NEFTE Compass articles from February 2004

NEFTE Compass archives from February 2004

No Way: Resource Nationalism Takes Hold In Russia.
February 3, 2004... Russia is sending out signals of a growing reluctance to cede control of strategic industries such as oil and gas to foreigners. Moscow refused last week to give Exxon Mobil a license to develop the Sakhlain-3 acreage on the Pacific shelf,...

Route One: Kazakh Exporters Turn To BTC Pipeline.(Baku-Tbilisi-Ceyhan)
February 3, 2004... Now that the 1 million-barrel-per-day Baku-Tbilisi-Ceyhan (BTC) pipeline is on course to swing into action early next year, oil producers in Kazakhstan are taking a closer look at how they can access a link that provides a clear route to the...

Saddam's List: Russians Deny Receiving Bribes From Saddam.
February 3, 2004... A string of denials has been issued by Russian groups that were on the list published in Iraq's Al-Mada newspaper of those that allegedly received oil lifting rights from Iraq's former leader Saddam Hussein, in exchange for political support of...

Short Season: Storms And Congestion Slim January Exports.
February 3, 2004... Russian crude exports fell last month as winter storms hammered port loadings in the Black Sea and shipments remained bottlenecked by congestion in the Turkish straits. Deliveries via the Transneft national pipeline system to ports and...

Straitjacket: Bosporus Congestion Shifts Products Exports North.(fuel oil shipments)(Brief Article)
February 3, 2004... Severe congestion causing long delays for tankers passing via the Bosporus through the Turkish straits resulted in a surge of oil products exports from the Baltic Sea ports in January. Higher freight rates associated with Black Sea shipments...

American Beauty: Rosneft And Marathon Flesh Out Joint Venture.(Marathon Ashland Petroleum L.L.C.)
February 3, 2004... A joint venture between state-owned Rosneft and Marathon to ship Russian crude to the US is taking shape. Rosneft may contribute its 50,000 b/d Northern Oil producing subsidiary, while Marathon has offered to throw in Khanty-Mansiysk Oil...

Reversal: Ukraine Rejects Odessa-Brody Reversal.(crude exports and shipment)(Odessa-Brody pipeline )(Brief Article)
February 3, 2004... Ukraine has refused to reverse the idle Odessa-Brody pipeline and ship Russian crude south to the Black Sea, cutting off one of Russia's few near term options for increasing its export capacity. Russian exporters stood to gain some 9...

Collateral: Itera Secures $200 Million Loan.(Itera (Russia))(Brief Article)
February 3, 2004... Russian gas trader and producer Itera has received a $200 million loan from Russia's Sberbank, backed by a controlling stake in its most attractive gas producer, Sibneftegas. The five-year facility, secured by a 51% stake in Sibneftegas,...

Mutiny At Sea: Exxon's Partners Mutiny In Sakhalin-1.(Exxon Mobil Corp. accused of overspending)(Brief Article)
February 3, 2004... Bickering over costs has sparked a mutiny inside Exxon Mobil's Sakhalin-1 project, as the US supermajor's partners accuse it of overspending while Exxon argues it is still within the budget. Rosneft president Sergei Bogdanchikov says Exxon...

Right On: Ritek Expands Export Facilities.(export growth)(Brief Article)
February 3, 2004... Lukoil subsidiary Ritek is enjoying solid production and export growth as it reaps the rewards of making considerable investments in exploration and production in West Siberia. The producer boosted crude output last year by 23% to 2.9...

Tie Off: Yukos And Sibneft Agree To Part Ways.(Sibneft Oil)(YUKOS Oil Co.)
February 3, 2004... Yukos and Sibneft have agreed to untangle in a "mirror deal" that will unravel their ill-fated merger without Sibneft shareholders paying any compensation. The new transaction would reverse a share-swap that saw Yukos give up 26% of its...

Racing Ahead: Lukoil Bumps Up Production Targets.(planning)(Brief Article)
February 3, 2004... Lukoil has drawn up more ambitious output growth plans, targeting a rate of 6%-7% for this year, up from its earlier goal of 4.3%. The new plan envisages crude output reaching 86.2 million-87 million metric tons (1.73 million-1.74 million...

