NEFTE Compass articles from November 2006

NEFTE Compass archives from November 2006

Big Brother: Russia Puts The Squeeze On Neighboring Markets.
November 7, 2006... Nearly a year after the cutoff of natural gas supplies to Ukraine sent shivers across Europe, Russia is increasingly flexing its oil and gas muscle to win influence, much to the continued dismay of the West. But while Russia's aggressive energy...

Italian Job: Gazprom Sets Its Sights On Eni Asset Swap.
November 7, 2006... Italy, the second biggest customer for Russian gas after Germany, is being targeted as part of Gazprom's aggressive strategy to gain a foothold in its key markets. Gazprom Chief Executive Alexei Miller will meet his Eni counterpart Paolo...

China Syndrome: Questions Raised Over Oil Pipeline To China.
November 7, 2006... On the eve of an official visit to China by Russia's Prime Minister Mikhail Fradkov on Nov. 9-10, where energy cooperation between the two countries is going to be high on the agenda, reports have emerged indicating that Moscow could refuse to...

Field Pressure: Prosecutor Pressures TNK-BP Gas Producer.
November 7, 2006... Russia's General Prosecutor's Office has asked the Subsoil Agency to revoke the licenses for fields held by Russian-UK joint venture TNK-BP's gas production subsidiary Rospan International in the West Siberian Yamal Nenets region for alleged...

Role Play: Ruling Over Oil Exports Unlikely Before Year-End.
November 7, 2006... The decision on who will be in charge of Russia's crude exports schedules has been postponed until the end of the year. The deadline to prepare a draft resolution on the regulation of oil exports by Russia's Federal Antimonopoly Service has...

Touchy Subject: Russia Reviews Senstive Areas Of Energy Strategy.(Brief article)
November 7, 2006... Russia aims to complete amendments to its long-term energy strategy in 2008, with the new version to include forecasts until the year of 2030, Industry and Energy Minister Viktor Khristenko said last week. As part of the work on the new...

Swedish Scoop: West Siberian Buys Timan-Pechora Company.
November 7, 2006... Stockholm-listed independent West Siberian Resources has bought Russian oil company Nortoil for $115 million, adding more than 100 million bbl to reserves and expanding operations in the Timan-Pechora region of northern Russia. Privately...

Sale OnMol Gains Approval ForSiberian Buy.
November 7, 2006... The Russian Antimonopoly Service has approved Hungarian Mol's purchase of the remaining 50% stake in the Mol-North West Oil Group, holder of the exploration licenses to the Surgut-7 block, according to Mol. Mol initially paid $11 million...

Marmara Murmur: Lukoil Buys Oil Products Terminal In Turkey.
November 7, 2006... Russia's No. 1 producer Lukoil has purchased an oil products terminal from Turkey's Turcas Petrol near Istanbul and the Sea of Marmara, according to a source at Turcas who declined to give further details until they were released to the...

Pipe Rival: Indians Sign Up For Bosporus Bypass.(Brief article)
November 7, 2006... Indian Oil Co. has signed an agreement on its possible participation in the planned Samsun-Ceyhan oil pipeline to bypass Turkey's congested Bosporus Strait, Italian major Eni said. The Indian state company signed the agreement with Eni and...

Operator: BG Sheds Light On LNG Talks with Gazprom.
November 7, 2006... BG Chief Executive Frank Chapman has outlined how "exploratory" talks with Gazprom on potential LNG supplies are going, emphasizing BG's strong existing position in the US and global LNG markets. "Gazprom is not an LNG operator; BG is,"...

Slow Start: Second Sakhalin-1 Tanker Sails As Fresh Delay Looms.
November 7, 2006... The second tanker from the Exxon Mobil-led Sakhalin-1 project on Russia's Pacific shelf has departed without incident from the De Kastri terminal, but smooth running so far appears to have done little to bring the pace of the massive oil and...

Sakhalin-1 Gas Prospects Still Uncertain.
November 7, 2006... Russia has no plans to limit Exxon Mobil's right to export gas from the Sakhalin-1 project independently of gas giant Gazprom, as the project is being developed under a production sharing agreement (PSA), according to Deputy Industry and Energy...

