NEFTE Compass articles from July 2006

NEFTE Compass archives from July 2006

Seismic Shift: Gazprom Unlocks New Reserves With Rosneft Deal.
July 5, 2006... In a major shift in Russia's gas policy, state oil company Rosneft and gas giant Gazprom have announced that they are close to a deal on the use of Rosneft's considerable gas resources, indicating a strategic move towards developing Russian gas...

Uphill Struggle: Kashagan Delay, Dry Wells Pose New Challenge For Kazakhstan.
July 5, 2006... As delays plague the giant Kashagan project and after a succession of dry wells in the North Caspian, Kazakhstan faces a struggle to achieve its target of more than doubling oil production to 3 million barrels per day over the next 10 years....

High Roller: Gazprom Shuffles LNG Projects Portfolio.
July 5, 2006... Gazprom is continuing to shuffle schemes within its ambitious portfolio of projects in an attempt to get into liquefied natural gas (LNG) further and faster. The latest example is talks that Alexander Medvedev, Gazprom deputy chief...

Arm Twister: Rosneft Taps Oil Majors For IPO Support.
July 5, 2006... State-owned Rosneft has turned to oil firms across the world with offers of help in working in Russia in exchange for a bit of support in the Russian company's giant initial public offering (IPO), which is slated for finalization next week. ...

Taxing Time: Government Hikes Crude Tariff As Exports Dip.
July 5, 2006... Russia's burdensome crude export tariffs are poised to cross the $200/ton mark to set hit a new record high in August. Russia plans to increase its take from crude exports to $216.40/ton in August-September, up from the previous high of...

Up Quota: Russneft Seeks Bigger Exports Via Bryansk.
July 5, 2006... Russian independent Russneft is trying to use its muscle to increase exports from its terminal in the Bryansk region that was launched a year ago. Only one-quarter of the terminal's 100,000 b/d transshipment capacity is being used, as Russneft...

On The Beach: Rosneft Buys Pacific Oil Terminal.
July 5, 2006... Rosneft has purchased the Nakhodka oil terminal on Russia's Pacific Coast, further boosting the state oil firm's dominant position in the country's lightly developed Far East. Rosneft, which already had been operating the Pacific outlet,...

Output Up: Crude Production Continues To Grow.
July 5, 2006... Russian crude production reached 9.69 million b/d (39.65 million metric tons) in June, up 2.9% year-on-year, according to preliminary data from the Industry and Energy Ministry. Output in the first six months of the year averaged 9.56...

Indian Summer: Itera Ties Up With Gazprom, India's Sun.
July 5, 2006... Florida-registered Russian gas independent Itera's future strategy has begun to take shape after it made a deal with Russian gas giant Gazprom over a disputed asset and agreed to sell a blocking stake in itself to India's Sun Group, with whom...

Far Out: Gazprom Signs Long-Term German Gas Deal.
July 5, 2006... A major Russian gas supply deal to end-2030 has been signed with German distributor Verbundnetz Gas (VNG), but it does not finalize annual volumes or say if the subsea North European Gas Pipeline, planned for completion in 2010, will be used....

Daniella Structure Disappoints Victoria.(production management)(Brief article)
July 5, 2006... UK-based Victoria Oil and Gas announced that it has suspended work at the Daniella deposit at its West Medvezhye field after drilling produced non-commercial test results. The London AIM-listed company had last month increased "best estimate...

Ukraine: Stopgap Gazprom Deal Stalls Price Hike Fears.
July 5, 2006... Russian behemoth Gazprom and the outgoing Ukrainian government have reached a deal to keep the price that Ukraine pays for natural gas locked in until October, allaying fears that Jul. 1 would witness another crisis like the one at the start of...

Uzbekistan: Lukoil Makes A Start On Gas PSA.(petroleum services)(Brief article)
July 5, 2006... Lukoil Overseas, the foreign operating arm of Russian giant Lukoil, has started drilling a program of development wells on the Dengizkul gas field in southwestern Uzbekistan. The field falls within the Kandym-Khauzak-Shady-Kungrad area that...

Azerbaijan: Addax Wins Socar Tender.
July 5, 2006... Swiss trader Addax Petroleum won the latest tender from Azeri state Socar for a 600,000 bbl cargo of Azeri Light crude, according to the Azeri company. The "profit oil" cargo from the BP-led offshore Azeri, Chirag and Guneshli field...

