NEFTE Compass articles from February 2006

NEFTE Compass archives from February 2006

Shaken: Rosneft Rocked By CFO's Shock Departure.
February 6, 2006... The planning for Rosneft's initial public offering (IPO) got a bit more complicated this week following the unexpected ouster of the Russian state producer's chief financial officer, Sergei Alexeyev, as well as the head of Rosneft's investor...

Stirred: Itera Pins Comeback Hopes On Gazprom Deal.
February 6, 2006... Since the end of its glory days as a leading gas trader in the former Soviet Union, Russia-based, US-registered Itera has been struggling to find a strategy to go forward, dabbling in real estate and mulling downstream projects in India. ...

Days Of Significant Production Growth Are Over For Russia.
February 6, 2006... State intervention in the oil sector has brought the curtain down on the substantial production growth during 2000-04, writes Vladimir Milov, president of Russia's Institute of Energy Policy. Writing exclusively for Energy Intelligence, Milov...

Cold Blast: Winter Freeze Hits Oil Production.
February 6, 2006... Extreme cold weather in Russia this year is hitting oil production with an impact similar to a hurricane on Gulf of Mexico output, says Larry McVay, TNK-BP's chief operating officer. "It is having a very negative impact on output," McVay...

Sales Freeze: Icy Weather Puts The Skids Under Exports.(Brief Article)
February 6, 2006... Russian crude exports through the Transneft system fell sharply in January, as major disruptions in both the north and south impacted liftings from Russia's ports. January exports dropped by 254,000 b/d in January from the month before to...

Trading Places: Sibneft Adds Vice President From Slavneft.
February 6, 2006... Gazprom-controlled Sibneft has appointed Reval Mukhametzyanov as its new vice president for production as it looks to expand operations. Mukhametzyanov, who moved to Slavneft three years ago when half of the company was bought by Sibneft,...

Green Shadow: Putin Backs East Siberian Line Despite Green Fears.
February 6, 2006... President Vladimir Putin is urging the construction of the East Siberian pipeline despite the refusal of state ecological experts to give their approval to the scheme. According to insiders, Putin has instructed the Russian Industry and...

Spanish Reign: Repsol Buys Into West Siberia.(Brief Article)
February 6, 2006... Spanish major Repsol YPF is purchasing a 10% stake in Stockholm-listed independent West Siberian Resources (WSR) for around $90 million under a strategic deal giving access to a raft of Russian upstream assets. WSR's main assets are four...

Time Out: Russia Asks For Time In Yukos US Suit.
February 6, 2006... Lawyers for the Russian government have agreed with a US federal court that all their clients together will be given 60 days to reply to a suit filed by Yukos minority shareholders, upon the receipt of the claim. The claim is currently on its...

Creation: Ukraine Sets Up Russian Gas Supply Venture.
February 6, 2006... Ukraine's state oil and gas company Naftogas Ukrainy and RosUkrEnergo (RUE) last week signed an agreement to set up a joint venture to handle Ukrainian gas supplies. "All documents for the Russian-Ukrainian venture to launch sales of...

Turkish Hub: Gazprom Mulls New Transit Hub.
February 6, 2006... Even as it struggles to keep full gas volumes flowing to Europe amid an extended bout of unusually cold weather inside Russia, Gazprom is pushing full speed ahead in its drive to line up new and expanded export routes and gain tighter control...

Greener: TNK-BP Moves From Brownfield To Greenfield.
February 6, 2006... TNK-BP is evolving from a "brownfield" operator to a "greenfield" developer, mostly in West Siberia, one of Russia's more mature producing regions, says Larry McVay, chief operating officer of the Russian UK joint venture. "We see this as...

Deal-Maker: TNK-BP Ready To Cede Kovykta Control To Gazprom.
February 6, 2006... Russia-UK joint venture TNK-BP has made another attempt to reach agreement with gas monopoly Gazprom that would advance the development of the huge Kovykta gas and condensate field in East Siberia. The oil major has reportedly proposed...