Azerbaijan: Shah Deniz Gas Pipeline Gets Underway.(South Caucasus Pipeline Co.)
February 3, 2004... The first sections of pipe for the South Caucasus Pipeline (SCP), which will export gas from the Shah Deniz field in the Caspian Sea to Turkey, have been delivered to Azerbaijan, the pipeline's technical operator, BP, says. "The arrival of...

Azerbaijan: Vitol Wins Socar Crude Tender.(Brief Article)
February 3, 2004... Swiss trader Vitol has won the latest tender from Azeri state oil company Socar to lift 80,000 metric tons of Urals crude out of Novorossiysk. The cargo is scheduled to leave the Russian Black Sea port in late February, but the shipment...

Kazakhstan: China Pipeline Starts To Take Shape.(Brief Article)
February 3, 2004... Construction of a 3,000-kilometer oil pipeline from Kazakhstan to China could start this summer if the two sides can finalize an agreement, says Uzakbay Karabalin, the president of Kazakh state oil and gas company Kazmunaigas. Plans for...

Kazakhstan: Former Canadian Premier Joins PetroKazakhstan.(Brief Article)
February 3, 2004... Calgary-based PetroKazakhstan has appointed former Canadian prime minister Jean Chretien as a special adviser to the company on international relations. Chretien, a former minister of energy, mines and resources, served as Canada's prime...

Kazakhstan: Pipeline Leaks Highlight Need For Upgrading.(Brief Article)
February 3, 2004... The poor state of Kazakhstan's oil pipeline network has been highlighted by two separate cases of pipelines rupturing because of rust, according to local press reports. The Novi Uzen-Atyrau-Samara pipeline, which links fields in the Uzen...

Events.
February 3, 2004... International Conference on New Оpportunities and Markets for Оil Exports from Russia and the Caspian Region, Moscow, Mar. 2-3, RPI, www.rpi-inc.com, +7 (095) 502-5433, 778-4597 Russian Economic Forum, London, Apr. 18-20,...

Fundraiser: State To Offload Remaining Lukoil Stake.(Brief Article)
February 3, 2004... The Russian government plans to use the domestic market to privatize its remaining 7.6% share in Lukoil by the end of June. Analysts expect the budget to rake in around $1.7 billion from the sale, but say that more money could be raised if...

Leap Year: Yukos Profits Jump 55%; Tax Demands Rise.(Brief Article)
February 3, 2004... Beleaguered oil giant Yukos reported a 55% rise in earnings for the third quarter of last year, in accounts prepared according to US GAAP standards. Yukos said that high output and prices boosted net profits to $1.32 billion in the third...

Equities And Currencies.
February 3, 2004... Share Prices Closing On February 3, 2004

Crude Oil: Shorter Delays Pressure Differentials.
February 3, 2004... The speculative sell-off that started last week continued to push prices down. Brent hit a Jan. 29 low of $28.81 before staging a limited recovery. European crude oil is under pressure with both sweet and sour differentials declining....

Products: Mild Med Makes Gas Oil Crash.(Brief Article)
February 3, 2004... In the Mediterranean gas oil differentials crashed amid milder weather and a return of sellers to the market. But the reemergence of an arbitrage to Asia is relieving the Med of some extra fuel oil barrels and helping to counter sluggish...

High Pressure: Gazprom Piles The Pressure On TNK-BP Over Kovykta.
February 11, 2004... Gazprom has stepped up the pressure on TNK-BP to be granted a role in the $18 billion project to develop the Kovykta gas field in Eastern Siberia and pipe the gas to China and South Korea. In a bid to exert control over the future...

Open Door: Russia And Kazakhstan Expand Energy Ties.
February 11, 2004... Moscow is expanding its energy cooperation with Kazakhstan, as it makes good on an earlier promise to boost crude transit volumes across Russian territory to world markets. Russia is keen to secure its position as the main transit corridor...

