NEFTE Compass articles from March 2006

NEFTE Compass archives from March 2006

Internal Affair: Chechnya Presents Moscow With New Oil Dilemma.
March 7, 2006... The approval late last week of Ramzan Kadyrov, the son of assassinated Chechen president Akhmad Kadyrov, as the new prime minister of Chechnya has once again raised the issue of who should control the oil resources of the war-torn Russian...

Cold Sweat: Rising Product Prices Have Moscow Worried.(the price of low-octane gasoline has risen)
March 7, 2006... Moscow is quickly building towards another confrontation over Russia's domestic product prices, whose sharp climb since the start of the year is being felt across the country. According to some officials, the price of low-octane gasoline...

Fast Forward: Crude Exports Rebound On Calmer Weather.
March 7, 2006... Russian crude exports through the national Transneft pipeline system rose sharply in February, rebounding from a significant drop caused by weather-related disruptions in January. Exports jumped 207,000 b/d in February from the previous...

En Route: East Siberian Pipeline Gets State Approval.
March 7, 2006... Despite rising environmental concerns, Russia's Federal Service for Environmental, Technological and Nuclear Oversight approved late last week the feasibility study for the first stage of the East Siberia pipeline to the Pacific coast for crude...

Balloon: Tatneft Stock Growth Raises Suspicion.
March 7, 2006... By the closing bell on Mar. 7, shares in Tatneft listed on Russia's RTS index had gained roughly 22% since the start of February and tripled in value since the company's decision in June 2005 to build a $3.2 billion deep-refining complex in...

Port Aid: Producers Bid To Save Tuapse Crude Exports.
March 7, 2006... Russian oil producers have signaled their disagreement with Rosneft's plan to turn the Black Sea port of Tuapse into a hub for oil products, halting shipments of Siberian Light crude to world markets. The issue was discussed this week at a...

Flying: Russia Gets Stuck Into CPC Pipeline.
March 7, 2006... Russian crude exports via the Caspian Pipeline Consortium (CPC) rose significantly during the first two months of this year and accounted for more than half of the total volumes of 2.2 million metric tons (576,000 b/d) shipped via the line in...

Overview: Moscow Delays Decision On Gas Master Plan.
March 7, 2006... Russia has again postponed plans to create a unified system for gas production, transportation and distribution, which would cover possible exports to China and other Asian countries. A new government commission being set up to guide energy...

Aiming High: Northgas Guns For Big Production Hike.
March 7, 2006... Russian natural gas producer Northgas has announced ambitious plans to increase gas production by almost 23% in 2006. It is gunning for output of 3.86 Bcm of gas this year, with condensate production targeted at 736,000 metric tons, up 14%....

Russian Crude Exports To Non-CIS Markets, February 2006.
March 7, 2006... Notes: Crude exports via Transneft pipeline system. *Total for Russia includes all categories except transit via Russia, transit outside Russia and Belarus. Grand Total includes total for Russia, transit via Russia and Belarus. ...

High Times: Higher Costs Hit Projects Hard.
March 7, 2006... Higher costs are hitting oil and gas producers hard in the former Soviet Union and beyond. Since the beginning of March, Eni and Chevron have both announced projected cost overruns in developing new fields in Kazakhstan, while Royal Dutch...

Kazakhstan: Chinese Step Up Race For Nations Energy.(Brief Article)
March 7, 2006... China International Trust and Investment Corp. Resources Holdings (Citic) is joining the US$2 billion-plus bidding contest for Nations Energy, the Canadian-registered company that operates the Karazahanbas field. Other bidders include...

Turkmenistan: Pipeline Blockage Forces Dragon To Slow Output.
March 7, 2006... Irish-registered Dragon Oil has been forced to partially suspend operations at the Dzheitun (LAM) field in the Cheleken Block of offshore Turkmenistan following a blockage to one of the field's pipelines. A mass of paraffin wax has clogged...

Turkmenistan: Corruption Probe Claims Two Oil Victims.
March 7, 2006... Corruption scandals are continuing to shake Turkmenistan's oil and gas sector, resulting in the dismissal of two high-ranked officials. Amangeldy Pudakov, the director of Turkmenbashi Refining Complex, and Sapar Yeldashov, the deputy...