Shell Joint Venture To Get New CEO.
November 7, 2006... The chief executive of the Salym Petroleum Development (SPD) joint venture between Royal Dutch Shell and Russian independent Sibir Energy joint venture, Dale Rollins, will be leaving his post in early 2007, as the Shell-led West Siberian...

Lukoil Could Buy Conoco Assets.
November 7, 2006... Lukoil is declining to comment on press reports that the Russian major is the most likely suitor for a chain of petrol stations in the Czech Republic its strategic ally ConocoPhillips could sell. Conoco -- which currently holds 19% in...

Lithuania: EU Gives Green Light To Refinery Takeover.
November 7, 2006... The European Union has granted permission for Poland's PKN Orlen to purchase Lithuanian refiner Mazeikiu Nafta (MN), removing the last official hurdle for the deal (NC Nov.2,p1). Representatives for PKN Orlen said before the EU approval...

Kazakhstan: Nations Still Open For Offers On Oil Field.
November 7, 2006... Chinese company Citic remains the front-runner with a US$1.91 billion bid to buy the Karazhanbas field from Canada's Nations Energy although there is still another month or so for other bidders to come in with superior offers, providing they...

Kazakhstan: Russian Crude To Flow Via Kazakh-China Pipe.
November 7, 2006... It is still an open question as to when and how much Russian crude will start flowing to China through Kazakhstan via the newly built Atasu-Alashankou pipeline. The issue was discussed at the end of October at a meeting of the...

Azerbaijan: Russneft Signs PSA For Zykh-Govsany Fields.
November 7, 2006... Russian independent Russneft and Azeri state-owned Socar have inked a production sharing agreement to upgrade and develop the Zykh and Govsany fields onshore Azerbaijan. The 25-year contract is Russneft's first deal outside Russia. The...

Turkmenistan: Huge Gas Field Discovered.
November 7, 2006... Turkmenistan said it had discovered new huge gas reserves totaling some 7 Tcm of gas, twice as big as the huge Shtokman field in the Barents Sea, which harbors 3.7 Tcm of gas. According to Turkmen President Saparmurat Niyazov the reserves...

Big Bang: Russian Stock Exchanges Hit Six-Month High.
November 7, 2006... The Russian RTS and Micex stock exchanges hit a six-month high on Nov. 8, mainly on growth in world markets and the perceived stabilization of crude futures prices from an Opec production cut. The RTS closed at 1,675, its highest level...

Cut Rate: Azerbaijan Taps Market To Refinance Shah Deniz.
November 7, 2006... Azeri state oil company Socar plans to sign an agreement for a loan worth $175 million from a group of Western banks this month to finance its part in the completion of the first phase of the BP-led Azeri offshore Shah Deniz gas field, a Socar...

Equities and Currencies.
November 7, 2006... Share Prices Closing On Nov. 7, 2006

Crude Oil: Opec Cut Fails To Move Market Higher.
November 7, 2006... Brent crude oil futures have rattled around in a relatively narrow $2.96/bbl range between a $57.60 low on Nov. 2 and a $60.56 high on Nov. 6. Opec's recent decision to cut production by 1.2 million b/d as of Nov. 1 has not triggered the...

Products: Mixed Week Ends Firmer.
November 7, 2006... Middle distillate prices were mostly mixed through the week with gas oil tracking crude futures and high-sulfur fuel oil finding support from Asian arbitrage trade. Gas oil prices in Northwest Europe backed off previous gains early on...

Green Tide: Russia To Sustain Environmental Pressure In Election Run-Up.
November 14, 2006... The environmental onslaught on the Russian oil and gas industry is gathering pace amid signs that it has become the government's newer, subtler tool of choice, replacing massive back-tax bills, for showing who's in charge. Next week the...

Red Mist: Poland Faces Baltic Fallout As Tension Mounts With Russia.(mergers and acquisitions)
November 14, 2006... Despite warnings that its agreement to buy Lithuanian refinery Mazeikiu Nafta (MN) could turn into a financial disaster, and worse still, jeopardize the stable supply of Russian crude oil to Poland, publicly traded Polish oil group PKN Orlen...

