NEFTE Compass articles from March 2005

NEFTE Compass archives from March 2005

Dream Team: Merger Of Gazprom And Rosneft Gets Back On Track.
March 2, 2005... The mega-merger of Gazprom, the world's largest natural gas producer, with Russian state oil company Rosneft is back on the fast-track after a Houston court last week dismissed Yukos' claim for US bankruptcy protection. The terms of the merger...

Tightrope: Ukraine Treads Fine Line With Russia.
March 2, 2005... Ukraine's new government is treading a fine line in its relations with Moscow, on the one hand working to preserve commercial relations, and on the other to assert its independence. Ukrainian Prime Minister Yulia Tymoshenko signed a...

American Dream: Lukoil May Supply Crude To PDV's Citgo In US.(Petroleos de Venezuela)(Brief Article)
March 2, 2005... Lukoil President Vagit Alekperov will present concrete offers for cooperation projects with state-owned Petroleos de Venezuela (PDV) when he visits Caracas on May 23. Among those projects are plans by Lukoil to supply its crude to PDV's US...

Take A Hike: CPC Shareholders Agree On Tariff Hike.
March 2, 2005... Shareholders of the Caspian Pipeline Consortium (CPC) agreed at a meeting in Astana, Kazakhstan on Mar. 1 to increase the pumping tariff via the line by $2.50 to $29.50 per metric ton, Kazakhstan's Energy and Mineral Resources Minister Vladimir...

French Whine: Chirac Asks Putin To Speed Up Novatek Deal.(Jacques Chirac writes to Vladimir Putin)(Brief Article)
March 2, 2005... Total has enlisted French President Jacques Chirac to support its efforts to push through its delayed purchase of a 25% stake in Russia's largest private gas producer Novatek. Chirac has sent President Vladimir Putin a personal letter asking...

Mad March: Crude Export Duties To Hit Record High.(Brief Article)
March 2, 2005... Russia's crude export duties are set to hit a new record high, with fees rising to $102.60/metric ton starting Apr. 1. The hike would occur after Moscow completes its monitoring of oil prices in January and February. The average Urals price...

Three Musketeers: Three TNK-BP Subsidiaries Approve Restructuring.(Brief Article)
March 2, 2005... TNK-BP's restructuring plans are moving ahead on course. The boards of the joint venture's three main subsidiaries -- Tyumen Oil Co. (TNK), Sidanco and Onaco -- held shareholder meetings this week approving their integration into TNK-BP...

Up The Creek: Primorsk Puts Ventspils Under The Cosh.(ports)(Brief Article)
March 2, 2005... A sea change may be in store for Latvia's Ventspils port, which was once the dominant oil and oil products hub on the Baltic Sea. Russia's port at Primorsk, which has risen out of nowhere over the past couple years, has already sucked away...

Drill Bits: Gazprom Starts Drilling At Yuzhno-Russkoye.(Brief Article)
March 2, 2005... Gazprom has started exploration drilling at the Yuzhno-Russkoye field in West Siberia, which it lists as the main source of gas for its proposed North European Gas Pipeline (NEGP) under the Baltic Sea. To develop the field, Gazprom is...

Here We Go: East Siberian Pipeline Construction To Start This Year.
March 2, 2005... Construction of the East Siberian pipeline to the Pacific coast is to begin this year, according to documents from a Transneft board meeting. The national pipeline operator's board approved completion of the feasibility study for the project by...

Ides of March: Winter Storms Force March Slowdown.
March 2, 2005... Taking into account the realities of winter storms forcing the repeated closure of Black Sea ports, Russia is planning to slash its March seaborne crude exports by 166,000 b/d. Crude exports are set to fall to 2.724 million b/d in the March...