Ukraine: Kherson Refinery To Get $500 Million Upgrade.
March 7, 2006... Moscow-based Alliance Group is to launch a $500 million upgrade of the Kherson refinery in Ukraine to improve the quality of its oil products. According to Alliance Ukraine, the company's local arm, the upgrade will be launched in 2007 and...

Aussies Boost Gas Reserves.
March 7, 2006... Australian independent Carpathian Resources said it has increased by 250% its natural gas reserves at the Janovice field in the Czech Republic. The Perth-based company, listed in Australia and London, said in a statement that new tests...

Great Divide: Analysts Split Over Gazprom Stock Impact.
March 7, 2006... As Russian gas giant Gazprom prepares for its Mar. 15 inclusion on the official RTS index at a 15% market weighting, some analysts are saying it may hold down the RTS index numbers for the year 2006. Opinions are split between a pure...

Equities and Currencies.
March 7, 2006... Share Prices Closing On Mar. 6, 2006*

Crude Oil: Opec Takes The Heat Out Of Futures.
March 7, 2006... Brent crude oil futures traded a $4.89 range between a $64.64 high on Mar. 3 and a $59.75 low on Mar. 8. The high came ahead of the weekend supported by rising tension over Iran's nuclear ambitions; the sell-off was led by the unwinding of New...

Products: Prices Slide Despite Decent Demand.(Brief Article)
March 7, 2006... The Northwest European (NEW) market for Russian gas oil weakened this week as futures prices slid sharply following sinking crude. Traders said demand was decent, but not enough to prop prices against global slide. The market in the...

Final Nail: Bankruptcy Suit Sends Yukos Into Death Throws.
March 9, 2006... The long-running Yukos saga appears to finally be drawing to a close after creditors asked the Moscow Arbitration Court to declare the company bankrupt. A group of creditor banks led by France's Societe Generale filed the bankruptcy suit late...

Spearhead: Rosneft To Poach Morgan Stanley Executive To Lead IPO.
March 9, 2006... Plans to raise a record $20 billion in an initial public offering (IPO) of state Rosneft's shares are being driven primarily by the Kremlin's desire to accumulate significant financial resources for the 2008 presidential election in Russia,...

Slackers: Moscow Cuts Exports Despite Welcoming Weather.
March 9, 2006... Moscow has decided to slash crude exports in spite of easier shipping conditions from smoother weather, dropping volumes by 20,000 b/d in the second quarter of 2006 from the first three months of the year (see p10). Russian crude exports...

Making Plans: Lukoil Eyes Further Expansion Outside Of Russia.
March 9, 2006... Top Russian producer Lukoil plans to participate in the privatization of Serbia's oil monopoly Naftna Industrija Srbije (NIS), as the company continues its aggressive expansion outside of Russia. Lukoil President Vagit Alekperov told a...

Hardball: Deal Looms for Russia-China Gas Connection.
March 9, 2006... Gazprom expects to sign a cooperation agreement with China National Petroleum Corp. (CNPC) during President Vladimir Putin's planned visit to Beijing next week. It's the first indication of major progress toward pipeline exports of Russian gas...

Dependence On Offshore Production Building.
March 9, 2006... Offshore production could account for 20% of Russia's total hydrocarbon output by the year 2020, according to an offshore energy development strategy report submitted by the Russian Ministry of Natural Resources to the government last week. ...

Talking Shop: Gazprom Mulls Sonatrach Deal.
March 9, 2006... Russia and Algeria last week agreed to write off the latter's $4.7 billion debt to Moscow, likely paving the way for Russian companies to expand their presence in North Africa. The agreement was reached during President Vladimir Putin's...

Getting Defensive: Russian Railways Complains About East Siberian Pipe.
March 9, 2006... Russian Railways is looking to protect its investment into infrastructure facilities for oil shipments to China, which could suffer after the construction of the East Siberian pipeline. The state-run monopoly has sent a letter to Russian...

Tatneft Finalizes Refinery Sale.
March 9, 2006... Tatar American Investment Fund (TAIF) holding TAIF-NK has completed its takeover of the Nizhnekamsk Refinery, purchasing Russian oil company Tatneft's refinery assets for 9.2 billion rubles ($330 million), TAIF-NK chairman Vladimir Presniakov...