Dry Season: Weak Floating Storage Season Trickles To A Close.(Brief article)
November 14, 2006... The planned departure of Gunvor's tanker Tropical Brilliance on Nov. 17 from St. Petersburg will bring the floating storage season in Russia to a close after a very light year due to the shutdown of Europe's top inland shipper Volgotanker. ...

Democratic Sweep: Despite WTO, US Change Could Raise Tension.
November 14, 2006... After months of stalling, the US and Russia have come to terms on the latter's accession to the World Trade Organization, just days after a Democratic sweep in the US Congressional elections raised fears that an agreement could be significantly...

Paper Wait: Moscow Throws Its Weight Behind Rebco Contract.
November 14, 2006... After weeks of watching the new Russian Export Blend Crude Oil (Rebco) futures contract foundering aimlessly, Moscow appears to have sent down the order to spark activity in the contract, which Russian officials hope will boost the price of the...

China Play: Rosneft Cements Energy Ties With China.
November 14, 2006... Russia's state-controlled Rosneft hopes to finalize a deal to set up two joint ventures with China's National Petroleum Corp. (CNPC) by the end of the year. Rosneft President Sergei Bogdanchikov said in Beijing last week that "the joint...

Upper Hand: Gazprom Dismisses Ryazanov As Deputy CEO.
November 14, 2006... Russian state-controlled Gazprom has dismissed Alexander Ryazanov from his duties as the gas giant's deputy chief executive officer and president of Gazprom oil subsidiary Gazprom Neft, formerly Sibneft. Observers said the shift represented...

Italics: Gazprom, Eni Sign Strategic Pact.
November 14, 2006... Gazprom and Italy's Eni signed what they termed a "broad strategic agreement" in Moscow this week, including an extension of Russian gas supply contracts, plus cooperation in the upstream, LNG, technology and potentially also power sectors. ...

Green Light: Nord Stream Seeks Regional Approval.
November 14, 2006... The Gazprom-led consortium developing the Nord Stream gas pipeline from Russia to Germany has submitted information for an environmental impact assessment -- related to the construction of the Baltic Sea section of the pipe -- to the...

Getting Associated: TNK-BP And Sibur Forge Gas Processing Venture.
November 14, 2006... TNK-BP and Gazprom's petrochemical subsidiary Sibur have signed an agreement to set up a joint venture to process the Russian-UK joint venture's associated gas in Western Siberia. Sibur takes a 51% stake in the new venture, though the two...

Idlers: TNK-BP To Reduce Idle Wells.
November 14, 2006... TNK-BP plans to spend some $2.2 billion through 2011 reducing the number of the company's idle wells, the Russian-UK joint venture says. TNK-BP Executive Director German Khan presented the plan to Natural Resources Minister Yuri Trutnev...

Clawback: TNK-BP Settles 2002-03 Back-Tax Bill.
November 14, 2006... TNK-BP and the Russian Tax service have settled their long-running dispute over a governmental audit claiming the Russian-UK joint venture owed 53 billion rubles ($1.84 billion) in back taxes for 2002 and 2003, the company said without naming...

In The Dock: Prosecutor Opens Case Against TNK-BP Unit.
November 14, 2006... The regional prosecutor in West Siberia's Yamal Nenets region has opened a criminal case against UK-Russian TNK-BP's gas subsidiary Rospan International, alleging illegal profit-taking after the Russian Natural Resources Ministry's regional...

Workers United: Moscow To Give Ear To Surgut Labor Unrest.(Surgutneftegas)(Alexander Zakharkin)(Brief article)
November 14, 2006... Once held up by the Kremlin as a standard for social responsibility, labor unrest at Russia's most opaque oil major Surgutneftegas has found an ear in Moscow, with the Russian Federal Labor Service (Rostrud) holding a special meeting to discuss...

Over And Out: Sakhalin-2 Overruns Disputed.(Brief article)
November 14, 2006... Russian state Zarubezhneft said this week that the massive cost overruns of the Royal Dutch Shell-led Sakhalin-2 development on Russia's Pacific Shelf are unnecessarily inflated by $2.5 billion. The company was hired by the Industry and...

BPS Expansion Gets Unexpected Boost.(Baltic Pipeline System )(Brief article)
November 14, 2006... The head of Russia's state oil pipeline monopoly Transneft, Semyon Vainshtok, said this week that the expansion of the Baltic Pipeline System (BPS) that feeds the port of Primorsk will be completed by the end of the month, bringing the...

