NEFTE Compass articles from January 2006

NEFTE Compass archives from January 2006

Turmoil: Russian Gas Deal Sparks New Crisis In Ukraine.
January 11, 2006... The Jan. 4 deal between Russian giant Gazprom and Ukraine to resume gas supplies that were cut off for the first three days of the year has plunged Ukraine into a political crisis. Led by former Prime Minister Yulia Timoshenko, Ukraine's...

Release: Caspian Producers Loosen Russian Grip On Exports.
January 11, 2006... President Vladimir Putin was rubbing shoulders with other former Soviet leaders in Kazakhstan this week at the inauguration of President Nursultan Nazarbaev for a new seven-year term in office. But behind the smiles and handshakes, Putin is...

Yuletide Cheer: Gas Oil Exports Surge To Europe.(Brief Article)
January 11, 2006... Russia ramped up gas oil exports in December from the previous month, as slipping prices allowed Russia's largest oil companies to resume shipments to Western Europe. Gas oil exports rose by 787,000 metric tons to 3.094 million tons in...

First Up: Gazprom Enters North Sea Upstream.
January 11, 2006... Gazprom has acquired its first-ever stake in a North Sea block, as a modest but intriguing step in what has become a series of investments in the UK gas market. ZMB, wholly owned by Gazprom's Berlin-based ZGG holding, has taken a 25% share...

Sole Role: Rosneft Rules Out Foreign Partner For Vankor.
January 11, 2006... Rosneft will not need a foreign partner to develop the Vankor acreage in East Siberia that has long been eyed by French major Total. According to Rosneft's first vice president, Nikolai Borisenko, the state-owned company will be able to do...

Chopper: Transneft President Calls For Export Cut.
January 11, 2006... The president of national pipeline operator Transneft, Semyon Vainshtok, believes Russia's crude exports should be reduced by 50%-60%. He said Russia should focus on exporting oil products instead and build refineries and petrochemical...

Edging Up: Crude Exports Creep Upward.
January 11, 2006... Russian crude exports via the Transneft system crept up by 69,000 b/d in December from the month before -- an increase of less than 2% -- as difficult winter shipping took its toll on volumes. December exports totaled 3.993 million b/d...

Going Steady: Oil Production Stays On Modest Growth Path.
January 11, 2006... Russian crude and condensate production rose by 2.8% in 2005 to reach 9.44 million b/d, according to preliminary data from the Ministry of Industry and Energy. TNK-BP was among the production growth leaders last year: Its oil output rose...

Show Me The Money: FSU Firms Give London's AIM A Year To Remember.
January 11, 2006... Companies from the former Soviet Union contributed to the feeding frenzy in share listings in London and other foreign exchanges last year, and a further 20 placements are already on the cards for 2006, including a much-vaunted initial public...

Booked: Petrofac Wins Kovykta Contracts.
January 11, 2006... UK-listed contractor Petrofac has won two three-year contracts worth over $60 million for work at Russia's Kovykta gas and condensate field in East Siberia. The first contract was awarded by Rusia Petroleum and includes project management...

FSU Seaborne Products Exports.
January 11, 2006... FSU Seaborne Products Exports, December 2005

Azerbaijan: Socar Taps Capital Markets For The First Time.
January 11, 2006... Azerbaijan has made its debut in the international capital markets by concluding a $750 million loan to cover its investment commitments to the BP-led development of the Azeri, Chirag, Guneshli fields in the Caspian Sea. The five-year oil...

Kazakhstan: Oil Production Rises By 4% In 2005.
January 11, 2006... Crude oil and condensate production in Kazakhstan rose just over 4% in 2005 to 1.23 million b/d from 1.18 million b/d in 2004. Far and away the biggest producers were Chevron-operated Tengizchevroil, which kept production flat around...

Azerbaijan: Exxon To Pay Compensation For Abandoned Blocks.
January 11, 2006... Exxon Mobil will pay Azerbaijan around $50 million in compensation after giving up exploring two oil fields in the Caspian Sea, an official from Azeri state oil firm Socar said. Exxon was committed to a minimum work program of two wells on...