Reroute: Bosporus Bypass Firm Planned.(Rosneft and Sibneft Oil in jopint ventures to construct pipelines)(Brief article)
March 9, 2006... An international company is being set up this month to construct the Bourgas-Alexandroupolis pipeline from the Bulgarian Black Sea coast to Greece's Aegean coast that would ease congestion at the crowded Black Sea straits, according to sources...

Venture Capital: Zarubezhneft Wants More Of Vietsovpetro's Profits.
March 9, 2006... Zarubezhneft wants to increase its stake in profits received from Vietsovpetro, its joint venture with PetroVietnam, the Russian company's General Director Nikolai Tokarev said, according to news reports. The Russian company currently...

Moving Up: Novatek Boosts Reserves Strongly.
March 9, 2006... Russia's largest independent gas producer Novatek announced Friday that it had increased proven reserves 9.4% in 2005. According to an audit by US reserve specialists DeGolyer and MacNaughton, using United States Security Exchange...

Kazakhstan: Kazakhs Keep Export Options Open As New Routes Come On Stream.
March 9, 2006... As oil begins to fill the 980 km pipeline running east from Kazakhstan to China and with the Baku-Tbilisi-Ceyhan (BTC) pipeline just weeks away from pumping its first barrels west to the Mediterranean, two more export options are opening up for...

Ukraine: Higher Output Gives Boost To JKX Earnings.(JKX Oil and Gas PLC on its profits)(Brief article)
March 9, 2006... UK independent JKX Oil and Gas announced an increase in profits of 119% in 2005, thanks to rising prices plus improved production. The company also said it is looking to expand operations in its Ukrainian core. Production rose to 9,309...

Ukraine: Galitchina Refinery Changes Hands.
March 9, 2006... Ukrainian Deputy Igor Eremeev reportedly has sold his 41% stake in Ukraine's Galitchina refinery to Privat Group. The sum and the details of the deal were not disclosed. Privat Group is said now to control the refinery through a reported...

Lithuania: Vitol Grabs New Klaipeda Products Terminal.(Vitol S.A.)(Brief article)
March 9, 2006... International trader Vitol has claimed control over exports from a new products terminal at the Lithuanian port of Klaipeda, strengthening the Swiss-registered firm's grip over the country's seaborne exports. Sources say that Vitol signed...

Kazakhstan: Juniors Start FSU Output.
March 9, 2006... Victoria Oil and Gas, a small company that floated on London's Alternative Investment Market last year, said recently that it had started first oil production from its Kemerkol oil project in the Atyrau region of western Kazakhstan. ...

Doling Out: Surgut Plans Modest Increase In Dividend Payments.
March 9, 2006... Surgutneftegas plans to increase its dividend payments by 15% for 2005, a rise that observers expect the market to greet warmly despite being significantly outpaced by the company's net profits. Surgut President Vladimir Bogdanov reportedly...

In The Family: RTS Adds Gazprom, Continues Slide.
March 9, 2006... Russian gas behemoth Gazprom was formally added to Moscow's benchmark RTS stock index Wednesday to a largely neutral reaction from the market, which continues to drift sideways around 10% below its peak on Feb. 27. Having been up 72% over...

Equities and Currencies.
March 9, 2006... Share Prices Closing On Mar. 14, 2006

Crude Oil: US Gasoline Rally Leads Crude Higher.
March 9, 2006... Brent crude oil futures traded a $4.83 range between a $64.09 high on Mar. 14 and a $59.26 low on Mar. 8. The preceding week's low was led by the unwinding of New York's unleaded gasoline futures contract, this week's high was triggered by an...

Products: Cold Weather, Higher Demand Support Prices.(Brief article)
March 9, 2006... The market for Russian gas oil tightened markedly this week following futures prices which rose significantly on higher demand, cold weather and a stronger US market. Expectations of colder weather in Northwest Europe led to a stronger...

Oil Change: Caspian Exporters Uneasy Over Baku Upheavals.(Azpetrol owners Rafiq Aliev and Farhad Aliev arrested)
March 22, 2006... Caspian oil exporters led by Exxon Mobil and Chevron are struggling with the uncertainty created by the collapse of a key transportation company in Baku after its owners were arrested in last October's alleged coup attempt in Azerbaijan. ...