Armenia: Gazprom Eyes Iran Gas Pipeline.
July 5, 2006... Russia's Gazprom is eying the acquisition of a gas pipeline, which would supply Iranian gas to Armenia, Russia's only ally in the Caucasus. According to Gazprom Deputy Chief Executive Alexander Ryazanov, the Russian gas monopoly will...

Moldova: Gazprom Inks Gas Supply Deal At Higher Price.
July 5, 2006... Russian gas monopoly Gazprom has gained a new victory in its campaign to hike natural gas prices for neighbors towards international levels, after signing a new gas supply contract with Moldova. Moldova has agreed to buy Russian gas at...

Holding On: Gazprom To Keep Gazprombank Shares.
July 5, 2006... Gazprom will not sell a new share issue in its financial arm Gazprombank to Germany's Dresdner Bank, indicating potential trouble for a planned 2007 Gazprombank initial public offering (IPO) and a possible change in Dresdner's focus. The...

Downturn: Gazprom Neft Profits, Reserves Upset Investors.
July 5, 2006... New Gazprom subsidiary Gazprom Neft, formerly Sibneft, disappointed investors this week with a below-expectations net profit and a sharp fall in the company's proved crude reserves. Gazprom Neft announced that its net profit rose to $2.80...

Equities and Currencies.
July 5, 2006... Share Prices Closing On Jul. 4, 2006

Crude Oil: Stronger Futures Pressure Margins.
July 5, 2006... August Brent crude oil futures calmed down a little during the reporting period because of an extended US public holiday that closed Nymex for Jul. 3-4 and delayed the publication of the weekly US inventory reports that often move markets. The...

Products: Gas Oil Futures Dip In Holiday Calm.
July 5, 2006... Gas oil futures in Northwest Europe fell for the second day in a row on Jul. 5 after surging late last week along with crude oil prices ahead of the extended US Jul. 4 holiday, traditionally one of the year's great motoring weeks. Sellers...

Outcast: Russia Weighs Cutting Out Exports Via Ukraine.
July 11, 2006... The deepening political crisis in Ukraine is giving a new thrust to Russia's efforts to cut troublesome transit countries out of the loop when it comes to its vital oil and gas exports. A proposal to expand Russia's flagship oil port of...

Upper Class: Russia Comes Of Age As Energy Superpower.(market share)
July 11, 2006... Russia's emergence as a new oil superpower will be in the spotlight at the G8 summit in St. Petersburg this weekend, as the leaders of the world's top economies gather to debate the hot topic of global energy security. Doubtless Iran and...

Summer Sale: Sakhalin Oil To Displace Mideast Volumes In Asia.
July 11, 2006... Exports of a new brand of crude oil -- called "Sokol" -- will kick off at the end of summer from the Sakhalin-1 project operated by an Exxon Mobil-led consortium on Russia's Pacific shelf. Long-awaited in Asian markets, a large portion of...

Higher Authority: Gazprom Gets Northgas Going.
July 11, 2006... Russian natural gas producer Northgas, which is controlled by gas giant Gazprom, expects gas output to reach 3.9 Bcm in 2006, a 22.8% increase on the year. According to the company's forecast, its gas condensate production will rise by...

On Target: Rosneft IPO Looks Set For Success.
July 11, 2006... Rosneft's initial public offering (IPO) appears set to give the Russian state's consolidation of power over the energy industry an important international stamp of approval, just in time for the G8 summit in St. Petersburg. Sources close...

Fast Track: Oil And Gas Legislation Races Through.
July 11, 2006... Two pieces of strategic Russian legislation -- one crucial to the development of oil production and the other to gas exports -- have moved closer to becoming law. The Russian State Duma, or lower house of parliament, passed a second...

Taxman: Back Tax Claims Mount Up For TNK-BP.
July 11, 2006... The Russian government may ask for close to $2 billion in back taxes from Russian-UK joint venture TNK-BP, according to preliminary tax audits. The numbers do not come as a surprise as the company has earmarked 35 billion rubles ($1.3...