Kazakhstan: Gas Pipeline To Strengthen Kazakh-China Ties.
November 14, 2006... Setting aside rising concern in Kazakhstan about China's growing influence in the former Soviet republic's oil and gas industry, the two countries are looking to start construction next year of a cross-border natural gas pipeline. Musabek...

Tajikistan: Zarubezhneftegas Targets Upstream Projects.
November 14, 2006... Russia's Gazprom is lining up upstream rights in Tajikistan, as part of its push to secure new projects and gas supplies in Central Asia. Zarubezhneftegas, Gazprom's subsidiary for overseas projects, is poised to receive the new license,...

Kazakhstan: Tengizchevroil Launches Sour Gas Injection Project.
November 14, 2006... Chevron affiliate Tengizchevroil announced the launch of its sour gas injection (SGI) project at the massive Tengiz oil field in Kazakhtan, with the completion of the first injection tests to reuse associated gas and increase production rates....

Georgia: Tbilisi Hopes To Cut Dependence On Russian Gas.(Brief article)
November 14, 2006... Georgia hopes to reduce its dependence on Russian gas by 50%-80% by the end of 2007, as it expects to sign deals with both Azerbaijan and Iran by the end of this year, Georgian Prime Minister Zurab Nogaideli told reporters during a visit to...

Caspian Pipe: Russia Rejects CPC Expansion Plans.
November 14, 2006... Efforts to double the capacity of the Caspian Pipeline Consortium (CPC) line from Kazakhstan to a Russian Black Sea terminal have taken another blow after the Russian government rejected the consortium's proposal because of disagreements over...

Azerbaijan: BP Closes Export Pipeline For Repairs.
November 14, 2006... BP said it had closed an oil pipeline from Baku in Azerbaijan to the Georgian Black Sea port of Supsa for repairs, but that it would not have an impact on crude exports as there was ample room in the Baku-Tbilisi-Ceyhan (BTC) pipeline to take...

Lithuania: Mazeikiu Nafta Faces New Management Turmoil.
November 14, 2006... The Yukos-backed members on the management board of Lithuanian refiner Mazeikiu Nafta (MN) have tendered their resignations following a failed attempt to oust the plant's general director, Paul Nelson English, who is pushing forward with the...

Taking Stock: MSCI Index Denies Rosneft Inclusion.
November 14, 2006... Despite heavy expectations from the market, Morgan Stanley Capital International (MSCI) has decided not to include the shares of national oil champion Rosneft on its widely followed emerging market index for the time being, leading some equity...

On The Road: Gazprom Prepares $1 Billion Eurobond Issue.
November 14, 2006... Russian gas giant Gazprom is planning a new eurobond issue of up to $1 billion, according to local reports. A roadshow for the issue started on Nov. 13 and is planned for completion on Nov. 16, with Credit Suisse and UBS acting as joint...

Equities and Currencies.
November 14, 2006... Share Prices Closing On November 14, 2006

Crude Oil: Good Demand Firms Differentials.
November 14, 2006... Brent crude oil futures continued to trade range-bound between a $58.46 low on Nov. 8 and a $61.43 high on Nov. 10 with support coming from Opec talk about further production cuts, while pressure was exerted by high stocks and poor demand for...

Products: Gas Oil Recovers, Fuel Oil Weakens.
November 14, 2006... Middle distillate prices were mostly down over the past week tracking losses in crude futures, although gas oil prices firmed on Nov. 15, while fuel oil prices showed continued weakness. Traders said most of the volumes out of Russia were...

Double Barrel: Lukoil Takes A New Tack At Home And Abroad.
November 20, 2006... Lukoil is adopting a two-pronged growth strategy in pursuit of its goal of becoming a global major in the next decade. On the international market it is scouring for opportunities and has been quick to spot an opening in the market in Iran....

Top Gun: Gunvor: Russia's Rising Oil Tsar.
November 20, 2006... As control of the Russian oil industry becomes increasingly centralized around President Vladimir Putin and his allies from St. Petersburg, the influence of Swiss-based trading firm Gunvor continues to grow. Set up more than 10 years ago by...