Novorossiysk Crude Loading Program For March 2005.
March 2, 2005... Novorossiysk Crude Loading Program For March 2005

Gdansk Crude Loading Program For March 2005.
March 2, 2005... Gdansk Crude Loading Program For March 2005

Butinge Crude Loading Program For March 2005.
March 2, 2005... Butinge Crude Loading Program For March 2005

Tuapse Crude Loading Program For March 2005.
March 2, 2005... Tuapse Crude Loading Program For March 2005

Yuzhny Crude Loading Program For March 2005.
March 2, 2005... Yuzhny Crude Loading Program For March 2005

Primorsk Crude Loading Program For March 2005.
March 2, 2005... Primorsk Crude Loading Program For March 2005

Odessa Crude Loading Program For March 2005.
March 2, 2005... Odessa Crude Loading Program For March 2005

Azerbaijan: Total Wins Socar Urals Tender.(Total has won tender to lift Socar's second cargo of Urals)(Brief Article)
March 2, 2005... France's Total has won a tender to lift Socar's second cargo of Urals crude loading out of Novorossiysk in March. The 1 million bbl (140,000-ton) cargo is scheduled to load out of the Russian Black Sea port on Mar. 23-24. Azeri state Socar...

Uzbekistan: First PSA Turns Sour.(Uzpec licences withdrawn for inability to oblige production sharing agreement)(Brief Article)
March 2, 2005... The first production sharing agreement signed by the government appears to have gone sour after the withdrawal of licenses from UK-registered Uzpec for rights to develop several oil and gas deposits, according to national holding company...

Kyrgyzstan: Reverse Takeover Creates New Oil Group.(Silvermines Media is taking over Zhibek Resources and changing its name to Cambrian Oil and Gas)(Brief Article)
March 2, 2005... A reverse takeover has created a new group -- Cambrian Oil and Gas -- that aims to step up oil production and exploration in Kyrgyzstan. Under the takeover procedure, Silvermines Media is taking over Zhibek Resources and changing its name...

Kazakhstan: Koreans Poised To Dive Into The Caspian.(South Korean consortium signs agreement with Kazmunaigas)
March 2, 2005... A South Korean consortium led by state-owned Korea National Oil Corp. (KNOC) has made a breakthrough in the northern Caspian Sea by signing a preliminary agreement with Kazakhstan's state oil and gas company Kazmunaigas. The Korean consortium...

Slovakia: After Yukos, Fate Of Transpetrol Hangs In Balance.
March 2, 2005... After Russian President Vladimir Putin's visit to Bratislava last week, the fate of Slovak oil pipeline company Transneft has come into focus. Putin assured a steady supply of Russian oil to Transpetrol, which currently receives the bulk...

Kazakhstan: PetroKazakhstan Claims Big Rise In Reserves.
March 2, 2005... PetroKazakhstan has cast aside concerns that its reserves may be flagging by announcing that it made "a spectacular improvement" in its oil and gas reserve base in 2004 that was confirmed by its independent reserves auditor, McDaniels and...

Rally: Russian Stocks Surge After Yukos Defeat.(Brief Article)
March 2, 2005... The Russian stock market has rallied on a wave of speculative frenzy, after Yukos lost its claim for US bankruptcy protection last week. At 713, Russia's RTS stock exchange is trading at levels not seen since April 2004. Much of the...

Nouveau Riche: Sibneft Taps Austrian Bank For Refinancing.
March 2, 2005... Russia's Sibneft has received a $200 million loan from a consortium of banks led by Austria's Raiffeisenbank. The loan is for 39 months and has an interest rate of Libor plus 1.6%. The money will be used for "standard working capital," a...

Equities and Currencies.
March 2, 2005... Share Prices Closing On March 1, 2005

Crude Oil: Urals Holds Steady In The Med.
March 2, 2005... Russian Urals weakened in northwest Europe but held steady in the Mediterranean. Brent futures remained firm with less volatility than seen in recent weeks. Front month April Brent traded a relatively modest $2.35 range during the seven-day...

Products: Cold Weather Boosts Gas Oil Prices.(Brief Article)
March 2, 2005... It has been a strong week for Russian gas oil differentials, which followed a rise in crude futures and were boosted by continued cold weather in northwest Europe and the eastern Mediterranean. Indeed, gas oil has led the oil products market...