Mercury Fall: Gas Flows To Italy Drop Again.
February 6, 2006... Gazprom's exports to Italy are being reduced again this week, as severe cold once more grips Moscow and other Russian cities. Eni forecast that in the 24-hour period to 6 a.m. Italian time on Feb. 9 that 13.5% of its requested 74 MMcm...

Union Block: UK Urged To Block Gazprom Bid.
February 6, 2006... GMB, the UK's main labor union for energy utility workers, has called on the UK government to warn Gazprom off bidding for UK utility Centrica. Acting General Secretary Paul Kenny said: "The government has powers under the 2003 Enterprise...

Russian Crude Exports To Non-CIS Markets, January 2006.
February 6, 2006...  

Slovakia: Yukos Sells Transpetrol Stake To Russneft.
February 6, 2006... Stricken Russian company Yukos has agreed to sell its 49% stake in Slovakian pipeline operator Transpetrol to rapidly growing Russneft in a move that's seen as an attempt by Yukos' shareholders to recoup some of their losses before the company...

Bulgaria: Gazprom Holds Talks Over Gas Sales.
February 6, 2006... Russian gas monopoly Gazprom has proposed increasing gas transit volumes through Bulgaria -- which transports gas for Greece, Turkey and Macedonia -- according to Russian Industry and Energy Minister Viktor Khristenko. Gas cooperation...

Rompetrol Rings The Staff Changes.(Brief Article)
February 6, 2006... The Rompetrol Group, which is embroiled in a legal tussle with the Romanian authorities, has hired Andre Naniche as its new chief operating officer and is expanding its headquarters in Amsterdam (NC Dec.22,p8). Naniche, who has worked for...

JKX Wins Tender For Exploration License.
February 6, 2006... UK-based independent JKX Oil & Gas has secured a 5.5 sq km onshore exploration license. The Chervonoyarske East Block is valid for five years of exploration and test production and was acquired following an open auction held on Dec. 26....

Kazakhstan: Cold Weather Cuts Into Production.(Brief Article)
February 6, 2006... The coldest weather for decades has hit oil production in Kazakhstan. According to official figures, crude oil and condensate production in January fell by 7.4% from the previous month to 1.18 million b/d. In Russia, production fell by...

Breathing Space: Share Markets Pause For Breath.
February 6, 2006... Share prices of oil and gas majors listed on Russian stock exchanges started to cool over the past week after bullish liquidity worldwide and news of increased access to Gazprom led growth through the New Year into 2006. The pause in...

Kazmunaigas Raises Loan For Kashagan Purchase.(Brief Article)
February 6, 2006... Kazakh state oil company Kazmunaigas has secured an $800 million, 18-month bridging loan at 0.5% above Libor from a consortium of BNP Paribas, Societe Generale and Citibank. Kazmunaigas, which will use the money to finance last year's...

Sneak Preview: BP Announces Gains From TNK-BP.
February 6, 2006... BP has announced it will receive $2.61 billion in profits from its half share of TNK-BP, up from $1.6 billion in 2004. The numbers, announced at BP this week in its 2005 results, provide a good indication of TNK-BP's financials leading up to a...

Equities and Currencies.
February 6, 2006... Share Prices Closing On February 7, 2006

Crude Oil: Crashing Crude Saves Margins.
February 6, 2006... A thunderous sell-off in Brent crude oil futures that sent the March contract crashing $6.52, or almost 10% during the past week, from a Feb. 1 high of $67.27 to a Feb. 8 low of $60.75 was regarded as a temporary, technical correction rather...

Products: Cold Keeps Demand Decent.(Brief Article)
February 6, 2006... The market for Russian gas oil softened this week, as futures sank on the back of plentiful stockpiles in the US and expectations of the end of winter liftings. With unusually cold weather still afflicting parts of Europe, immediate demand...

Fever Pitch: Bidding Comes To The Boil Over Mazeikiu Nafta Sale.
February 13, 2006... The intrigue surrounding the sale of the 53.7% stake in Lithuanian oil company Mazeikiu Nafta (MN) held by stricken Russian company Yukos is reaching fever pitch. Russia has refused to allocate capacity in its national pipeline system for...