Making Friends: Sibur Eyes Further Cooperation With Oil Majors.
November 20, 2006... Gazprom's petrochemical subsidiary Sibur has unveiled plans to expand its cooperation with Russia's oil companies by establishing joint ventures to process more associated petroleum gas at Sibur's facilities. According to Sibur head...

Sealed Deal: Russia, US Sign WTO Agreement.
November 20, 2006... Russia and the US have sealed a deal opening the way for Russia to join the World Trade Organization in an agreement many observers see as a carrot from Washington to bring the Kremlin on board with tough negotiations over Iran and North Korea....

Rekindled Flame: Litasco Shows Some Interest In Rebco.
November 20, 2006... Lukoil's trading arm Litasco would be interested in using a hedging instrument such as the new Rebco (Russian Export Blend Crude Oil) futures contract, a Litasco senior executive told Nefte Compass. He couldn't say, however, whether Lukoil...

Going Steady: Russia's Crude Production To Remain Stable.
November 20, 2006... Russia will produce between 510 million and 540 million metric tons/yr of crude (10.2 million to 10.8 million b/d) by 2015, according to Alexander Zhukov, Russia's deputy prime minister. Speaking at an oil conference in Moscow last week,...

Happy Together: Lukoil, Gazprom Neft Plan JV For Acquisitions.
November 20, 2006... Lukoil and Gazprom Neft are set to finalize the creation of a joint venture this week that will be an instrument for participating in new projects, according to Lukoil President Vagit Alekperov. Lukoil has agreed to take a minority stake in...

Checking In: TNK-BP Sketches Out Samotlor Rehab Program.
November 20, 2006... Against a background of mounting official pressure, Russian-UK venture TNK-BP announced a plan to stabilize crude output at its giant Samotlor field in West Siberia and to improve its environmental standards. The field's rehabilitation...

Northern Exposure: Lukoil Is Still To Decide On Kharyaga.
November 20, 2006... Lukoil has not yet taken a decision on whether it will exercise its option to take a 20% stake in the Kharyaga oil project in the Timan-Pechora oil province of northern Russia that is operated by France's Total. According to Lukoil's First...

Adding Up: Court Adds New Tax Claims To Yukos Debt.
November 20, 2006... Even as the Moscow Arbitration Court continues to add debts to bankrupt oil company Yukos, a leaked appraisal ordered by Yukos' external receiver has valued key production units at the low end of market prices. The Moscow Arbitration...

Southern Fling: Russia, Vietnam Cement Energy Ties.
November 20, 2006... Energy cooperation topped the agenda of this week's talks between President Vladimir Putin and his Vietnamese counterpart, Nguyen Minh Triet, who signed an accord to expand the countries' collaboration in oil and gas. The accord envisages...

Kazakhstan: Chinese Run Into Opposition Over Karazhanbas Deal.
November 20, 2006... China's state investment giant Citic is expected to put up a hard fight to win Kazakh oil and gas producer Karazhanbasmunai after the oil minister of Kazakhstan vowed to block the sale of the asset by Canada's Nations Energy, sources close to...

Ukraine: Ukrnafta Interested In Upstream Nigeria.(Brief article)
November 20, 2006... Oil company Ukranafta has decided to create a subsidiary in Nigeria focused on upstream assets, according to reports from a recent company shareholder meeting. Ukrnafta did not provide any further details on the plan, but analysts present...

Kazakhstan: TNK-BP To Rail Light Crude To Kazakhstan, China.
November 20, 2006... TNK-BP is holding active discussions with customers in Kazakhstan and China who are interested in purchasing the Russian-UK joint venture's light crude from West Siberia, according to Tony Considine, TNK-BP's executive vice president for...

Kazakhstan: Spanish Sign Into Caspian Block.
November 20, 2006... Spain's Repsol YPF has signed up for a 25% share of the Zhambai exploration project in the Caspian Sea, along with partners state oil company Kazmunaigas (50%) and Russia's Lukoil (25%), according to Lukoil. "The agreement was signed a...

Poland: PGNiG Forges Gas Deal With RosUkrEnergo.
November 20, 2006... Poland's state gas group PGNiG said it has signed a three-year deal to buy 2.5 Bcm/yr of natural gas from Russian-Ukrainian gas trader RosUkrEnergo, in a move that strengthens Poland's energy dependence on Russia despite calls for...