London Calling: Kazakhstan To Seek London Listing For Kazmunaigas Offshoot.
March 9, 2005... As Russia turns the clock back by effectively renationalizing Yukos, Kazakhstan is heading in the opposite direction with plans to privatize part of national oil and gas champion Kazmunaigas. The government aims by the end of 2005 to have...

New Broom: New Ukrainian Team Makes Its Mark In Oil And Gas.
March 9, 2005... The new team in Ukraine -- President Viktor Yushchenko and his sidekick Prime Minister Yulia Tymoshenko -- has launched a campaign to gain control over the oil and gas sector and roll back the country's dependency on Russia. Yuschenko has...

No Laughing Matter: Gazprom-Rosneft Merger Descends Into Farce.
March 9, 2005... Plans to merge Gazprom and Rosneft into a single state-controlled energy giant have descended into farce, with the two companies engaging in a public mudslinging match over the terms of the union. The confusion will be a disappointment for...

Waiting Game: Yukos' Stake in Sibneft Still In Limbo.
March 9, 2005... As the noose continues to tighten around Russia's Yukos, the question remains whether there will be similar crackdowns on other oil companies. For the past year and a half, eyes have been looking particularly hard at Sibneft, another...

Back On Track: Crude Production Rises In February.(Brief Article)
March 9, 2005... Russian crude production in February came in at 9.33 million b/d (35.64 million metric tons), up 5% on the previous year, and up 0.76%, or 70,400 b/d, on the previous month, according to preliminary data from the Ministry of Industry and...

Gas Expansion: Belarus Expands Yamal-Europe Pipeline Capacity.(Brief Article)
March 9, 2005... Russia and Belarus are pushing ahead with plans to raise the capacity of the Yamal-Europe pipeline to Germany via Belarus and Poland. According to an official at state-controlled gas distributor Beltransgas, the pipeline will be capable of...

Flying High: Russia Ramps Up February Crude Exports.(Brief Article)
March 9, 2005... Crude exports via the Transneft soared by 342,000 b/d in February as Russia ramped up shipments to Ukraine's Black Sea ports and Lithuania's Baltic Sea port of Butinge. Export shipments rose to 3.843 million b/d (14.679 million metric tons)...

Comeback Tour: Kasyanov Plans Political Comeback.( Russian Prime Minister Mikhail Kasyanov )(Brief Article)
March 9, 2005... After a year of silence, former Russian Prime Minister Mikhail Kasyanov has announced his intention to get into the consulting business and probably return to politics. Kasyanov said he has set up his own consulting and research firm,...

Crude Exports Bypassing The Transneft Pipeline System, February 2005.
March 9, 2005... Crude Exports Bypassing The Transneft Pipeline System, February 2005

Valid Concept: Canadians Get Going In Eastern Siberia.
March 9, 2005... Work is starting to gather pace on opening up the oil and gas resources of Eastern Siberia. Canada-based SNC-Lavalin has won a $13 million contract from Vankorneft, an affiliate of Russia's state-owned Rosneft, for concept validation and...

Iron Fist: Moscow To Increase Control Over CPC.(Caspian Pipeline Consortium)(Brief Article)
March 9, 2005... In an effort to take a bigger management role in Caspian Pipeline Consortium (CPC), the Russian government is preparing a resolution to transfer the management rights to its 24% stake in CPC to the State Property Agency. Currently, the stake is...

Death And Taxes: Government Debates Oil Tax Regime.(Brief Article)
March 9, 2005... A working group of Russia's Energy Agency is mulling introducing a differentiated hydrocarbon production tax, which would take into account the quality of different producers' reserves. The Russian government could apply several criteria to...

Big Effort: Lukoil Pulls Out The Stops For Libya.(OAO Lukoil)(Brief Article)
March 9, 2005... In an effort to build a substantial presence in the Middle East and North Africa, Lukoil is looking at Libya as another target. According to Lukoil President Vagit Alekperov, the Russian major will participate in all oil and gas tenders in...