Open To Offers: Lukoil Bids For Colombian Acreage.
July 11, 2006... Lukoil is among nine international oil companies, including BP and Total, that have submitted bids to take part in the exploration and development of Colombia's Niscota area. Repsol YPF, Argentina's Pluspetrol, France's Perenco, Colombia's...

Higher Stakes: Conoco Raises Holding In Lukoil.
July 11, 2006... ConocoPhillips' stake in Russian major Lukoil reached 18% in the second quarter, the US company reported last week. Conoco is on schedule to own a 20% stake in Lukoil by the end of the year. The two companies are working on a downstream...

Shipping Team: Russia's Sovcomflot Teams Up With Chevron.
July 11, 2006... Russia's largest shipping company, state-owned Sovcomflot, is teaming up with US Chevron Shipping Co. to arrange crude oil transportation from Russian ports. According to Sovcomflot, a deal signed this week will cover shipments via several...

Kazakhstan: Gas Output Falls On Tengiz Turnaround.
July 11, 2006... Kazakh natural gas production dipped 4.4% in June to 1.837 Bcm compared with the previous month, chiefly because of a big downturn at the giant Tengiz oil and gas field operated by the Chevron-led Tengizchevroil (TCO) joint venture. TCO...

Kazakhstan: Koreans Strike Oil In Aktobe Region.
July 11, 2006... A consortium led by state Korea National Oil Corp. (KNOC) has made an oil discovery at the ADA Block in Aktobe, northwest Kazakhstan. A KNOC spokesman said the find at the first well is estimated to contain 20 million bbl of oil reserves,...

Slovakia: State May Take Transpetrol Back From Yukos.
July 11, 2006... The Slovakian government has expressed interest in regaining total control of oil pipeline operator Transpetrol after earlier withholding approval from a deal in which fallen Russian oil major Yukos was to sell its 49% stake in the company to...

Giant Beancount: Gazprom Posts Strong 2005 Results.
July 11, 2006... Russian gas giant Gazprom reported an audited net profit of 315.9 billion rubles ($11.7 billion) in 2005, up from 211.7 billion rubles ($8.1 billion) in 2004, under International Accounting Standards, according to the company's report. The...

Get Ready: Alliance Group Prepares For IPO.
July 11, 2006... Moscow-based independent Alliance Group, which plans an initial public offering (IPO) in 2007, is aiming to strengthen its position by hiring a former senior executive of French bank BNP Paribas. Raymond Liefooghe will take a chair on the...

Equities and Currencies.
July 11, 2006... Share Prices Closing On Jul. 11, 2006

Crude Oil: Futures Set New Record; Urals Quiet.
July 11, 2006... A failed North Korean intercontinental ballistic missile test on Jul. 4. ignited a record-setting futures rally in London and New York, although nobody knew why a fizzling missile from a non-oil producing state should push Brent to a new...

Products: North Under Pressure, South Sunnier.
July 11, 2006... Middle distillates had an up-and-down week. Gas oil futures hit their highest levels since May late last week, tracking record-high crude oil prices, only to fall back before firming again midweek. IPE July gas oil futures reached...

Diplomatic Leverage: Energy's Role In Russian Armory Grows.
July 19, 2006... Washington's refusal to give the green light to Russia's membership of the World Trade Organization (WTO) -- despite widespread expectations of a breakthrough at the G8 summit in St. Petersburg -- could make Moscow decide to become even more...

Political Capital: Rosneft IPO Bolsters Moscow.
July 19, 2006... Rosneft's record initial public offering (IPO) delivered Russian President Vladimir Putin the type of political mandate for his state-led energy strategy he wanted on the eve of the G8 summit in St. Petersburg last week. But it was hardly a...

Waiting Game: Sakhalin-2 Faces New Check, Wider Scrutiny Mounts.
July 19, 2006... Russia's Natural Resources Ministry is planning a thorough check-up of the Royal Dutch Shell-led Sakhalin-2 development on the Russian Pacific shelf, a move that potentially could further delay approval of the project's budget, which doubled up...

Payback Time: Rosneft To Repay Sakhalin-1 Debt To Indians.
July 19, 2006... Rosneft plans by the end of July to have fully repaid its debt of $1.35 billion to Indian state-owned Oil and Natural Gas Corp. (ONGC), which financed the Russian state major's stake in Sakhalin-1 project on the Russian Pacific shelf. This...

