets By Storm.
December 26, 2005... Just in time to fulfill a long-held promise to foreign investors, Moscow has approved the full liberalization of the share market of state-controlled Gazprom, setting the stage for the gas behemoth to take the lead spot among emerging-market...

Showdown: Moscow Makes An Example Out Of Ukraine.
December 26, 2005... Gazprom is facing a stiff test as talks over gas supplies to Ukraine failed to reach an agreement for 2006 just days before a threatened Jan. 1 cutoff. On the one hand, the Russian gas giant does not want to jeopardize vital supplies to...

Building Bridges: Russia Puts Opec On G8 Agenda.
December 26, 2005... In a push for global energy security, Russia wants to strengthen the dialogue between Opec and top oil consumers when it assumes its role as president of the G8 group of industrial nations next week. After a meeting in Moscow with Opec...

Planning Ahead: Russneft Maps Out 2006 Plan, Acquires New Assets.
December 26, 2005... Russia's fast-growing oil company Russneft plans to increase its revenue to $1 billion in 2006, compared with $700 million forecasted for this year. The privately owned company's net profit in 2005 will total about $500 million, in...

Bengal Block: Gazprom Starts Drilling In India.
December 26, 2005... In line with its strategy of becoming a global energy player, Gazprom is pushing ahead with plans to develop offshore oil and gas reserves in India. The Russian gas giant and Gas Authority of India Ltd. (Gail) have started drilling their...

Nefte Compass.
December 26, 2005... Nefte Compass will not be published during the Russian holiday period in early January. The next issue will be published on Thursday, Jan. 12.

In Control: Sibneft May Manage Gazprom Oil Units.
December 26, 2005... Russian oil producer Sibneft will continue to operate independently from new owner Gazprom, and may take control of the management of the gas behemoth's other oil units, Sibneft president Alexander Ryazanov said following his confirmation by...

Tender Spot: Gazprom, Slavneft Win New East Siberian Licenses.
December 26, 2005... Russian gas giant Gazprom and oil company Slavneft have expanded in East Siberia by winning more licenses to develop reserves in the Krasnoyarsk region, according to local media reports. Gazprom acquired at an auction a license to develop...

Cleaning Up: Rosneft Agrees To Repay Yukos Debt.
December 26, 2005... In a bid to improve its image in the run-up to an initial public offering, Russian state Rosneft reportedly has agreed to repay a consortium of Western banks the remaining balance of a loan taken out by fallen oil major Yukos. Rosneft...

Moving On: Total Wins Approval For Kharyaga Budget.(Brief Article)
December 26, 2005... The Total-operated Kharyaga project gained fresh impetus last week after a combined committee of the project's production sharing agreement approved its budget for 2006. Under the committee's decision, the project's 2006 budget will total...

Road Map: Swedish Independent Sets Out 2006 Plan.(Brief Article)
December 26, 2005... Sweden's West Siberian Resources (WSR), which is trying to increase its presence on the Russian oil scene, plans to invest $69 million in the development of its fields in 2006. According to WSR's largest shareholder and managing director,...

January Sales: Winter Forces Cut In January Crude Loadings.
December 26, 2005... Winter weather has finally caught up with Russia, forcing Moscow to cut its January seaborne crude exports by a modest 21,000 b/d from the previous month, with downturns at Russia's two largest ports in the north and the south (see p7). ...

Azerbaijan: Iran Gas Swap To Give Nakhichevan A Break.
December 26, 2005... Iran has inaugurated a gas swap project with Azerbaijan to deliver Azeri natural gas to Iran in return for Iranian gas supplies to the Azeri enclave Nakhichevan, reported Iranian state news agency IRNA . Nakhichevan is surrounded by...

Caspian: Oil Industry Mourns Aircraft Crash Victims.
December 26, 2005... Oil executives working in the Caspian were among the 23 passengers and crew killed when an Azerbaijan Airlines flight to Aktau in Kazakhstan crashed soon after taking off from Baku on Dec. 23. One of the victims was Jim Hardy, 56, from...

Romania: Petrom Wins Three Exploration Blocks.
December 26, 2005... Petrom, owned 51% by Austria's OMV, has won a contract for exploration licenses for three blocks covering around 15,000 sq km in Romania. Petrom won the blocks against international bidding in a tender organized by the National Agency for...

Just A Ride: Oil Price Spells Success In 2005, Less In 2006.
December 26, 2005... After a dismal 2004, the Russian stock market put doubters to rest in 2005, as benchmark Russian stock index RTS climbed to 1,150 points, up over 90% since the start of the year. Driven by booming oil prices that successfully swept away much of...

Crude Oil: Uncertain Sentiment, Modest Activity.
December 26, 2005... Crude oil futures vacillated in a $2 range during a reporting period of uncertain market sentiment and thin trading activity. Brent futures hit a $57.73 pre-Christmas high on Dec. 22 on reports of civil strife in Nigeria and a somewhat over...

Products: Colder Weather Fails To Dent Thin Market.
December 26, 2005... The market for Russian gas oil was slightly weaker this week on the back of softening crude prices and despite cold weather throughout the important Northwest European markets. Activity was relatively quiet in the final week of the year due...