Russian Crude Rail Shipments, February 2005.
March 9, 2005... Russian Crude Rail Shipments, February 2005 ('000 metric tons)

Russian Crude Exports To Non-CIS Markets, February 2005.(Brief Article)
March 9, 2005... Russian Crude Exports To Non-CIS Markets, February 2005 Notes: Crude exports via Transneft pipeline system. *Total for Russia includes all categories except transit via Russia, atransit outside Russia and Belarus. Grand Total includes total...

Georgia: BP And TPAO Buy Into Black Sea Blocks.(Turkish Petroleum Overseas Co., British Petroleum Company PLC)(Brief Article)
March 9, 2005... BP and Turkish Petroleum Overseas Co. (TPOC) have farmed in to three blocks in the Georgian Black Sea. The blocks -- 2A, 2B and 3 -- are operated by US independent Anadarko Petroleum Corp., which has a 48% production share of each license,...

Kazakhstan: Caspian Energy Wins New Exploration Acreage.(Brief Article)
March 9, 2005... Canadian junior explorer Caspian Energy has been awarded a 1,110 sq km exploration tract adjacent to its prospective North Block in the Aktobe region of western Kazakhstan. Caspian negotiated the deal through its 50% stake in Aral Petroleum...

Kazakh Crude Oil And Condensate Production, February 2005.
March 9, 2005... Kazakh Crude Oil And Condensate Production, February 2005

Cookie Jar: Russia To Dip Into Stabilization Fund.(Alexei Kudrin cuts oil prices)(Brief Article)
March 9, 2005... Bowing to populist pressure, the Russian government is dipping into its stabilization fund from windfall oil revenues to increase spending. Finance Minister Alexei Kudrin has agreed to raise the cut-off oil price to $23/bbl from $20/bbl,...

Tat's A Lot: Tatneft Overstates Profits By $140 Million.(Brief Article)
March 9, 2005... Russia's Tatneft overstated its net profits by some $140 million for the period from 2001 to the first half of 2003, the company said last week. The problem arose due to accounting errors that led to underestimating expenditures on...

Equities and Currencies.
March 9, 2005... Share Prices Closing On March 5, 2005

Crude Oil: Cold Snap In US Sparks Rally.(prices, exports)
March 9, 2005... Russian Urals differentials softened slightly but cash values are sharply up with futures. Brent futures saw volatility return with a vengeance with the April contract trading a $4.20 range -- albeit on a rising curve. From a $49.85 low on Mar....

Products: Gas Oil Finds Strength In The North.(Northwest Europe)
March 9, 2005... Differentials for Russian gas oil in Northwest Europe have remained strong this week on the back of rising futures and tight supply in NWE. Gas oil futures have nudged higher along with crude futures on fears of a world shortage in the face of...

Heavy Weight: Yukos Suffers In Q2 Exports Reshuffle.
March 16, 2005... Russia is planning to ramp up crude exports by 209,000 barrels per day in the second quarter, while carrying out a massive shakeup of trading patterns in the wake of the turmoil surrounding Yukos. The lion's share of the additional volumes via...

Long Wait: Oman Brings Shell On Board For Caspian Adventure.(Oman Oil Co. and Royal Dutch/Shell sign production sharing agreement with Oman Oil Co.)
March 16, 2005... After nearly a decade of negotiations, Oman is gearing up with its strategic partner Royal Dutch/Shell to sign a production sharing agreement (PSA) for Kazakhstan's Zhemchuzinha Block in the north Caspian Sea. It will be the first PSA for over...

Target: Gutseriev Eyes Yukos Share of Mol JV.(Mikhail Gutseriev's Rosneft, Zapadno-Malobalykskoye)(Brief Article)
March 16, 2005... The head of West Siberian producer Zapadno-Malobalykskoye, a joint venture between Yukos and Hungary's Mol, has been arrested on charges of violating the licensing agreement. Insiders claim, however, that he is the victim of a fight for control...