Looney Tunes: J&S Rides Out The Storm In Poland.
February 13, 2006... J&S, the trading group that accounts for over 50% of Poland's crude oil imports and 30% of its oil product imports, says it has nothing to fear after dozens of Polish security officials entered its offices in Warsaw last week and seized piles...

American Dream: Gazprom Sets Its Sights On LNG Market.
February 13, 2006... Gazprom has lofty ambitions in the global LNG sector, with the supply-short, demand-long North American market a key component in its plan, said John Hattenberger, who heads the company's North American development and marketing efforts. ...

Spud Lucky: Rosneft Strikes Gas Condensate In Algeria.
February 13, 2006... Russian state oil concern Rosneft and pipeline contractor Stroitransgas are making steady progress in their 50-50 joint venture in Algeria. The state producer announced that it has completed drilling the third well on Block 245-South in...

Big Time: Petrovit Makes Its Mark.(reports on cargo handling, major palyers)
February 13, 2006... Little-known trader Petrovit has expanded its presence as an offtaker of Russian crude, lifting several cargoes from Novorossiysk on the Black Sea and Primorsk on the Baltic during the final three months of last year. Recently registered...

Piping Hot: Transneft Steps Up Pipeline Projects.
February 13, 2006... Russia's national pipeline operator Transneft has resumed work on a planned oil pipeline in northern Russia that would allow long-haul deliveries to the US market, after oil producers committed crude oil to support the project. However, the...

Alarm Bell: Sibneft Warns Of Falling Production.
February 13, 2006... Sibneft president Alexander Ryazanov has warned that profits and production are expected to fall in 2006. The company's new owner, Gazprom, says it main goal is to remedy Sibneft's production decline. Sibneft's total production for 2006,...

Half Track: Rosneft Says IPO On Track For Second Half.
February 13, 2006... Rosneft remains on track with preparations for its initial public offering (IPO), which will take pace in the second half of this year, the president of the state-owned company, Sergei Bogdanchikov, said in London this week. Rosneft aims...

Summertime: Moscow May Agree To Second Sakhalin LNG Plant.
February 13, 2006... The Russian government will not object to the construction of one more LNG plant on Sakhalin Island, if Exxon Mobil decides to go for such an escape route for its gas output from the Sakhalin-1 project, according to Sergei Oganesyan, head of...

Big Appetite: Lukoil Eyes Overseas Acquisitions.
February 13, 2006... Lukoil is planning major acquisitions in European and US markets, the company's president Vagit Alekperov said this week. He was quoted as saying at a meeting with President Vladimir Putin that Lukoil was ready for a number of major asset...

Field Sport: Russneft Acquires New Field Near St. Petersburg.
February 13, 2006... Independent producer Russneft is pushing ahead with ambitious plans to expand its resource base. The company's subsidiary, Udmurt National Oil Co., has reportedly won an auction for the Zolotarevskoye oil field in the Kirov region near St....

Block Bookings: Rosneft Wins East Siberian Acreage.
February 13, 2006... Rosneft has won exploration and development rights to three blocks in the East Siberian Krasnoyarsk region, close to the state producer's massive Vankorskoye field. In all, Rosneft paid $190 million for the licenses to the Tukolansky,...

Well Done: Halliburton Signs Contract With Shell Venture.
February 13, 2006... Salym Petroleum Development (SPD), a joint venture of Royal Dutch Shell and UK-registered Sibir Energy, has signed a major contract with US Halliburton for drilling services. Halliburton will provide directional drilling support,...

Latin Mover: Gazprom Moots Gas Pipe With Venezuela.
February 13, 2006... Russian gas giant Gazprom has held talks with Petroleos de Venezuela (PDV) and the Venezuelan energy minister about possible collaboration in the construction of a major gas pipeline through South America. Stanislav Tsygankov, head of...

Kazakhstan: Gas Production Falls Victim To The Cold.
February 13, 2006... Severe cold weather hit gas Kazakhstan's natural gas production in January, in much the same way that it impacted crude oil and condensate output (NC Feb.9,p11). Total production fell by 14% in January to 1.73 Bcm compared with the...