Inroads: Rosneft Makes A Move On Vankorskoye.(investments)
February 11, 2004... State-run Rosneft is making inroads into Eastern Siberia with plans to invest $800 million-$1.2 billion over 2004-07 into exploring and developing the Vankorskoye area. Rosneft president Sergei Bogdanchikov says the company plans to drill...

Gentle Nudge: Yukos Pushed Out Of Electricity Business.(Brief Article)
February 11, 2004... The Kremlin-backed onslaught against Yukos has taken yet another turn, as the Russian oil giant is being forced to give up its dreams of moving into the electricity business. Faced with a tax bill of 98 billion rubles ($3.44 billion), Yukos...

Adria OK: Ukraine Gives Green Light To Druzhba-Adria.(Brief Article)
February 11, 2004... The Ukrainian Parliament has ratified a draft law giving the go-ahead for the reversal of the Druzhba-Adria pipeline to pump Russian crude to the Croatian deepwater port of Omisalj on the Adriatic Sea, bypassing the Turkish straits. The...

Polygaz: Gazprom To Build Bashkir Polyethylene Plant.(Gazprom Russian Joint Stock Co., Salavat)(Brief Article)
February 11, 2004... The Salavat petrochemical plant, which is run by gas monopoly Gazprom, has signed a contract with Tecnimont, an engineering subsidiary of Italy's Edison, to build a high-density polyethylene plant in the Russian autonomous republic of...

One Way: Gazprom Goes For Direct Access To Europe.(Gazprom Russian Joint Stock Co.)(Brief Article)
February 11, 2004... Gazprom is pressing ahead with its ambitious project to obtain direct access to Western Europe's gas transportation system via a pipeline under the Baltic to Germany, bypassing all former Soviet transit countries. The gas giant revealed...

Baku Beyond: Moscow, Baku Discuss Energy Cooperation.(Brief Article)
February 11, 2004... Cooperation between Russia and Azerbaijan in the energy sector was one of the top items discussed by Russian President Vladimir Putin and his newly elected Azeri counterpart, Ilham Aliev, during their meeting in Moscow late last week. The...

New Russian: TNK-BP Looks Back On Fruitful Year Of 14% Growth.(Robert Dudley, interview)(Interview)
February 11, 2004... Since the joint venture between BP and Tyumen Oil Co. (TNK) was announced one year ago, a lot of hard work has gone into shaping TNK-BP as a Russian company with a completely new structure, says Robert Dudley, president and chief executive...

Caspian Armada: Caspian Shippers Rise To The Challenge.
February 11, 2004... A planned new terminal south of the Kazakh port of Aktau to transship future production from the giant Kashagan field combined with rising shipments of Russian crude out of Astrakhan has accentuated the need for larger oil tankers in the...

Kazakhstan: Total To Step Up Offshore Exploration.(Brief Article)
February 11, 2004... French oil major Total could find itself getting deeper into the Caspian Sea if forthcoming negotiations between Kazakhstan and Russian state oil company Rosneft bear fruit. Kazakhstan, which has selected Total as its strategic partner for...

Azerbaijan: Vitol Hauls In Another Socar Victory.(Brief Article)
February 11, 2004... Swiss trader Vitol has won its second straight Socar tender, this time to lift 130,000 metric tons (950,000 barrels) of Urals crude out of Novorossiysk on Mar. 16-17. The deal is rumored to have closed at a c.i.f. Augusta level equivalent to...

Kazakhstan: PetroKazakhstan Pumps Up Volumes To Iran.(Brief Article)
February 11, 2004... Canada's PetroKazakhstan plans to increase oil shipments to Iran's Tehran refinery to 21,000 b/d under a swap arrangement whereby it takes back delivery of Iranian Light on the Mideast Gulf. The Calgary-based company, which produces 100,000...

Thumbs Up: Turkey Gives Final Approval For Tupras Sale.(Brief Article)
February 11, 2004... Turkey has given its final approval for the $1.3 billion sale of a 66% stake in state refiner Tupras to a joint venture of Tatneft's Germany-based subsidiary, offtaker Efremov Kautchuk and its Turkish partner Zorlu Holding. A rival bid was...

