NEFTE Compass articles from February 2003

NEFTE Compass archives from February 2003

License To Drill: From Russia With Love: Moscow's Mixed Bag.(oil drilling agreements)
February 5, 2003... Russia signed up more oil business in Iraq this week, but there is creeping concern in Baghdad at what are seen as mixed signals from Moscow regarding the storm gathering over Iraq. Russia's ambassador to Iraq, Vladimir Titorenko, said in...

Never Say Die: Lukoil Takes Greek Rejection In Stride.(Hellenic Petroleum)
February 5, 2003... Lukoil finally seems to have learned to take "no" for an answer. In a statement on Feb. 4, Russia's largest oil company backtracked on the previous day's position and acknowledged that its joint bid with Greece's Latsis Group to buy a...

Barging In: Oil Majors Muscle Into MVK.
February 5, 2003... As the government drags its feet on ways to ease export bottlenecks, Russian oil companies are muscling their way in. Deputy Prime Minister Viktor Khristenko has agreed to let Russia's oil majors have a direct say in the MVK...

Drill Bits: Schlumberger Eyes Lukoil Drilling Unit.(negotiations)(Brief Article)
February 5, 2003... Lukoil is following in the steps of Sibneft by negotiating to sell its West Siberian drilling units to Schlumberger, the international oil field services company. Lukoil vice president Leonid Fedun said the Russian oil company was in talks with...

Long Haul: Lukoil To Send Products To Sri Lanka.(Ceylon Petroleum Corp.)(Brief Article)
February 5, 2003... In a sign of Lukoil's expanding international presence, the Russian oil company is set to deliver a shipment of 170,000 bbl of gas oil and kerosene to Sri Lanka's state-owned Ceylon Petroleum Corp. (Ceypetco). Ceypetco selected Lukoil to...

Green Light: Sakhalin-2 To Declare Lunskoye Commercial In Q2.(Brief Article)
February 5, 2003... The Royal Dutch/Shell-led Sakhalin Energy consortium says it should declare the commerciality of its Lunskoye gas field in the Sakhalin-2 concession area in the second quarter of this year. But for this to happen, the project's shareholders...

Blown Away: Storms Fail To Hamper January Products Loadings.(oil exports and shipment)(Brief Article)
February 5, 2003... Russian oil products exports followed seasonal trends in January, with gas oil exports rising and fuel oil falling from the previous month's levels. Delays caused by ice in the north and storms in the south failed to put a crimp the overall...

Technical Hitch: Blue Stream Launch Delayed Amid Corruption Charges.(commercial gas deliveries )
February 5, 2003... The much-heralded start of commercial gas deliveries to Turkey via the Blue Stream pipeline under the Black Sea had to be put off from the launch date of Feb. 3 because of problems at a compressor station on the Russian side. The latest...

Well Being: Sibneft Taps Services To Support Growth.(Sibneft Oil)(Deutsche Tiefbohr AG)
February 5, 2003... Sibneft, Russia's fastest-growing oil producer for two years running, has turned to foreign service providers to show that Russian oil majors do not need joint-venture partners to close technology gaps with the big Western players. Under a...

Kazakhstan: Shell Snaps Up Kerr-McGee Assets.(Royal Dutch-Shell Group of Cos.)
February 5, 2003... After months of negotiations, Royal Dutch/Shell has finally agreed to buy the Kazakh assets of US independent Kerr-McGee in a deal worth $165 million that is due to be signed an sealed at the end of March. The acquisition will give Shell its...

Kazakhstan: Gazprom Casts Around For Gas Concessions.(Gazprom Russian Joint Stock Co.)(Brief Article)
February 5, 2003... In its bid to cut gas production costs, Russian gas monopoly Gazprom is eyeing gas reserves in CIS countries that offer more favorable taxation terms. Gazprom is considering plans to develop the Imashevsk gas and condensate field in...

Hungary: ENI Secures More Gas Customers.(MOL Rt)(Tigaz)(Brief Article)
February 5, 2003... Hungarian gas distributor Tigaz, controlled by ENI subsidiary Italgas, has bought majority stakes in four regional gas companies from Hungarian state oil and gas firm Mol for $90.9 million. Mol-Gaz, Zsamberkgaz, Gerecsegaz, and Turalgaz --...

Cashing In: TNK Expands Eurobond Issue To $700 Million.(Tyumenneft)(Brief Article)
February 5, 2003... Tyumen Oil Co. (TNK) has placed eurobonds with a face value of $300 million, in a bid to refinance its more expensive short-term borrowings. The five-year paper carries an annual yield of 9.46% and matures in November 2007. The placement...

Third Strike: Lukoil Reports Lackluster Q3 Results.(Brief Article)
February 5, 2003... Lukoil has disappointed analysts by reporting third-quarter results that were well below expectations. Russia's number one oil producer earned a net profit of $507 million in the third quarter of 2002, representing a 7% gain on the same...