Azerbaijan: BP Brings West Azeri Field On Stream.
January 11, 2006... BP has kicked off the New Year by bringing on stream oil production from the West Azeri platform, as part of the development of the offshore Azeri, Chirag and Guneshli (ACG) field. Located in 118 meters of water 100 km east of Baku, West...

Serbia: Majors Eye Privatization Of NIS.
January 11, 2006... The privatization of Serbia's oil monopoly NIS is expected to attract bids from Europe's top oil companies later this year and may yield as much as C4 billion ($4.8 billion). Austria's Raiffeisen Investment and US investment bank Merrill...

Turkmenistan: Dragon Brings In New Well.
January 11, 2006... Irish-registered Dragon Oil says that its LAM 10-112 well -- drilled from the refurbished LAM 10 platform in its offshore Cheleken Block -- has produced around 2,950 b/d of oil during tests. The Caspian Sea well was spudded on Oct. 14 and...

Czech Republic: OMV Swoops On Retail Chain.
January 11, 2006... Austria's OMV has completed its acquisition of Aral CR, a Czech fuel retailer with 70 filling stations, following clearance by competition authorities. The deal will make OMV the country's largest retailer, raising the number of its...

Bumper Number: Gazprom Notches Up Record Profits.
January 11, 2006... Gazprom chalked up an almost 10% increase in its net profits for 2005 in ruble terms, setting a record for the last several years. The state-controlled gas giant reported in late December a net profit of over 177 billion rubles ($6.145...

Pipe Up: Profits Jump At Transneft.
January 11, 2006... Russian state pipeline operator Transneft reported in late December that it had made a consolidated net profit of 41.056 billion rubles ($1.45 billion) for the first nine months of 2005, in accounts prepared according to International...

Equities and Currencies.
January 11, 2006... Share Prices Closing On January 10, 2006

Crude Oil: Choppy Seas.
January 11, 2006... Reports that Opec might decide to cut production at its Jan. 31 meeting pushed Brent futures from a Jan. 28 low of $55.70 to an end-of-year close of $58.98. The reports were later dismissed by some ministers, but then Russia on the first...

Products: Drifting Down.(market research of Russian distillate oils )
January 11, 2006... The market for Russian gas oil drifted down this week after strengthening significantly to open the year, following a pickup in activity as traders moved to replenish stocks. End-user demand in Northwest Europe was mixed this week, with...

Makeover: BP May Reduce Its Stake In TNK-BP.
January 18, 2006... Three years after BP decided to invest some $8 billion into Russia by teaming up with Tyumen Oil Co. (TNK) in a deal blessed by Russian President Vladimir Putin and UK Prime Minister Tony Blair, the UK major could be looking to reduce its 50%...

Honeypot: Bidders Buzz Around New Prize In Kazakhstan.
January 18, 2006... Bidders are starting to buzz around Nations Energy, a privately owned Canadian-based oil and gas producer that operates in Kazakhstan and Azerbaijan, which is seeking offers in excess of US$2 billion. Bidders from China and India are...

Master Plan: Japanese Focus On Kovykta Supplies.
January 18, 2006... Japan's Toyo Engineering Corp. and Itochu Corp. have signed a deal with the East Siberian Gas Co. (ESGC) to prepare a master plan for the gasification of the Irkutsk region in East Siberia. The plan will be financed by the Japan External...

Low Blow: Yukos Hit With Massive New Tax Bill.
January 18, 2006... Beleaguered Russian major Yukos has received a new tax bill for 107 billion rubles ($3.73 billion) for 2004, crushing the company's hopes of surviving Moscow's massive assault. Yukos received the bill on Dec. 27, raising the total the...

Small Dent: Crude Exports Dip In 2005.
January 18, 2006... Russia exported 5.04 million b/d (251 million metric tons) of crude to world markets in 2005, down from 5.08 million b/d (254 million tons) in 2004, Sergei Oganesyan, head of Russia's Energy Agency, said. He said that this year Russian...