First Timer: Mazeikiu Nafta Racks Up First Full-Year Profit.(profit anticipation by Mazeikiu Nafta)(Brief Article)
February 11, 2004... Lithuanian national oil champion Mazeikiu Nafta (MN) is anticipating its first full-year profit in 2003, as it continues to improve its financial performance under the benign patronage of Russia's Yukos. MN will rake in a net profit of...

Equities And Currencies.
February 11, 2004... Share Prices Closing On February 10, 2004

Crude Oil: Differentials Still Weak, But May Improve.
February 11, 2004... Opec's decision to eliminate about 1.5 million b/d of quota-busting production and to impose a 1 million b/d cut from Apr. 1 briefly took Brent futures back up over $30/bbl before prices retreated again on doubts about producer compliance. A...

Products: Opec Firms Gas Oil Futures, Fuel Oil Unmoved.(Brief Article)
February 11, 2004... Opec's unexpected crude production cut and move to eliminate excess production sent gas oil futures higher. The move left prices for Russian fuel oil largely unaffected. Russian 0.2% gas oil in the Med is talked at a $12/ton premium to...

Broadside: Moscow To Tackle Turkey Over Bosporus Logjam.
February 18, 2004... Russia is getting ready to tackle Turkey over the long queues of ships that have built up outside the Bosporus since Ankara introduced new tanker restrictions last November. Russian oil executives say they have evidence that ships carrying...

Price War: Platts Plans New Spot Assessment For Urals.
February 18, 2004... Platts is trying to introduce a new methodology for pricing Russian Urals spot cargoes in the Mediterranean, triggering some harsh criticism from traders, who say it threatens to crimp the liquidity of the world's most liquid physical crude...

Isolated: Transneft Tightens The Noose On Ventspils.
February 18, 2004... Russian state pipeline operator Transneft is continuing to ratchet up the pressure on the Latvian Baltic Sea port of Ventspils. The launch of the Baltic Pipeline System (BPS) "has made it possible for Russian oil to enter European markets...

Peace Offer: Yukos Shareholders Ready To Cede Control.
February 18, 2004... Major shareholders of besieged Yukos are ready to surrender their stake in the oil producer in exchange for the release of their jailed colleagues Mikhail Khodorkovsky and Platon Lebedev. No official offers, however, have been made to the...

Cutback: Surgutneftegas Is Reducing Exploration Program.(Brief Article)
February 18, 2004... Surgutneftegas this week announced a plan to reduce its exploration program in 2004 by 4.2% from last year. The company plans to reduce its total exploration drilling this year to 234,000 meters, despite its capacity for 300,000 meters/yr,...

Falling Down: Crude Shortage Hits Refinery Output.(Brief Article)
February 18, 2004... A fall in crude deliveries to Russian refineries in January resulted in Russia's production of oil products falling during the month from December. Nevertheless, the domestic market took delivery of more fuel oil according to operational data...

High Five: Tatarstan Approves $5.1 Billion Investment Program.(Brief Article)
February 18, 2004... The Russian autonomous republic of Tatarstan has approved an ambitious $5.12 billion investment program for its oil and gas sector in 2004-08. The Tatar republic hopes that implementing the program will allow it to stabilize its crude...

Refinement: Lukoil Eyes Refining Facilities Outside Russia.
February 18, 2004... Lukoil has declared that acquiring crude processing capacity outside Russia will be one of its major goals under a 10-year strategic development program. Lukoil deputy head of the strategic planning Sergei Rogov singled out North America...

Hard Sell: Lukoil Brings On Vysotsk Stronger Than Expected.
February 18, 2004... Russian oil companies are pressing full steam ahead with projects to boost export capacity. Lukoil is still on schedule to open its new outlet of Vysotsk in March, although the initial capacity of the terminal will be quite larger than...

Service Sector: Yukos Wants To Build Up Russian Oilfield Services.
February 18, 2004... Yukos wants to encourage the emergence of an efficient domestic oilfield services industry capable of competing effectively against Western-based services firms. "It's our ambition to create a healthy, competitive Russian oil services...