Equities And Currencies.(Brief Article)
February 5, 2003... Share Prices Closing On February 4, 2003

Crude Oil: Futures And Physical At Odds.
February 5, 2003... Despite increasing evidence of amply supplied physical markets Brent futures on Feb. 5 traded back up to the $31.80 two-year highs first reached on Jan. 16. The rally was driven by a mixture of war fever induced by a long-awaited address by US...

Products: North Gets Soggy, South Gets Toppy.(gas oil, fuel oil)(Brief Article)
February 5, 2003... Russian gas oil shipments out of the Baltic Sea ports over the past week totaled a massive 634,000 metric tons. Ventspils exported 324,000 tons, as the port unloaded a build-up from rail shipments of 30,000 tons per day. High stocks at the...

Leap Forward: TNK Deal Presents Huge Marketing Leap For BP.(British Petroleum Company PLC, Tyumen Oil Co)
February 11, 2003... BP's new joint venture with Tyumen Oil Co. (TNK) will present a tremendous marketing opportunity for the UK oil company, which already has one of the biggest trading operations of any foreign company in Russia. Marketing arrangements have...

Step Backward: Lukoil Loses Battle for Iraq's West Qurna.
February 11, 2003... Russia's Lukoil has lost its battle with Baghdad to keep the West Qurna development contract, according to acting Iraqi Oil Minister Samir Abdul Aziz al-Najm. The deal was terminated last December after the government learned of the...

Giant Step: BP And TNK Tie The Knot.
February 11, 2003... BP has flagged Russia as one of its core growth regions by announcing plans on Feb. 11 to plow $6.75 billion into a joint venture with former adversary Tyumen Oil Co. (TNK) -- a move that would create Russia's third-largest oil company with...

Westward Flow: Armada Of Russian Heating Oil Heads To US.(Brief Article)
February 11, 2003... An armada carrying a massive 1.2 million metric tons of Russian heating oil will reach US shores between now and the middle of March, nearly double the volume shipped in the same period last year. Almost the entire loading program at...

Two In One: Compromise Reached For Rival Eastern Pipelines.
February 11, 2003... The Russian government appears to have decided to back a compromise between rival oil export schemes that would merge a pipeline project to China with a rival route to the Russian Pacific port of Nakhodka. The decision to combine the...

Damascus Road: Zarubezhneft Sets Up Shop In Syria.(Syrian Petroleum Co joint ventures)(Brief Article)
February 11, 2003... Russian state-owned oil companies Zarubezhneft and Syrian Petroleum Co. signed a joint-venture deal in Damascus on Feb. 9 to develop oil and gas fields in Syria, and other countries in the region, including Libya, Turkey, and Sudan,...

German Morsels: Germans Buy More Caspian Crudes.(Brief Article)
February 11, 2003... There were big rises in crude oil exports by Russia and other CIS republics last year to Germany, Western Europe's largest economy, despite a 0.3% decline in the country's overall crude imports to almost 2.1 million b/d. Russia retained...

New Markets: Gazprom Seeks Openings In Asia, South Europe.(Brief Article)
February 11, 2003... Russian gas monopoly Gazprom is casting its eyes towards the gas markets of Asia and the Middle East, as well as seeking new opportunities in southern Europe. During last week's visit to Moscow by Pakistani President Pervez Musharraf,...

High Voltage: Power Reform Hangs In The Balance.
February 11, 2003... The restructuring of Russia's electricity sector, sometimes described as the most inefficient in the world, may be decided on Feb. 14 when the State Duma lower house of Parliament is expected to give a reform bill its crucial second reading....

Kazakhstan: Lukoil Clinches Role In Caspian Exploration.
February 11, 2003... State oil company Kazmunaigas (KMG) and Russia's Lukoil have signed a memorandum of understanding for joint exploration of Kazakh acreage in the Caspian Sea. Lukoil President Vagit Alekperov signed the agreement with his KMG counterpart,...

Latvia: Tanker From Ventspils Runs Aground.(Brief Article)
February 11, 2003... An oil tanker carrying 35,000 metric tons of Russian gas oil ran aground off Denmark late last week but no immediate spill was reported in the area, which is noted for its wildlife, a Danish Royal Navy spokesman said. The Bahamas-flagged...

Azerbaijan: Shah Deniz Sanctioning Date Looms.
February 11, 2003... The BP-led $3.2 billion project to develop the offshore Shah Deniz gas field and build a pipeline to Turkey is due to be sanctioned on Feb. 27, but not all the partners have their finances in order. The European Bank for Reconstruction and...

Lithuania: Yukos Turns The Corner With Mazeikiu Nafta.
February 11, 2003... Operated by RussiaAEs Yukos, Lithuania's national oil company Mazeikiu Nafta (MN) is starting to turn the corner. MN reported a loss of 122.7 million Lithuanian litas ($37.1 million) in 2002, in preliminary non-audited GAAP accounts, a...