Cold Snap: Gazprom Freezes Gas Supplies.
January 18, 2006... Gazprom has reduced gas export flows to Western Europe by 10%-20%, because of extreme cold in Russia's major cities. Western European companies stressed the difference between this week's circumstances, and the disruption to Russian...

New Recruit: Amerada Hess Adds Another String To Its Bow.
January 18, 2006... US oil company Amerada Hess has made another step towards its target of increasing its crude production in Russia. Hess' subsidiary in Russia, Samara-Nafta, has bought the 4,300 b/d producer Volganeft, which operates in the same region. ...

Payback: Glencore Gets More Assets From Russneft.
January 18, 2006... One of the world's leading trading companies, Glencore International, has increased its presence in the Russian upstream after receiving stakes in another three producers. Stakes of up to 49% in 20,500 b/d White Nights, 9,200 b/d Goloil...

Restricted Zone: Auctions For Major Acreages Could Be Postponed.
January 18, 2006... The auction for the two major oil acreages in the northern Timan-Pechora oil province, Trebs and Titov, could be cancelled again this year, Lukoil's Vice President Leonid Fedun believes, as state-owned companies are not ready to participate in...

Resolutions: Lukoil Sets Goals For 2006.
January 18, 2006... Lukoil's board of directors has set targets for 2006, which include crude production growth of 4% at home and abroad, and a 40% increase in gas output. Lukoil said it produced 1.8 million b/d (90.1 million metric tons) of crude last year,...

Peace Pipe: Germany Hints At Changing Policy Over Baltic Pipe.
January 18, 2006... German Chancellor Angela Merkel has apparently been shifting her party's line on the North European gas pipeline direct from Russia under the Baltic Sea to Germany. She was in Moscow this week for her first meeting since taking office with...

New Face: New Hire Brings Political Clout To Sakhalin-2.
January 18, 2006... Sakhalin Energy, the operating company of the Royal Dutch Shell-led Sakhalin-2 project, has hired a well-connected manager to be in charge of external affairs and government relations. Igor Ignatiev, who has formerly worked with the Russian...

Gas Burner: Gazprom Inks Moldova Deal, Reviews Bulgaria Prices.
January 18, 2006... Having resolved for the time being its gas conflict with Ukraine, Russia's Gazprom is pushing ahead with its campaign to hike gas prices for customers in the former Soviet Union and Central Europe, while revising terms for gas supplies and...

Kazakhstan: Kazakhs Eye Refinery Investment In Georgia.
January 18, 2006... A group of Kazakh investors has proposed financing a new refinery in Georgia to process Kazakh crude, Mukhtar Ablyazov, chairman of Kazakhstan's Bank TuranAlem, was quoted as saying this week. The plan envisages a 100,000 b/d refinery worth...

Kazakhstan: Max Gets Big Acreage Near Russia.(Max Petroleum)(Kazgas)(Brief Article)
January 18, 2006... Max Petroleum, which listed on London's Alternative Investment Market (AIM) last October, has acquired an exploration contract in western Kazakhstan near the border with Russia. The Astrakhansky contract area, which totals 1,273 sq km, lies...

Lithuania: Klaipeda Oil Volumes Fall.(Klaipedos Nafta )(Brief Article)
January 18, 2006... Klaipedos Nafta (KN), the operator of Lithuania's oil export terminal, has seen its volumes fall, due mainly to a decline in product shipments. KN handled 5.844 million metric tons of oil products in 2005, down 10.5% from a year earlier...

Central Europe: OMV Dips Into Transfer Market.
January 18, 2006... Austrian oil and gas company OMV said Tuesday it is transferring its downstream businesses in Romania, Bulgaria, and Serbia and Montenegro to its 51% owned Romanian subsidiary Petrom. "We want to develop Petrom from a leading oil and gas...

Hungary: Germans Agree New Price For Mol Assets.(Brief Article)
January 18, 2006... German utility giant E.On has agreed a revised price of C1.05 billion ($1.27 billion) for its acquisition of the gas trading and storage business of Hungarian Mol. The deal is due to be completed by the end of March. "The total purchase...

Kazakh Refinery Activity, 2005.
January 18, 2006...  