Phoenix Rising: Kazakhstan Rings The Changes With New Holding Company.
March 22, 2006... Kazakhstan's oil and gas industry is bracing itself for change following the creation of a new holding company called Samruk, which will manage the state's shareholding in Kazmunaigas (KMG) and four other state-owned companies: state...

Red Carpet: China, Russia Forge Three Energy Deals.
March 22, 2006... Beijing rolled out the red carpet for Russian President Vladimir Putin this week and was rewarded with three new agreements paving the way for the two nations to broaden their cooperation in the oil and gas sector. It was Putin's first visit to...

Old Wounds: February Output Feels The Cold.(Brief article)
March 22, 2006... Russian crude production continued to suffer from winter's onslaught in February, rising a modest 14,600 b/d from January, when Arctic conditions across the oil heartland depressed output sharply. Crude and condensate output amounted to...

Going Native: Rosneft Bases Growth On Assets Inside Russia.
March 22, 2006... State producer Rosneft aims to increase oil production by 45% to 2.15 million b/d by 2010 and expects growth to continue over the next decade to 3.11 million b/d by 2020. Rosneft produced 1.49 million b/d in 2005. In the near term,...

Face Control: Authorities Deny Entry To Top Investor.(shareholder policies, foreign investment laws)(Brief article)
March 22, 2006... Russian authorities have denied entry to William Browder, chief executive of the largest foreign fund investing in Russian stocks. Citing a rule that bars foreigners deemed a threat to national security, authorities stopped Browder from...

Decent Proposal: Total Gives Gazprom Shtokman Proposal.
March 22, 2006... French major Total reportedly has offered Gazprom a stake in Norway's Snohvit project and its share in a US Gulf regasification plant in exchange for a stake in the monstrous Shtokman gas field. Total is offering more than a 10% stake in...

Free At Last: Court Removes Yugansk As Loan Guarantor.
March 22, 2006... The Moscow Court of Arbitration has upheld a claim filed by Russian state-owned Rosneft removing Yuganskneftegas as guarantor on a $1.6 billion loan given to Yukos in 2003. Yukos attracted the loan from majority shareholder GML Ltd. and...

Top Spot: Lukoil Boosts Reserves, Holds On To Second Place.
March 22, 2006... Lukoil's proven oil and gas reserves grew to 20.33 billion boe last year, solidifying the company's position at the top of the Russian rankings and second among the world's private oil and gas majors to Exxon Mobil. On Jan. 1, 2006, Lukoil...

English Rose: Sibir Boosts Cash With Share Placement.(Sibir Energy PLC issues ordinary shares to raise finance)(Brief article)
March 22, 2006... UK-registered Sibir Energy has raised $130 million from the placement of an additional 20 million new ordinary shares with company shareholders at a price of 392 p/share. Sibir's major shareholder, Russian-controlled Bennfield Capital, is...

Southward Bound: Russia Expands In India.(Indian Oil Corp. partners with Stroitransgas )(Brief article)
March 22, 2006... Pipeline constructor Stroitransgas is teaming up with Indian Oil Corp. (IOC) in a bid to expand the Russian company's presence in the fast-growing Asian market. Stroitransgas and IOC signed last week a five-year memorandum of understanding...

Talking Tough: Integra Bids To Rival Halliburton, Schlumberger In Russia.
March 22, 2006... Integra, a US-controlled oil-field services business with ambitions of rivaling Halliburton and Schlumberger in Russia, has added another company to its growing list of acquisitions. Integra bought First National Drilling (PNBK), an...

Sunny Days: Itera Enters American LNG Project.
March 22, 2006... Suntera -- a partnership involving Russian gas trader Itera -- has joined Dutch Petroplus' 4Gas in developing Canada's Keltic Petrochemicals' LNG project in Nova Scotia, Canada, according to Keltic (NC Feb. 23,p7). Maple LNG, a joint...

Liquid Power: Gazprom, Petro-Canada Progress With LNG Plans.
March 22, 2006... Russia's Gazprom and Petro-Canada are moving forward with aggressive plans to bring the first shipments of Russian LNG to Canada and the US Northeast by 2010. Gazprom Chief Executive Alexei Miller and his counterpart at Petro-Canada, Ron...