Big Time: Rosneft Hits Yukos With $11.2 Billion Lawsuit.
March 16, 2005... Yukos is struggling to fight off attacks from all sides. Hit with a multi-billion dollar lawsuit from Rosneft, Yukos' name also surfaced in a massive money-laundering bust in Spain and the Russian authorities are seeking to extradite its...

Old Bill: Taxman Targets Moscow Refinery.(Russia)(Brief Article)
March 16, 2005... The Moscow refinery, one of Russia's largest at 240,000 b/d, is coming under fire from Russian tax authorities. According to refinery shareholder Sibir Energy, the authorities have filed a $100 million back tax claim, which is related to a...

Inflation: Novatek Wants Higher Price For Total Sale.
March 16, 2005... Total could have to fork out more cash for its 25% stake in Novatek than intended, as the value of Russia's largest independent natural gas producer has increased considerably in the 15 months the French major has been working on the deal,...

Big Brother: Proposed Law Boosts State, Limits Foreigners.(natural resources legislation)
March 16, 2005... The government is set to consider legislation which would further consolidate power over granting natural resources use in the hands of the federal government, while limiting the role of foreigners. The government will discuss a new draft law...

Trading Places: Ex-Shell Man Joins TNK-BP Gas Projects Team.(Oleg Rumyantsev)(Brief Article)
March 16, 2005... Anglo-Russian joint venture TNK-BP has appointed Oleg Rumyantsev as vice president for government relations overseeing gas projects. He was formerly a vice president at BP rival Royal Dutch/Shell. As such, Rumyantsev will be "part of the...

Due In June: Rosneft-Gazprom Merger Set For June Completion.(Brief Article)
March 16, 2005... A program to consolidate the assets of Rosneft and Gazprom into a merged company has been agreed and "all main procedures will be completed by June of this year," the official website of Russia's Industry and Energy Ministry said, citing its...

Under Fire: Gazprom Criticized Over Investment Plan.
March 16, 2005... The Russian government has criticized Gazprom's 2005 draft financial plan and investment program, saying they need to be amended before being given final approval by the gas monopoly's board of directors. Gazprom's board of directors...

Russian Gas Production, February 2005.
March 16, 2005... Russian Gas Production, February 2005

Russian Refinery Activity, January 2005.
March 16, 2005... Russian Refinery Activity, January 2005

Refinery Gate Product Prices.
March 16, 2005... Refinery Gate Product Prices

Kazakhstan: Gazprom Pushes Plan To Process Karachaganak Gas.
March 16, 2005... Russian giant Gazprom is pushing ahead with plans to process gas from the giant onshore Karachaganak gas condensate field in Kazakhstan at its Orenburg gas processing plant in Russia. Gazprom and Kazakh state Kazmunaigas have agreed to set...

Kazakhstan: Moscow Makes Headway On Joint Developments.
March 16, 2005... Russian energy companies are pushing ahead with Caspian Sea developments, signing this week two agreements for joint projects with Kazakhstan. Lukoil forged a joint venture with Kazakhstan's state-owned Kazmunaigas (KMG) to work on the...

Caspian Crude Transit Volumes Via Russia, February 2005.
March 16, 2005... Caspian Crude Transit Volumes Via Russia, February 2005 ('000 metric tons)

Hunger: Lukoil's Appetite For Refineries Grows.(Brief Article)
March 16, 2005... Russian oil giant Lukoil's appetite for downstream assets is growing bigger, targeting refining capacities in Eastern and Western Europe, as well as on the other side of the globe. Lukoil President Vagit Alekperov says the company would be...

Kazakhstan: Kashagan Deal Almost Done, Odessa-Brody Pending.(Brief Article)
March 16, 2005... Kazakhstan will finalize the deal to purchase an 8.33% stake in the giant Kashagan field by Mar. 30, but has yet to decide whether to use Ukraine's Odessa-Brody pipeline for exporting its crude to world markets, Kazakh Minister of Energy and...