Central Europe: OMV Buys Into Strategic German Refinery.(Brief Article)
February 11, 2003... Austria's OMV has clinched a 377 million euro ($405 million) deal to buy a package of BP assets in central Europe, comprising a 45% stake in southern Germany's Bayernoil refinery network, 313 filling stations, and an 18% stake in the Trans...

Kazakhstan: Refinery Runs Target 9% Growth.(Brief Article)
February 11, 2003... Crude processing in Kazakhstan's three refineries is set to rise by 9% in 2003 to 8.5 million metric tons, the Ministry of Energy and Natural Resources says. Throughputs in 2002 totaled 7.8 million tons, which was up 2.6% on 7.6 million...

The Convert: Yukos Approves Plan To Convert VNK Shares.(Eastern Oil Co)(Brief Article)
February 11, 2003... At an extraordinary general meeting, Yukos shareholders overwhelmingly approved a plan to convert the shares of affiliate Eastern Oil Co. (VNK) into Yukos stock, clearing the way for the companies to become a single legal entity. In line...

Gazbond: Gazprom To Launch Delayed Bond Issue.(Brief Article)
February 11, 2003... Russian gas monopoly Gazprom will go ahead with the placement of a 10-year, $1 billion eurobond issue that was approved by the company's board at the beginning of the year. Concerns over the looming war in Iraq caused the company to put off...

Equities And Currencies.
February 11, 2003... Share Prices Closing On February 11, 2003

Crude Oil: Increasing Uncertainty Underpins High Prices.
February 11, 2003... The geopolitical uncertainty centered on Iraq, which has underpinned oil prices for at least 12 months, has increased with a French-German-Belgian initiative that has split the Nzto alliance by blocking contingency planning for the defense of...

Products: Backwardation Kills Prompt Demand.
February 11, 2003... Russian gas oil differentials strengthened in Northwest Europe as buyers there bid up prices to compete with bids from the US. In the Mediterranean, gas oil differentials were down as the effects of a backwardated market took hold. Russian...

Biting The Bullet: Russia Cracks The Whip To Debottleneck Ports.
February 18, 2003... As Russia's beleaguered ports struggle to clear out backed-up oil volumes, Moscow is looking for ways to slash the loading schedules to bring them in line with the actual shipments. The state has given its backing to a proposal by Deputy...

Jumping The Gun: Wrinkles Appear For BP-TNK Venture.(Tyumenneft)(British Petroleum Company PLC)
February 18, 2003... Now that the euphoria over BP's $6.75 billion deal with Tyumen Oil Co. (TNK) is dying down, some niggling problems are beginning to surface. BP has seriously ruffled the feathers of Russia's state-owned oil company Rosneft, which is its...

Due Process: Refiners See Static Demand After Bumper Year.(Brief Article)
February 18, 2003... Russia's refineries racked up their crude processing runs by 3.7% in 2002, chiefly because of higher domestic demand. However, analysts believe that the outlook for 2003 is unlikely to change significantly because levels of domestic fuel oil...

Friends: Friendship Opens Door To Business In Iraq.
February 18, 2003... Wanna do business in Iraq? Then set up a friendship society or charitable fund. Such demonstrations of solidarity with the Iraqi people are a good way of establishing business contacts in Baghdad, in turn allowing the organizations to smooth...

Electric Avenue: Duma Gives Blessing For Power Reform.(Brief Article)
February 18, 2003... The reform process needed to reshape Russia's electricity sector -- which has been stalled for months by legislative wrangling -- has finally been given a tentative go-ahead from the State Duma lower house of parliament, which on Feb. 14 gave...

Persian Cats: Lukoil Makes Its Debut In Iran.(National Iranian Oil Co.)(Brief Article)
February 18, 2003... Lukoil has made its upstream debut in Iran by acquiring a 25% stake in the $137 million project led by Norsk Hydro to explore for oil in the onshore Anaran block near the Iran-Iraq border. Lukoil, which says the undeveloped block could have...

Eastern Promise: Japan Offers Guarantees For Nakhodka Line.
February 18, 2003... In an effort to coax Russia to build a crude oil pipeline to the Pacific port of Nakhodka, the government of Japan has sent Moscow a guarantee that it would buy a minimum of 50 million metric tons of crude per year (1 million b/d) from the...

Just Say No: Russia Says No To New PSAs.
February 18, 2003... Yukos' crusade against production sharing agreements (PSAs) in Russia is bearing fruit. A government meeting on Feb. 18 devoted to the issue ruled that PSAs should be used "in exceptional circumstances and only when necessary." The PSA...