Drill Bits: Lukoil Bores First Well At Nakhodkinskoye.(Brief Article)
February 18, 2004... Lukoil is moving ahead with ambitious plans to get into the gas business. The company has started developmental drilling at the Nakhodkinskoye gas field in the far northern Yamal-Nenets autonomous region. The well will be drilled to a...

Taxing Time: Oil Companies Prepare For Tax Rise.
February 18, 2004... After the crackdown on Yukos, Russia's oil majors are preparing to shoulder a higher tax burden as Moscow cajoles them into greater cooperation with the state. Oil executives are concerned that the government doesn't go overboard with too...

Kazakhstan: Kiinov Outlines Growth Strategy.
February 18, 2004... Kazakhstan is pursuing ambitious plans to ramp up investment in its oil industry and significantly boost production, deputy minister of energy and mineral resources, Lyazzat Kiinov, told an Energy Institute conference in London this week. ...

Caspian Search: Lukoil Gets Green Light For Caspian Field.
February 18, 2004... Lukoil is to step up its exploration drive in the Caspian Sea after announcing that it had won approval from the Russian government to start work on the Yalama-Samur Block. The company said in a statement to the London Stock Exchange that...

Hungary: Mol Seeks Offers For Gas Businesses.(Brief Article)
February 18, 2004... Oil and gas group Mol said its 2003 profits rose steeply, driven primarily by higher refining margins and a one-time tax gain. The company also said it was looking for offers for its three gas divisions -- wholesale, transportation and...

Belarus: Russia Cuts Gas Supplies Over Payment Problems.(Brief Article)
February 18, 2004... Russian gas giant Gazprom cut gas supplies to Belarus by one third on Feb. 18 after the republic's state-controlled gas distributor Beltransgas failed to sign new purchase contracts. The move followed a statement by Gazprom trading...

On The Block: Irkutsk Offers Kovykta Stake For Sale.(Brief Article)
February 18, 2004... Authorities in Irkutsk region have unveiled a plan to sell the local government's 11.2% stake in the TNK-BP-led Rusia Petroleum, the license holder of the estimated giant Kovykta field in Eastern Siberia. Irkutsk governor Boris Govorin was...

Conversion: Zarubezhneft Gets A New Lease Of Life.(Brief Article)
February 18, 2004... President Vladimir Putin has ordered the government to transform the state-owned Russian foreign economic association Zarubezhneft into an open joint-stock company. The decree provides Zarubezhneft management with greater flexibility in...

Equities And Currencies.
February 18, 2004... Share Prices Closing On February 17, 2004

Crude Oil: Futures Get High Octane Boost.
February 18, 2004... Crude oil futures already high on expectations that Opec may deliver on its promises to increase production discipline and cut production by 1 million b/d from Apr. 1 got a further boost from US gasoline. A refinery outage in Texas triggered a...

Products: Through A Glass, Darkly.(Brief Article)
February 18, 2004... Arbitrage sales out of the Baltics are supporting the market for oil products in Northwest Europe and the Mediterranean. Recent deal evidence is practically unavailable, as most trading has relocated to the cocktail circuit of the IP Week...

Comeback: Lukoil Works Its Way Back Into Iraq.
February 25, 2004... One year after it suffered the humiliation of being booted out of Iraq, Lukoil is making good progress at working its way back into the good graces of the country's new rulers. Lukoil president Vagit Alekperov is due to visit Baghdad in the...

Backtrack: Kazakhstan Gets Kashagan Back On Track.
February 25, 2004... The world's biggest oil project, the $29 billion development of the Kashagan field in the Caspian Sea, got back on track this week when Kazakhstan and an Eni-led consortium agreed on a new timetable to bring production on stream, aiming to hit...

Sacked: Putin Breaks With The Past By Firing Kasyanov.
February 25, 2004... President Vladimir Putin closed another chapter in Russia's recent history this week when he sacked the cabinet of Prime Minister Mikhail Kasyanov, who has long been associated with the so-called "inner circle" of former president Boris Yeltsin...

Pacific Time: Moscow Leans Toward Pacific Pipeline.
February 25, 2004... The Russian government appears to be leaning heavily toward favoring a planned pipeline to the Pacific Ocean, rather than a competing scheme to China. Acting energy minister Igor Yusufov said his ministry believes that building the...