Georgia: Tbilisi Takes The Lead From Gas.
March 22, 2006... Bombs that blew up two Russian gas pipelines supplying Georgia earlier this year were a powerful reminder of Tbilisi's 100% energy reliance on its northern neighbor, though its efforts to break free are making some progress. The arrival of...

Belarus: Dependence On Russia Deepens As Lukashenko Wins.(President Alexander Lukashenko wins elections, petroleum industry forecast)(Brief article)
March 22, 2006... Incumbent President Alexander Lukashenko has claimed victory in Belarus' strongly criticized election, setting the stage for the Kremlin-friendly state to enjoy several more years of heavy subsidies on Russian oil and gas. Lukashenko...

Black Gold: Anadarko Optimistic About Black Sea Potential.(petroleum)(Brief article)
March 22, 2006... The Black Sea could have the same oil and gas potential as the Caspian Sea, according to Anadarko Petroleum Corp. "The Black Sea Basin is a frontier basin. We know very little about it, but it could have enormous potential, it could even...

Black Spot: Plans Revealed For Georgia-Ukraine Gas Line.
March 22, 2006... Plans to build a $2 billion natural gas pipeline running under the Black Sea between Georgia and Ukraine were unveiled last week at an energy conference in Tbilisi. The 1,000 km route -- dubbed the Georgia-Ukraine-European Union pipeline,...

Uzbekistan: UK Minor Seeks AIM Listing.(Rosehill Energy to join London Stock Exchange PLC's Alternative Investment Market)(Brief article)
March 22, 2006... Rosehill Energy, a recently established UK independent that at the end of last year took over a service contract held by Baker Hughes to increase production at the North Urtabulak field, is hoping to join the growing list of Central Asian...

Refined Tastes: Gazprom Eyes Bashkir Energy Assets.
March 22, 2006... Gazprom may be eyeing a purchase of Bashkir energy assets, sources suggest, pointing to the Russian gas giant's recent visit to the president of the Bashkir Republic, Murtaza Rakhimov. Bashkir Capital, which controls several Ufa-based...

Small Fries: Novatek Plans Lower Dividend For 2005.
March 22, 2006... Russia's top independent natural gas producer Novatek reportedly plans to significantly cut the percentage of net profits it will turn into share dividends for 2005, raising eyebrows among the banking community that has embraced the...

Equities and Currencies.
March 22, 2006... Share Prices Closing On Mar. 21, 2006

Crude Oil: Plentiful Supplies Depress Differentials.
March 22, 2006... Brent crude oil futures traded a $3.37 range between a $64.35 high on Mar. 17 and a $60.98 low on Mar. 21 but finally rebounded on Mar. 22 following an unexpectedly bullish US inventory report. The high and low were both led by trading plays...

Products: Higher Temperatures, Lower Futures.
March 22, 2006... Gas oil experienced an upswing in demand on Mar. 22 after a week of falling prices because of dropping futures and warmer-than-expected weather. Traders reported increased liftings in Northwest Europe on demand from inland Europe and a...

Cold Sweat: Bankruptcy Brings The End Closer For Yukos.
March 28, 2006... A Moscow court's decision this week to appoint an external manager to stricken oil company Yukos has set the table for Kremlin-friendly companies to consume the remaining assets of Russia's former top earning oil major and for state-owned...

Hot Tap: Security Concerns Rise As BTC Pipeline Fills Up.
March 28, 2006... With only two months to go before the first tanker is loaded with crude from the Baku-Tbilisi-Ceyhan (BTC) pipeline, the well-worn cliche of "a dream becoming a reality" is fast giving way to the "nightmare" of keeping the line secure for the...

Future Shock: Urals Back In The Frame As Futures Benchmark.
March 28, 2006... It is a glaring inconsistency that million of barrels of sour crudes every day are routinely priced against light, sweet crudes like benchmark Brent-BFO or Nymex WTI futures. However, given the obvious quality discrepancies, this system has...

Jigsaw: Shtokman Partners Take Their Places.
March 28, 2006... Gazprom has likely picked its final partners in the massive Shtokmanovskoye LNG project, located in Russia's Arctic Barents Sea. The Russian gas giant has reportedly asked Norway's Statoil and Norsk Hydro and US majors Chevron and...