Azerbaijan: Banks Warned About Risks To BTC Pipeline.
February 13, 2006... Environmentalist groups have written to the 15 major banks that financed the Baku-Tbilisi-Ceyhan (BTC) oil pipeline warning them that they could face court action if the pipeline leaks. The banks, including Royal Bank of Scotland and ABN...

Turkmenistan: Turkmenbashi Warns Of Gas Price Hike.
February 13, 2006... Turkmenistan plans to raise prices for its natural gas exports to $100/Mcm, starting in the third quarter of 2006, Turkmen President Saparmurat Niyazov was quoted as saying this week. The president cited higher global oil-linked natural gas...

Macedonia: Lukoil Lays Foundation For Retail Network.
February 13, 2006... In an expansion drive Russia's Lukoil has started building its first filling station in the former Yugoslav republic of Macedonia, according to media reports. Lukoil plans to invest $50 million in Macedonia's retail gasoline market,...

Hungary: Gazprom Eyes Expansion Opportunities.
February 13, 2006... Russian gas giant Gazprom is looking at new opportunities in Hungary, the biggest importer of Russian natural gas in Eastern Europe. The Russian company plans to participate in the construction of new gas transportation capacity in Hungary,...

Hungary: Mol Posts Gains For 2005.(Hungarian oil and gas company Mol reports its profits)(Brief Article)
February 13, 2006... Hungarian oil and gas champion Mol announced an increase in net profits to over $1.22 billion (245.4 billion forints) for the year 2005, up 19% from around $1.02 billion in 2004. Operating profits increased by 25% to $1.52 billion, due to high...

Riding High: Rosneft Earnings Rise With Yugansk On Board.
February 13, 2006... State-owned Rosneft increased its net profit for the first nine months of 2005 to more than $3.7 billion compared with $620 million in the same 2004 period. The astounding jump in profits, calculated to US GAAP accounting standards though...

Turkmen Payback: Dragon Clears EBRD Loan Early.(European Bank for Reconstruction and Development )(Brief Article)
February 13, 2006... Irish-registered Dragon Oil said it is ready to push ahead with the development of its Cheleken Block in the Caspian Sea offshore Turkmenistan, after repaying a loan for the project to the European Bank for Reconstruction and Development...

Equities and Currencies.
February 13, 2006... Share Prices Closing On February 14, 2006

Crude Oil: Urals Holds Firm In The Med, Softens In Rotterdam.
February 13, 2006... Brent crude oil futures continued to skid lower, adding $1.95 to last week's losses, taking this month's crash to $8.47/bbl, down 12.6%, with the complex led downwards by even bigger losses in US gasoline futures. A very bearish US inventory...

Products: Gas Oil Premiums Return To Pedestrian Levels.
February 13, 2006... The market for Russian gas oil steadied this week, correcting from a steady slide over the previous one, while premiums over futures prices returned to much more pedestrian levels. Severe winter cold and tough Black Sea shipping conditions had...

Russian Roulette: Rosneft Shows Its Hand In Lithuanian Contest.
February 28, 2006... After months of feigning indifference, Russian state oil producer Rosneft may finally be entering the contest for Lithuania's prized Mazeikiu Nafta (MN), which combines the only refinery in the Baltic states with the oil port of Butinge. ...

Spanish Armada: Repsol Turns To Russia, Despite The Risks.
February 28, 2006... After another miserable year of reserve replacement, Spanish major Repsol YPF is turning to Russia, despite the risks it sees in exposing itself to another region fraught with political and fiscal uncertainties. "We have to be very...

Deep Freeze: Winter Freeze Slows Crude Exports, Refining.
February 28, 2006... January's Arctic blast cut sharply into Russian crude production for the month, leading to slimmer volumes for both crude exports and domestic refining (see tables). Crude and condensate production fell to 9.440 million b/d (39.925 million...

Seeing Green: Greenpeace Objects To Transneft Loan.
February 28, 2006... Pipeline monopoly Transneft has asked creditors for a massive unsecured loan to finance its planned East Siberian pipeline, even as environmental activists step up attacks on the line's proposed route. Transneft has approached several...

Upgrade: Yukos Pumps Cash Into Angarsk Refinery.
February 28, 2006... The Angarsk refinery, which is operated by stricken Russian major Yukos, has announced plans to almost double investments in its modernization program this year to improve the quality of its oil products. The company said it will allocate...