Pressure Pipe: Caspian Pipeline Feels New Heat.
July 19, 2006... Plans to expand the capacity of the Caspian Pipeline Consortium (CPC) have become further complicated, as Russian authorities are claiming the venture owes 6.8 billion rubles ($250 million) in back taxes for 1999-2003, according to sources in...

Refined Tastes: Rosneft Eyes Yukos, Ufa Plants.
July 19, 2006... With its initial public offering (IPO) out of the way, state-controlled Rosneft has turned its attention to expanding its limited refining capacity, possibly through the death of fallen Russian major Yukos. Rosneft Chief Executive Sergei...

Tapped Out: Rosneft Rejects Kazakh Pipe Volumes To China.
July 19, 2006... Rosneft does not plan to use a newly built pipeline from Kazakhstan to send crude to China this year, according to the company's vice president, Dmitry Bogdanov. "It is not profitable for us to supply oil for the price that China receives...

Done Deal: Gazprom Acquires Zarubezhneftegas.
July 19, 2006... Gazprom is set to get full control over its subsidiary for overseas projects, Zarubezhneftegas, as the gas giant's board of directors has approved the sale and purchase deals with Russia's Zarubezhneft and Stroitransgas. Under the deals...

Outward Bound: Lukoil Moves Into West Africa.
July 19, 2006... The international arm of Lukoil has taken a leading stake in an exploration and development project in offshore Cote d'Ivoire, signaling the first entry of a Russian major into West Africa. Lukoil Overseas acquired a 63% stake and control...

Rejection: Moscow Says Nyet To Japan On East Siberain Guarantee.(Brief article)
July 19, 2006... Moscow refused to sign an intergovernmental agreement with Japan to cooperate on the East Siberian pipeline that Russia has begun building to the Pacific coast. "Our position is that this is a purely commercial project and the state should...

Piling On: Court Adds Yuganskneftegas Debt To Yukos Burden.
July 19, 2006... Just as Yukos' creditors are preparing for a meeting regarding their future plans, the Moscow Arbitration Court has admitted a $1.25 billion claim against Yukos brought by its former production unit Yuganskneftegas (NC Jun.8,p1). The...

Summer School: Gazprom Neft Looks To Learn From Imperial Energy.
July 19, 2006... UK-registered Imperial Energy and Russian Gazprom Neft, formerly Sibneft, have announced a memorandum of cooperation designed to exploit synergies in hydrocarbons exploration, production and transportation in their neighboring fields in...

Rosneft And Sinopec Agree On Udmurtneft Management.
July 19, 2006... Rosneft and China's Sinopec have signed an agreement solidifying the Russian state company's control over the management of crude producer Udmurtneft, which was acquired from Russian-UK joint venture TNK-BP last month. Under the accord,...

Japan's Chubu Joins Sakhalin Buyers' List.(Chubu Electric Power Company Inc contracts with Sakhalin Energy)(Brief article)
July 19, 2006... Japan's Chubu Electric has joined the growing ranks of LNG buyers from the Royal Dutch Shell-led Sakhalin-2 venture, signing an agreement for the purchase of 500,000 tons per year of LNG for 15 years from 2011. Construction of the 9.6...

Show Stopper: Ceyhan Prepares For Center Stage.(Baku-Tbilisi-Ceyhan pipeline construction)
July 19, 2006... Consolidating Turkey's position as an energy bridge between East and West, the Mediterranean port of Ceyhan is on course to become a major transshipment hub for crude oil exported from Azerbaijan, Kazakhstan, Russia and Iraq. Turkey is also...

Lithuania: Mazeikiu Turns To Tanker Imports.
July 19, 2006... Lithuanian refiner Mazeikiu Nafta (MN) has been forced to turn to seaborne imports of crude to feed its plant following a 400,000 metric ton cut in pipeline supplies to the country in July. This week, Mazeikiu imported a 100,000 metric ton...

Kazakhstan: Kazmunaigas Buys into KGM.(joint venture between Gaz de France and Kazgermunai)(Brief article)
July 19, 2006... Gaz de France (GdF) said Wednesday it had finalized the sale of its 17.5% stake in Kazakh joint venture Kazgermunai (KGM) to Kazakh national oil company Kazmunaigas for $350 million. It said the deal is part of a larger sale by it,...