Arm Twist: E.On Resists Gazprom Pressure.
March 28, 2006... Gazprom is said to be again -- or still -- pressing E.On for a stake in its mainland Europe gas supply business Ruhrgas, as part of a deal that would give E.On a 24.5% stake in the 700 billion cubic meter (24.7 trillion cubic foot) Yuzhno...

Talking Italian: Gazprom, Eni Discuss Gas Supplies.
March 28, 2006... In line with its strategy to expand marketing activities in Western Europe, Russia's Gazprom is pushing ahead with its efforts to expand in Italy's gas market. Gazprom Chief Executive Alexei Miller and Eni Chief Executive Paolo Scaroni...

Standing Alone: Majors Turn Away From Northern Pipeline.
March 28, 2006... Rosneft is not interested in the so-called northern oil pipeline that national operator Transneft plans to build in the Timan-Pechora province, as the state-owned producer has been developing its own export infrastructure in the region. ...

Loaded: Crude Loadings Drop As Baltic Line Is Completed.
March 28, 2006... Russia has completed the Baltic Pipeline System (BPS) project, Industry and Energy Minister Viktor Khristenko proudly reported to President Vladimir Putin this week, adding that starting from April loading volumes for the port of Primorsk will...

Poles Apart: Rosneft Wants Conoco Out Of Polar Lights.
March 28, 2006... Rosneft would like to buy ConocoPhillips out of the Polar Lights joint venture in which the two companies hold equal stakes, according to insiders. The state-owned major was considering offering another asset to Conoco in return for its...

Comeback: Vavilov Stages Return To Oil Scene.
March 28, 2006... Senator and former Deputy Finance Minister Andrei Vavilov is set to return to the oil and gas business, having acquired licenses to reserves in the Yamal-Nenets autonomous district in West Siberia, according to industry sources. Vavilov...

It's Ufa: Bashkir Refineries To Be Restructured.
March 28, 2006... Russia's Sistema and Bashkir Capital may establish a vertically integrated holding company, including three of the country's most sophisticated refineries, as early as the third quarter of 2006, Sistema Chairman Vladimir Evtushenkov said last...

Spring Melt: Lukoil To Unfreeze Gasoline Prices.
March 28, 2006... Lukoil is expected on Apr. 1 to unfreeze its retail gasoline prices, ending a commitment that it unilaterally took upon itself at the beginning of the year. Russian oil companies bowed to government pressure for a freeze last September...

Ukraine: Russian Gas Talks Loom As Kiev Counts The Votes.
March 28, 2006... The surprise second-place finish of Yulia Timoshenko's bloc in the Ukrainian parliamentary elections puts President Viktor Yushchenko in the difficult position of choosing between rivals to form a majority coalition. One of its most pressing...

Bosporus Bypass: Total Keeps Faith With Samsun-Ceyhan Line.
March 28, 2006... Following the completion last week of a feasibility study on the proposed Samsun-Ceyhan pipeline, France's Total is convinced that its route is the most economically and strategically sound route to bypass the crowded Turkish Straits. But it's...

Kazakhstan: Eni Faces Flak Over Kashagan.
March 28, 2006... Rumblings of discontent from the Kashagan consortium appear to be getting louder, but not all the criticism stands up under close inspection. According to Kazakh press reports from Atyrau, several of the partners are unhappy with Eni's...

Turkmenistan: Ukraine Strikes Deal Over Gas Debts.(Brief article)
March 28, 2006... Turkmenistan and Ukraine have likely made an important step toward settlement of a dispute over Kiev's debts for Turkmen gas supplies in 2003-05. Ukraine's state Naftogas Ukrainy last week reached agreement with Ashkhabad over $169.6...

Tajikistan: Gazprom Eyes Upstream Openings.
March 28, 2006... Russia's Gazprom is pressing ahead with its campaign to direct more Central Asia gas flows into the Russian transportation system, and to expand its presence in upstream projects in that region. The Russian gas giant and the government of...

Untidy State: State Firms Slated For Putting Politics Before Profits.(Brief article)
March 28, 2006... While high international crude prices are keeping the RTS Russian stock market index firm, increased political intervention in business has fueled growing skepticism in banks' valuations of market players. Deutsche Bank slashed its...