Night Flight: Russia Sees First Net Capital Inflow.(Brief Article)
January 18, 2006... Russia saw a net inflow of capital in 2005, the first inflow since the fall of the Soviet Union, as forgiving investors plunged money into the economy. Net capital inflows to Russia reached roughly $300 million in 2005 on the back of...

Easy Go: Yukos Spends Sibneft Dividend On Taxes.
January 18, 2006... Still struggling to keep its head above water, fallen Russian major Yukos plans to use its entire $417 million dividend from a 20% stake in Sibneft to repay some of its remaining back tax debts. Following the payment, Yukos' remaining tax...

Equities and Currencies.
January 18, 2006... Share Prices Closing On Jan. 17, 2006

Crude Oil: Stronger Futures, Softer Physicals.
January 18, 2006... Growing tension and civil strife in Nigeria, which has led to the shut-in of almost 250,000 b/d of production, plus concerns about a potential confrontation with Iran over its nuclear ambitions, triggered a bull run in futures. March Brent at...

Products: Gas Oil Hits Three-Month High.
January 18, 2006... The market for Russian gas oil strengthened significantly this week as concerns about crude disruptions in Nigeria and the escalating nuclear showdown with Iran sent prices up across the board, with gas oil hitting a three-month high. Low...

Big Chill: Bitter Cold Strikes Russian Energy Supplies.
January 24, 2006... The sharp freeze that has swept through Russia and much of Europe is heating up political tensions across the continent, as faltering energy supplies have led to a flurry of finger-pointing and a new barrage of complaints about Europe's...

Fast Forward: Lukoil Goes For Growth On All Fronts.
January 24, 2006... Russia's largest oil company, Lukoil, just got a whole lot bigger, and company officials believe it could be challenging Exxon Mobil for the world No. 1 spot in two to three years. The cost of its growth is a lot cheaper, too. According to...

Backstepping: Rosneft Reworks Plans For Public Offering.
January 24, 2006... Russia's Rosneft may sell some of its shares on the market before consolidating its subsidiaries, a move that observers have read as evidence that the state oil producer is struggling to gain approval for controversial proposed consolidation...

Too Much: Russia Puts Pressure On Sakhalin Plans.(Brief Article)
January 24, 2006... The Russian government will not accept the sharp increase to $20 billion for the budget of the Royal Dutch Shell-led Sakhalin-2 project, the head of Russia's Energy Agency, Sergei Oganesyan said last week. Oganesyan acknowledged that some...

Blockbuster: Lukoil Spuds Egypt Well.
January 24, 2006... Proving its role as Russia's flagship carrier overseas, Lukoil has spudded a second exploration well at Egypt's offshore North-East Geisum Block in the Gulf of Suez. The well, which will take a month and a half, will be drilled in water...

Slowdown: Crude Production Growth Stuck In Slow Lane.
January 24, 2006... Russian crude and condensate production in 2005 reached 9.44 million b/d (469.99 million metric tons), according to the latest data from Industry and Energy Ministry, a 2.7% increase from 2004 (see p9). The 2005 growth rate was the lowest...

Buying Time: Swedish Independent Snaps Up Russian Producer.(Brief Article)
January 24, 2006... Sweden's West Siberian Resources (WSR) has agreed to purchase 5,700 b/d producer Saneco for $140 million, bringing the rapidly growing independent's presence into another Russian region. Saneco produces in Russia's southern Volga-Urals...

Wallet Wounder: Russian Bailiffs Target Ex-Yukos CEO.(Brief Article)
January 24, 2006... Russia's federal court bailiffs have begun proceedings to collect over $600 million from fallen Yukos Chief Executive Mikhail Khodorkovsky and business partner Platon Lebedev, the former head of majority Yukos shareholder Menatep. The...

For Sale: TNK-BP Mulls Major Asset Sales.
January 24, 2006... UK-Russian venture TNK-BP may be preparing to sell major production units, as it looks to curb its significant upstream presence in Russia. A spokeswoman for TNK-BP confirmed that the venture is "testing the market" for 120,000 b/d producer...