Sign O' The Times: Rosneft Winds Up Landmark 2001 Eurobond.
November 20, 2006... Russian state-run Rosneft has announced that it has completely repaid a five-year, $150 million eurobond taken out in November 2001 at interest rates that look punitive by today's standards. The sum also looks like kopecks next to the...

Chipping In: BP To Pay Part Of TNK-BP Back-Tax Bill.
November 20, 2006... BP will take part in paying TNK-BP's back-tax bill for 2002 and 2003, which the UK-Russian company had recently settled with the Russian tax authorities for an undisclosed sum believed to be almost $1.5 billion, according to reports. ...

Equities and Currencies.
November 20, 2006... Share Prices Closing On November 20, 2006

Crude Oil: Urals Differentials Soften With Demand.
November 20, 2006... The January Brent crude oil futures contract took over as front month on Nov. 16, trading up to a high of $61.37 before market bears the next day reasserted their dominance and pulled it back down to $57.85, the week's low. On Nov. 21 prices...

Products: Gas Oil Finds Support From Crude.
November 20, 2006... European middle distillate products prices were mixed through the week with gas oil showing strength after recording heavy losses along with crude futures at the end of last week. Fuel oil showed continued weak demand. Gas oil prices in...

Thanksgiving.
November 20, 2006... Nefte Compass is published one day early this week because of the US Thanksgiving holiday. The next issue will be published on Nov. 30.

New Wave: Surging East Siberian Production Could Create New Benchmark.
November 27, 2006... A wave of new crude production from East Siberia will improve Russia's overall crude stock and could create a new Russian benchmark grade that is sweeter though heavier than Siberian Light. The surge is being borne along by tax breaks and the...

Old Alliance: Gazprom, Rosneft Forge Wide-Ranging Alliance.
November 27, 2006... A new Russian alliance by state-controlled heavyweights Gazprom and Rosneft could lay the ground for a peaceful division of Russia's strategic energy assets between the two old foes, leaving only a few crumbs for private Russian companies like...

Fair Play: BP Pledges To Play By Moscow Rules.
November 27, 2006... BP has indicated that it is ready to play by Moscow's rules, as Russia seeks to gain access to international markets and maintain strategic control over natural resources at home. "We've learnt a of the importance of oil and gas to...

Heavy Mettle: Tatneft Refinery Plan Takes Shape.
November 27, 2006... Plans to build the first major new refinery on Russian soil since the Soviet era have begun to take shape. Oil company Tatneft said Russian state crude and products pipeline monopolies Transneft and Transnefteproduct and the Russian Railways...

Ouch!: Platts' Headache Grows As Russian Traders Rebel.
November 27, 2006... BP's huge appetite for high-sulfur fuel oil has caused an even bigger headache for Platts, which has found its dominant position among pricing agencies challenged by a mini rebellion by many of Europe's largest traders. The problems...

Winter Sail: Moscow To Boost Seaborne Crude Exports.
November 27, 2006... With a significantly lower tax on Russian crude exports on the horizon, the country's oil producers appear to be chomping at the bit to start sending more oil for export, and state pipeline monopoly Transneft is obliging. Defying the onset of...

Get On Up: Rosneft Steps Up Sakhalin-1 Exports.
November 27, 2006... Exports from the Exxon Mobil-led Sakhalin-1 development on Russia's Pacific shelf are gathering momentum. Russian state Rosneft's first cargo set sail from the De Kastri terminal earlier this month and the second is now loading. Rosneft is...

Probe Over: State Watchdog Winds Up Sakhalin Investigation.
November 27, 2006... A full probe into the Royal Dutch Shell-led Sakhalin-2 project on Russia's Pacific shelf was completed this week, according to the Russian Natural Resources Ministry's environmental oversight board, Rosprirodnadzor. The oversight board put...

Parma Can: Gazprom Eyes Italy, Sets Record European Price.
November 27, 2006... With an eye on gaining direct access to European gas consumers, Gazprom has signed an accord that could potentially lead to a joint venture with small Italian distributor Gas Plus. The memorandum of understanding, which was signed in July...