Kazakhstan: Russia, Kazakhstan To Sign Karachaganak Deal.
July 19, 2006... Russia's gas giant Gazprom appears to have moved closer to its strategic aim to gain more control over gas and condensate reserves in Central Asia after signing a declaration on long-term cooperation with Kazakhstan. The deal stipulates...

Ukraine: Moscow-Friendly Coalition Moves In As Turmoil Rages.
July 19, 2006... The Ukrainian parliament's so-called "Anti-Crisis" coalition led by Moscow-friendly Viktor Yanukovich formally took shape on Jul. 18, 10 days after the Socialist Party's unexpected desertion sparked political crisis by leaving the seemingly...

Fund Raiser: TNK-BP Plans Major Bond Issue.
July 19, 2006... TNK-BP plans to raise $1.5 billion through the sale of five- and 10-year eurobonds, marking the first time in a while that the Russian-British joint venture has turned to the bond market. The money will be used for general corporate...

Two-Step: Surgut Expects Buyback To Take Two Years.(Brief article)
July 19, 2006... Surgutneftegas' planed buyback of 5% of the company's shares is likely to be completed only in two years time, according to General Director Vladimir Bogdanov. The company has said its share buyback program would go to support an employee...

Equities and Currencies.
July 19, 2006... Share Prices Closing On Jul. 18, 2006

Crude Oil: A Fading War Premium.
July 19, 2006... Near outright war between Israel and the Lebanon-based Islamist Hezbollah movement sent prices rocketing through a $4.91 trading range to yet another all-time record high with front-month Brent futures reaching $78.18 on Jul.17 from a low of...

Products: Prices Ease Back.
July 19, 2006... Middle distillate prices in Northwest Europe and the Mediterranean eased back after a record spike in gas oil futures prices caused by armed conflict between Israel and Lebanon. IPE August gas oil futures hit $675.25/ton during trading on...

Decent Proposal: India Turns To Russia For LNG.
July 26, 2006... India is hoping to use a combination of gas swaps and political persuasion to obtain a long-term supply of liquefied natural gas from Russia. During his visit to the G8 summit in St. Petersburg this month, Indian Prime Minister Manmohan...

Endangered Species: State Predators Wait To Pick Yukos Clean.
July 26, 2006... Two years after President Vladimir Putin declared that the state had no intention of bankrupting Yukos, the Moscow Court of Arbitration will on Aug. 1 almost certainly accept a group of creditors' request to liquidate the former oil giant. And...

Caspian Shipping: Russia Cranks Up Environmental Pressure On Tankers.
July 26, 2006... Russia has cranked up its pressure on shipping in the Caspian Sea, insisting that the sad state of the current Caspian fleet is destined to result in an environmental catastrophe. In recent weeks, Russia's Natural Resources Ministry has...

Pace Maker: Lukoil's Output Jumps On Foreign Fields, Refining Rises.
July 26, 2006... The total hydrocarbons output of Lukoil rose 11.9% to 2.14 million boe/d in the first half of 2006, up from 1.92 million boe/d in the first six months of 2005, helping solidify the company's position as Russia's largest oil firm. Lukoil's...

Pumped Up: Moscow Plots Boost In August Crude Sailings.
July 26, 2006... Following two consecutive months of modest cutbacks, Russia is cranking up the pumps again for August, planning at least a 47,000 b/d rise in seaborne crude exports. State pipeline monopoly Transneft has penciled in seaborne exports at 2.886...

Border Control: Sakhalin-2 Output Hit By Export Snags.
July 26, 2006... The Royal Dutch Shell-led Sakhlin-2 project on the Russian Pacific shelf could lose up to one-third of its planned crude output this year due to a late start-up of summer production and legal problems with exports. Crude shipments to world...

Stubborn: Japan Won't Give Up On Russian Oil.
July 26, 2006... Japan is trying hard to get a piece of the Russian oil pie by encouraging its exploration and production companies to participate in the development of East Siberia's energy riches through higher state subsidies. Tokyo reasons that the...