Gut Reaction: Russneft Makes Algerian Inroads.
January 24, 2006... Mikhail Gutseriev, president and owner of fast-growing private oil company Russneft, was elected last week as the cochairman of the Russian-Algerian Business Council, which has been set up to promote joint projects between the two countries....

Cove Point: Gazprom Increases LNG Sales To US.
January 24, 2006... Gazprom is advancing its long-term strategy to become a major supplier of LNG to the US market. Although the gas giant so far has no LNG production of its own, it is set to carry six or more cargoes to the US in 2006, the company's Deputy...

Caspian Pipe: CPC Expansion Could Be Further Delayed.(Caspian Pipeline Consortium )
January 24, 2006... Russia has dashed hopes for a speedy resolution to the long wrangle over the expansion of the Caspian Pipeline Consortium (CPC) oil export route. "We insist on our position to be accepted unconditionally," Sergei Oganesyan, the head of...

Russian Crude Oil And Condensate Production/Exports, 2005.
January 24, 2006...  

Kazakhstan: New Oil Minister Appointed.
January 24, 2006... Kazakhstan's energy and mineral resources minister, Vladimir Shkolnik, has been replaced by his deputy, Baktykozha Izmukhambetov, in a Cabinet reshuffle by President Nursultan Nazarbaev following his recent reelection. Izmukhambetov is a...

Belarus: Lukoil To Set Up Downstream Joint Venture.
January 24, 2006... Russian oil giant Lukoil plans to launch new downstream projects in neighboring Belarus, investing $500 million-$600 million, according to media reports quoting Lukoil President Vagit Alekperov. Lukoil plans to set up a 50-50 joint venture...

Kazakhstan: Gas Growth Held Back By Karachaganak Downtime.(Brief Article)
January 24, 2006... Gas production in Kazakhstan rose by a respectable 27% in 2005 to 25 Bcm compared with the previous year, but the margin would have been much greater if it were not for a prolonged downturn at the biggest field, Karachaganak, which is operated...

Uzbekistan: Gazprom Signs Gas Purchase Deal.
January 24, 2006... In line with Gazprom's strategy to secure more Central Asian gas flows, the Russian gas giant has signed a natural gas transit and purchase agreement with Uzbekistan. Under the accord, Gazprom in 2006 will buy 9 Bcm of gas from Uzbekistan,...

Ukraine: Ministers Sacked Over Russian Gas Deal.
January 24, 2006... Ukraine's parliament, the Rada, has sacked Energy Minister Ivan Plachkov and Justice Minister Sergei Golovaty over a controversial gas agreement with Russia. The Rada dismissed the two officials on the grounds that the agreement with...

Turkmenistan: Turkmenbashi Visits Moscow To Discuss Cooperation.
January 24, 2006... Turkmenistan wants to expand energy cooperation with Russia, Turkmen President Saparmurat Niyazov was quoted as saying during a visit to Moscow this week. Turkmenistan will work with Russia on supplying gas to Asia and Europe within "major...

Key Source: TNK-BP Sets 2006 Budget For East Siberian Field.
January 24, 2006... TNK-BP-led Verkhnechonskneftegas plans to invest $131 million this year in the large Verkhnechonskoye oil and gas condensate field, which is earmarked to be a key source of crude for the government's proposed pipeline from East Siberia to the...

Trading Up: Gazprom Makes Debut On Largest Russian Exchange.
January 24, 2006... The liberalization of Gazprom's share market has passed another crucial test, with the start of trading in the Russian gas behemoth's stock on the Moscow Interbank Currency Exchange (Micex). With Gazprom's inclusion on Micex, the stock now...

Equities and Currencies.
January 24, 2006... Share Prices Closing On Jan. 24, 2006

Crude Oil: Urals Firm In North, Soft In South.
January 24, 2006... Continuing tension between the Western powers and Iran over its nuclear program and escalating violence in Nigeria drove Brent futures to a Jan. 20 high of $67.32 before profit-taking and a technical correction took their toll. A promise from...