French Lesson: Total To Plow $3 Billion Into Vankor.(Vankor oil field)(Brief Article)
February 18, 2003... Hot on the heels of BP's headline-grabbing deal with Tyumen Oil Co. (TNK), Total Fina Elf has announced it will plow up to $3 billion into developing the Vankor oil field in East Siberia. The statement coincided with a visit by Francois...

Closing In: Rosneft Seals Controversial Northern Oil Deal.(Brief Article)
February 18, 2003... Russian state-owned Rosneft has confirmed it will pay $600 million to acquire 100% of independent producer Northern Oil (Severnaya Neft). The deal has to be approved by a Rosneft board meeting, the date of which has yet to be announced. By...

Auction Block: East Siberian Field Comes Back On Sale.
February 18, 2003... The government is to have a third stab at auctioning the huge Talakanskoye oil and gas condensate field in Eastern Siberia, which could potentially supply China. The Ministry of Natural Resources has drawn up new terms for the sale and has...

Yukos Chief Sues Bloomberg For Libel.(Brief Article)
February 18, 2003... Mikhail Khodorkovsky, chairman and chief executive of Russian oil company Yukos, is suing US financial news service Bloomberg for libel through the UK courts. Khodorkovsky is seeking damages for libel in connection with articles published on...

Strategic Move: Energy Strategy To Be Adopted In May.
February 18, 2003... The Russian government is pushing ahead with a program for the country's long-term energy strategy, mapping out perspectives for the sector's development as a whole and its individual branches as well. Prime Minister Mikhail Kasyanov, who...

Big Mac: Primorsk To Overtake Novo As Main Port.(Petroleum Industry)
February 18, 2003... Export bottlenecks are forcing Russia to think big with its expansion plans for Primorsk. It wants to anoint the Baltic Sea port as Russia's main export outlet, usurping Novorossiysk from the distinguished number one spot. State pipeline...

Russia To Slash Gas Supplies.(Brief Article)
February 18, 2003... Poland has finalized a deal to reduce by one-third its gas purchases from Russia under a 25-year take-or-pay contract signed in 1996. "As a result of this agreementawe will not have to pay for unused gas," a Polish official said, adding:...

Azerbaijan: Taurus Scoops Up Latest Socar Tender.(Taurus Petroleum inc)(Brief Article)
February 18, 2003... Taurus Petroleum has won the latest tender from Azeri state oil company Socar. Lukoil-linked Taurus will pick up a 135,000-ton crude cargo to be loaded out of the Russian Black Sea port of Novorossiysk next month. Traders bid aggressively...

Azerbaijan: Japanese Weigh Caspian Gas Shows.(Brief Article)
February 18, 2003... The Japan Azerbaijan Oil Co. (JAOC) has encountered gas shows with its second well on the Ateshgyah, Yanan Tava, and Mugan Deniz Block, but reports from Baku say it is too early to say if the discovery is commercial. One report said that...

Hungary: Mol Warns Of Losses In Gas Business.(Brief Article)
February 18, 2003... Oil and gas company Mol has warned that its price-capped gas business will plunge back into heavy losses this year. A strong local currency that helped the business almost break even last year is faltering, while Russian gas import prices...

In And Out: BP Converts Bond Into Lukoil Shares.(British Petroleum Company PLC )(Brief Article)
February 18, 2003... At the same time as BP steps up its ties with Tyumen Oil Co., the UK major is winding down its relationship with Lukoil. BP has announced that it has completely redeemed a $420 million, five-year bond, as investors have converted the entire...

Down Town: Profits Plunge At Gazprom And Yukos.(net profits )(Brief Article)
February 18, 2003... Gazprom and Yukos have both reported sharp drops in profits for the first nine months of 2002. Gazprom said its net profit for Jan.-Sep. last year fell 57% to 15.963 billion rubles ($503 million) from 37.206 billion rubles in the same...

Equities And Currencies.
February 18, 2003... Share Prices Closing On February 18, 2003

Crude Oil: Off Recent Highs, But Still Strong.(Petroleum Industry)
February 18, 2003... War fever drove Brent futures to new two-year highs of $33.10, but prices then fell back $1.42 to a low for the week of $31.68 when the UN weapons inspectors delivered a softer than expected report on Iraqi disarmament issue to the Security...

Products: US Supports Russian Gas Oil.(Brief Article)
February 18, 2003... The price differential for Russian gas oil in Northwest Europe has strengthened with a strong arbitrage into New York Harbor putting a floor under the market. Gas oil differentials in the Mediterranean also firmed, as demand returned to the...

Kashing In: BG Sounds Out Buyers For Kashagan Stake.(Centrica PLC)
February 25, 2003... UK company BG is sounding out the market with a view to finding a buyer for half its 16.67% stake in Kazakhstan's Kashagan oil and gas field, one of the largest fields in the world -- and potentially one of the riskiest. One possible buyer...