Cast Away: Schlumberger's Gazprom Neft Contracts In Doubt.
July 26, 2006... Gas giant Gazprom's takeover of Sibneft -- now called Gazprom Neft -- may result in Schlumberger losing some of its Gazprom Neft business to Russian service companies. Gazprom Neft has made no public statements regarding Schlumberger's...

Belarus: Gazprom Moves Closer To Control Of Gas Transit.
July 26, 2006... Russia's Gazprom is pushing ahead with efforts to get control of Belarus' gas transportation system, which handles about 20% of the gas giant's transit gas to Europe. Gazprom and state-controlled gas distributor Beltransgas signed a...

Closing Shop: Stroitransgas Exits Sudan, Turns To East Siberia.(Facility closures of Stroitransgas)(Brief article)
July 26, 2006... Russia's biggest pipeline contractor, Stroitransgas, has announced plans to close down its subsidiary in Sudan and shut a representative office in Ukraine. According to a company official, the board of directors has decided to close its...

Softer Stance: TNK-BP To Keep Kovykta License.
July 26, 2006... TNK-BP has reason to give a sigh of relief, as the threat of losing its license for the giant Kovykta gas field in East Siberia appears to be subsiding. Sergei Fyodorov, head of the state policy and subsoil usage regulation department of...

Kazakhstan: CNPC Completes PKZ Stake Transfer.
July 26, 2006... Crude oil processing at Kazakhstan's three refineries dropped by almost 5% in June to 239,300 b/d compared with the previous month, chiefly because of a downturn at the PetroKazakhstan Oil Products refinery at Shymkent. Compared with the...

Azerbaijan: BP Reaches Record Production Milestone At ACG.(Azeri-Chirag-Guneshli)
July 26, 2006... The BP-led Azeri-Chirag-Guneshli (ACG) development hit a milestone on Jun. 12 of a new record daily production rate of over 500,000 b/d, David Woodward, BP Azerbaijan president, said in a media briefing at the end of last week. "This is a...

Latvia: Kazakhstan Confirms Interest In Ventspils Nafta.
July 26, 2006... Kazakh President Nursultan Nazarbayev confirmed during his visit to Riga last week that his country would like to acquire Latvian transshipment company Ventspils Nafta (VN), which owns the biggest oil terminal in the Baltic states. "Not...

Ukraine: Kiev Clears The Way For Odessa-Brody Pipeline.
July 26, 2006... Ukrainian pipeline monopoly Ukrtransnafta has repaid a $108 million loan for the Odessa-Brody pipeline, opening the door for the line to begin operating in its intended direction, taking Caspian crude from the Black Sea north to Poland. ...

Turkmenistan: Ashkhabad Suspends Gas Exports To Russia.
July 26, 2006... Turkmenistan, the biggest producer and exporter of Central Asian gas, suspended gas supplies to Russia for eight days starting Jul. 25, under a bilateral agreement with Gazprom that allows for maintenance on the key transit line, the Central...

Serbia: Oil Privatization Plan Could Disappoint Lukoil.
July 26, 2006... The Serbian government plans to sell to a strategic investor a maximum 49% in the country's oil monopoly Naftna Industrija Srbije (NIS) in two stages within three years, under a privatization plan approved last week. Lukoil, one of the...

Crunch Time: Tax Woes Deepen For Caspian Pipeline.
July 26, 2006... The woes of the Caspian Pipeline Consortium (CPC) appear to be mounting, as Russia's tax police reportedly have frozen the accounts of the pipeline, which sends Kazakh oil to the Black Sea. Russia's Federal Tax Service reportedly froze the...

Grand Design: Rosneftegas May Survive As Kremlin Tool.
July 26, 2006... Russian state holding company Rosneftegas was supposed to be dissolved after an initial public offering (IPO) of shares in its subsidiary Rosneft raised enough money to repay a $7.5 billion debt to Western creditors. But the holding company...

Equities and Currencies.
July 26, 2006... Share Prices Closing On Jul. 25, 2006

Crude Oil: Global Trouble-Spots Support Prices.
July 26, 2006... Brent futures mooched around between a $72.78 low and a $75.41 high -- a relatively moderate $2.63 range when compared with last week's volatile $4.91. The market remained in thrall to the Israel-Lebanon conflict and the possibility it might...