Products: Cold Prices Support Differentials.
January 24, 2006... Supply disruptions and concerns about the lash of winter kept Russian gas oil firm this week, with steep differentials holding steady. Cash prices began to slip over the course of the week, however, as expectations of abundant supply of...

Vision: Putin Outlines Russia's Energy Sector Future.
January 31, 2006... President Vladimir Putin gave a sneak preview this week of the roadmap for the Russian oil and gas scene when he said that state-owned Rosneft would follow Gazprom in becoming an international major. He added that private oil companies would...

Trumpet: Rosneft Takes Control Over Russian CPC Exports.
January 31, 2006... Russia's state oil champion Rosneft is expanding its operations by taking control over Russia's crude exports via the Caspian Pipeline Consortium (CPC). The CPC pipeline picks up Russian crude as it runs across Russian territory on its way from...

Processed Out: Products Exports Rise As Crude Sales Fall.
January 31, 2006... Falling crude production and strengthening demand for refined goods cut into Russian crude exports in December, while product exports jumped to close the year (see table). Russian oil and gas companies saw crude production drop to 9.603...

Making Room: Japanese May Reduce Sakhalin Stakes.(Brief Article)
January 31, 2006... Japanese members of the Royal Dutch Shell-led Sakhalin-2 consortium could reduce their shareholdings to make room for Gazprom, which is to join the project by the end of the year. Mitsubishi Chief Financial Officer Ichiro Mizuno was...

Control Freaks: Moscow Mulls Tighter Control Over Investment.
January 31, 2006... Moscow is said to be considering restrictions on foreign strategic investment in Russia's top oil and gas companies, in a move that would be in line with the government's goal of limiting foreign participation in strategic resources. The...

Empty Quarter: Lukoil Spuds First Saudi Well.
January 31, 2006... Pursuing its goal to become No. 1 in the world, Lukoil started exploration drilling in Saudi Arabia on Jan. 25. The well is targeting the Tukhman structure in Area A, south of the Ghawar oil field, in the northern Rub al-Khali (Empty...

Survival: Yukos Emphasizes Need For Cost Control.
January 31, 2006... Yukos has issued its production plan and capital spending budget for 2006, stressing cost control and efficiency in the face of disputed tax claims, and an intention to concentrate on doing business inside Russia. The plan sees exports of...

Marginal: Refineries Increase Throughput, Enjoy High Margins.
January 31, 2006... High international crude prices and Moscow's taxation policy, as well as favorable refining margins inside the country are encouraging Russian oil companies to process more crude at domestic refineries. "The domestic market brings more...

Going Up: Surgutneftegas To Boost Spending.(Brief Article)
January 31, 2006... Surgutneftegas has revealed plans to boost investments in 2006 by 19.4% and to increase crude output by 5%. But it denies that it is in talks about a possible merger with Rosneft. Surgutneftegas plans to invest 69.15 billion rubles ($2.46...

Winter Woes: Weather Keeps Russian Crude Exports Flat.
January 31, 2006... Moscow is again having to adjust its shipping plans around punishing winter weather. Strong waves and freezing temperatures have stalled repairs at the Lithuanian port of Butinge, forcing Moscow to issue its monthly crude export schedules...

Greenpipe: Greenpeace Attacks East Siberian Pipeline.
January 31, 2006... Russia's plan to build an East Siberian pipeline to the Pacific coast for crude sales to Asian markets was attacked this week by Russian and international environmentalists. The route of the pipeline proposed by Russia's national pipeline...

Explosion: Blast Hits Yukos Refinery, Injures Seven.
January 31, 2006... An explosion and fire at Yukos' Novokuibyshev refinery over last weekend left seven workers hospitalized and has forced a modest cutback in processing at the facility. Fire broke out early on Jan. 29 in the atmospheric distillation and...

British Pound: Wingas Seeks UK Gas Storage Permit.(United Kingdom)(Brief Article)
January 31, 2006... German marketer Wingas, which is part-owned by Russian gas giant Gazprom, has applied for planning permission to extend the life of its natural gas field at Saltfleetby in Lincolnshire by converting it to a gas storage facility with an expected...