Gas Explosion: Rosneft Aims To Get Big In Gas.
February 28, 2006... State-owned oil concern Rosneft plans to monetize its gas reserves, which are currently seriously underestimated due to its lack of access to Gazprom's unified gas supply system. A gas delivery agreement with Gazprom is planned to be...

Hot Money: Battle Heats Up Over Udmurtneft.
February 28, 2006... The fight for TNK-BP's Udmurtneft, which produces 120,000 b/d of crude in the Russian republic of Udmurtia, is going to be tough. With about 10 contenders lining up, including Russian and foreign bidders, the price of the company has...

Asian Flavor: Rosneft Looks To Japan For Standby Loan.
February 28, 2006... Rosneft confirmed this week that it is considering a standby loan, which is one of the conditions of a $7.5 billion credit that its holding company Rosneftegas borrowed last year to finance the government's purchase of a 10.7% stake in Gazprom....

In Reserve: TNK-BP Replaces 137% Of Reserves.
February 28, 2006... Russian-UK joint venture TNK-BP says that as of Dec. 31, 2005 it had replaced over 137% of its 2005 reserves, according to an audit conducted to the standards of the US Securities and Exchange Commission (SEC) (NC Apr.28p3). The...

Capital Case: Yukos Arm Faces Luxembourg Probe.
February 28, 2006... Russian law enforcement authorities have begun an investigation of Yukos Capital, the Luxembourg affiliate of stricken major Yukos, the oil company reported. The investigation comes less than a month after the same affiliate filed a $450...

Crystal Ball: Gazprom Sets Out Growth Targets To 2020.
February 28, 2006... Gazprom's executive board is expected in May to submit a program on production, transportation and supply of natural gas through 2020 to the company's board of directors, the gas giant said in a statement. According to the document,...

Q4 Crude Deliveries To Russian Refineries*.
February 28, 2006...  

Q4 Crude Deliveries To Kazak Refineries From Russian Producers.
February 28, 2006...  

Q4 Crude Deliveries To Ukranian Refineries From Russian Producers.
February 28, 2006...  

Kazakhstan: Rosneft Outlines Expansion Plans.
February 28, 2006... Russian oil companies are aiming to expand in Kazakhstan, as the Kremlin keeps a watchful eye on Chinese inroads in the former Soviet republic. Rosneft said it plans to buy more upstream assets in Kazakhstan, viewing the neighboring...

Azerbaijan: Russia Fails To Get Answers Over Oil Transport.(Brief Article)
February 28, 2006... Russian Energy Minister Viktor Khristenko sought to secure a long-term oil transportation agreement for Azeri export volumes through the Black Sea port of Novorossiysk during a visit he made to Baku last week with President Vladimir Putin (NC...

Poland: PKN Orlen Sees Q4 Profits Drop Against 2004.
February 28, 2006... Poland's largest oil refiner PKN Orlen's fourth-quarter net profits dropped 52.4% against the same quarter in 2004 to 340 million zloty ($107.1 million) based on restructuring and a decrease in refining and petrochemical margins. Lower...

On The Up: Russian Shares Hit Record High.
February 28, 2006... The RTS, Russia's main stock market, hit a record 1,516 on Feb. 26 -- that Sunday was a workday in Russia -- fueled by domestic energy equities. Analysts said that local trading had overshot in its bid to catch up with foreign-listed shares in...

Equities and Currencies.
February 28, 2006... Share Prices Closing On February 28, 2006

Crude Oil: Futures Seesaw Over Saudi Bombing Attempt.
February 28, 2006... Brent crude oil futures took another dive below $60 early in the reporting period, following bearish US inventory reports on Feb. 23, but then screeched up almost $3 on reports of a terrorist suicide bombing attempt against Saudi Arabia's giant...

Products: Gas Oil Slips Sideways.(Brief Article)
February 28, 2006... The market for Russian gas oil slid sideways this week amid uninspiring demand and the return of difficult shipping conditions in Europe. Futures prices rebounded slightly over the course of the week on expectations of dropping US product...