Ukraine: Yuschenko Builds Russian Ties.(Viktor Yushchenko meets Russian businessmen)
March 16, 2005... Ukraine's new President Viktor Yushchenko has held a meeting with Russian businessmen in Kiev to discuss investments and build relationships. Although some top Russian managers refused to attend, representatives of 20 leading Russian...

Lithuania: Mazeikiu Nafta Ramps Up Crude Processing.(Brief Article)
March 16, 2005... Lithuania's Mazeikiu Nafta (MN), which is controlled by embattled Russian oil major Yukos, is ramping up crude processing at its refinery, the only one in the Baltic states. The company said that its 260,000 b/d refinery processed 1.144...

Kazakh Gas Production, February 2005.
March 16, 2005... Kazakh Gas Production, February 2005

Kazakh Refinery Activity, February 2005.
March 16, 2005... Kazakh Refinery Activity, February 2005

Going Up: TNK-BP To Step Up Capital Investment.(Brief Article)
March 16, 2005... Anglo-Russian joint venture TNK-BP will invest about $1.8 billion in 2005, up from $1.5 billion last year, a company spokeswoman told Nefte Compass. Of that amount, 70%-80% will go toward upstream projects. TNK-BP was the only major player in...

Bargain Hunters: JKX Ready To Expand After Bumper Year.(JKX Oil and Gas PLC)(Brief Article)
March 16, 2005... UK independent JKX has announced ambitious plans to locate and secure undervalued gas assets in the former East Bloc region. JKX achieved retained profits after minorities of $19.7 million in 2004, up 84% from $10.7 million in 2003....

Equities and Currencies.
March 16, 2005... Share Prices Closing On March 15, 2005

Crude Oil: Cash Up, Differentials Down.
March 16, 2005... Russian Urals differentials received a drubbing of about $1 -- but benchmark Brent almost made up for it in higher cash values.a Global crude oils are experiencing a dislocation between physical and forward markets. Brent futures set a new...

Products: Cold Weather, Hot Prices.(gas oil)(Brief Article)
March 16, 2005... Cold weather in the US boosted gas oil futures and Russian differentials followed suit. The products market, however, has been a little volatile as traders assessed Opec statements promising increased production. Still, the demand for...

Pressure Valve: East Siberian Pipeline Plan Under Pressure.
March 22, 2005... Controversy is mounting over plans to build a pipeline from East Siberia to the Pacific coast to export Russian oil to Asian markets. Political and environmental pressures are increasing on pipeline sponsor Transneft, while various Russian...

Long Arm: Lukoil Expands Overseas Operations.
March 22, 2005... Lukoil is living up to its name as Russia's standard bearer overseas, as it expands its retail network into Central and Northern Europe and gets ready to start drilling in Saudi Arabia. Lukoil's Saudi venture is moving to the drilling phase...

Upstream Downturn: Investment Lag Means There Could Be Trouble Ahead.
March 22, 2005... The Russian oil industry -- among the world's fastest growing -- appears to be heading for a slowdown. Russia's Federal Energy Agency has so far estimated the rate of production growth for 2005 at 5%, though that number might go lower, Sergei...

Invading Species: Rosneft Encroaches On Yukos' Downstream Turf.(Brief Article)
March 22, 2005... Under a barrage of attacks by prosecutors and tax authorities, Yukos now faces a different threat on the domestic market, as Rosneft encroaches on its refining and trading operations. Rosneft has emerged as a fierce competitor on the...

Tattle Tale: Tatneft Signs Upstream Deal In Syria.(Syrian Petroleum Co.)(Brief Article)
March 22, 2005... Tatneft has signed a contract to explore and develop an oil and gas deposit in the Dayr al-Zur province in southeastern Syria, near the Iraqi border. Under the contract, Tatneft and state-owned Syrian Petroleum Co. have exclusive rights to...