Sky High: Russian Crude Production Keeps Rising.(forecasts)(Brief Article)
February 25, 2004... Russia's crude and condensate production is racing ahead, forcing the Energy Ministry to bump up its earlier conservative forecast for the country's 2004 output. Output reached 8.85 million b/d (37.42 million metric tons) in January. ...

Total Recoil: Total Takes Russia Step By Step.(Brief Article)
February 25, 2004... Total recognizes Russia's huge potential but is more inclined to take projects on a case-by-case basis rather than taking an equity stake in a Russian company, the French major's chairman and chief executive, Thierry Desmarest, told a press...

Executive Suite: TNK-BP Director Sees Future For Foreign Investment.(Interview)
February 25, 2004... The door is still open for foreign companies to invest in the Russian oil sector, but the speed at which big international companies are entering Russia has slowed down, German Khan, the executive director of TNK-BP, says in an interview with...

Azerbaijan: Lukoil Wins Socar Urals Tender.(Urals Oil Co.)(Brief Article)
February 25, 2004... Russian oil giant Lukoil was announced the winner of a tender held by Azeri state Socar to buy an end-March cargo. The 586,000 bbl (80,000 metric ton) cargo of Urals blend crude will load out of the Russian Black Sea port of Novorossiysk,...

Hiccups: Gazprom Disrupts Supplies Via Belarus.
February 25, 2004... Russia's Gazprom quickly resumed "full volume" gas flows to and through Belarus after a cut-off on Feb. 18 and 19 that affected transit shipments as well as local supplies. Western European gas consumers experienced no difficulties with gas...

Ukraine: Ukraine Makes Ground On Odessa-Brody Pipeline.
February 25, 2004... Ukraine says it has reached a preliminary agreement with the European Bank for Reconstruction and Development (EBRD) to finance the construction of a pipeline to extend the Odessa-Brody pipeline to the Polish Baltic Sea port of Gdansk. ...

Kazakhstan: Outsiders Invited Into Karachaganak.(investment and finance)(Brief Article)
February 25, 2004... Kazakhstan is stepping up the pressure on Eni and BG, the joint operators of the gianta Karachaganak gas condensate field, by inviting other investors to join the project's third development phase. Uzakbay Karabalin, President of Kazakh...

Ukraine: Ilichevsk Opens New Fuel Oil Terminal.(Brief Article)
February 25, 2004... The Black Sea port of Ilichevsk has opened a new export terminal for fuel oil, with the capacity to load 3.2 million metric tons/yr. The new terminal shipped 30,000 tons in January from the Kremenchug refinery, which is controlled by...

Reprieve: Lawsuit Against TNK-BP Dismissed.(Brief Article)
February 25, 2004... TNK-BP has won a reprieve from the $1.5 billion lawsuit launched against the UK-Russian oil venture. The District Court of New York has refused to hear a case instigated by Norex Petroleum, alleging that TNK in 2001 illegally seized...

Extra Credit: Gazprom Sets Out Long-Term Borrowing Strategy.(Gazprom Russian Joint Stock Co.)(finance)(Brief Article)
February 25, 2004... Natural gas monopoly Gazprom's board of directors has approved a long-term borrowing program till 2013. Borrowing will be kept at a maximum of 150 billion rubles ($5 billion) per year, which could later be reduced to $2 billion-$4 billion...

Equities And Currencies.
February 25, 2004... Share Prices Closing On February 24, 2004

Crude Oil: Showing A Tentative Upward Bias.(gasoline prices)(Urals Oil Co.)
February 25, 2004... Crude oil futures received another high-octane boost from US gasoline prices that soared on reports of several more refinery glitches and yet another unseasonable stock draw. Trading activity in Urals crude has yet to pick up after last...

Products: Regional Demand Supports Gas Oil.(shipment)(Brief Article)
February 25, 2004... A loss of arbitrage opportunities has not dampened gas oil differentials, which have gained ground on resurgent local demand -- particularly in the Mediterranean. Fuel oil prices have shot up considerably after arbitrages to the US and Asia...