NEFTE Compass articles from September 2007

NEFTE Compass archives from September 2007

Sakahlin-2 Project Moves Foward With Gazprom.
September 5, 2007... In the five months since taking a majority stake in the huge Sakhalin-2 development on Russia's Pacific shelf, Gazprom has "facilitated relations" with the state, according to members of the Sakhalin Energy consortium developing the project....

TNK-BP 's Dudley Looks Beyond Russia.
September 5, 2007... TNK-BP is looking to expand abroad for the first time, using experience gained from rehabilitating mature Russian fields to win similar business in other former Soviet countries where it has a "distinct competitive advantage," says the...

Kovykta Development Plan Delayed.
September 5, 2007... Russian state Gazprom has delayed for a month the presentation of its development plan to the Ministry of Natural Resources for the massive Far Eastern Kovykta gas field, while Russian Natural Resources Minister Yuri Trutnev seems to have...

Belarus Bypass Pipe Approved.
September 5, 2007... The plan to build the Baltic Pipeline System-2 (BPS-2) from the Belarus border to the Russian Baltic Sea port of Primorsk has received a green light from the state experts' analysis. This makes it possible for the government to take a...

Sakhalin Gas To Go To Domestic Market.
September 5, 2007... Gazprom said this week that it plans to ship all of the natural gas developed in the various projects surrounding the Pacific island of Sakhalin via pipeline to the Russian mainland, where it would largely be used to meet growing domestic...

Rosneft Wants Offshore Project Tax Allowances.
September 5, 2007... Russia's current tax regime threatens to snub any future developments of the huge offshore oil and gas deposits surrounding the Pacific island of Sakhalin, according to Vadim Rudanets, the head of Rosneft and BP's joint venture, Elvary...

Sovcomflot Completes Baltimax Fleet.
September 5, 2007... State shipping firm Sovcomflot has received the second of its designated Baltimax tankers from South Korean shipping yards, and both should move into operation before the end of the year, Sovcomflot Chief Operating Officer Sergei Popravko said...

Sakhalin-1 Moves On With Odoptu Field.
September 5, 2007... The Exxon Mobil-led Sakhalin-1 project on Russia's Pacific shelf is preparing to move forward with the development of the Odoptu field, whose resources are key to keeping output at the project from falling from its current peak production of...

Lukoil Resumes Regular Supplies To Germany.
September 5, 2007... Russian oil major Lukoil resumed crude pipeline supplies to Germany in August at regular levels after significant cuts in the previous two months due to price disagreements with trader Sunimex. Lukoil pumped 123,000 b/d to Germany in August...

Lukoil Is Concerned With Increased State Role.
September 5, 2007... Lukoil President Vagit Alekperov expressed his concern last week with the increased role of the state-controlled companies in Russia. He believes, however, that partnerships with them could be "comfortable." "We don't want the division...

Chevron Is Urged To Turn Over Yukos Documents.
September 5, 2007... A US federal judge has ordered Chevron to provide the defense team for former Yukos Chief Executive Mikhail Khodorkovsky with information collected about the now-defunct Russian company when Chevron was considering purchasing a stake in Yukos...

Gazprom Strikes Gas Offshore Vietnam.
September 5, 2007... Gazprom's joint venture with Vietnamese state Petrovietnam -- Vietgazprom -- has struck gas offshore Vietnam, the Russian company said in a statement. Vietgazprom's first exploration well on Block 112 at the Bao Vang acreage in the...

Ministry To Propose Larger Fines For Flaring.(Russian Ministry of Natural Resources)(Brief article)
September 5, 2007... The Russian Ministry of Natural Resources has begun drafting proposals to increase penalties for flaring associated gas from as early as next year, as the World Bank has named Russia as the world's biggest associated gas flaring offender. ...

Agip KCO Threatens To Demobilize Kashagan.
September 5, 2007... Agip KCO, the beleaguered Eni-led consortium developing the troubled Kashagan oil field in Kazakhstan, said that it might have to demobilize parts of the project, which would have a huge impact on the local economy, suppliers and employees. ...

ZMB Causes Mol Concerns.(Zapadno Malobalykskoye)(MOL Rt)(Mikhail Gutseriev-oilgarch)
September 5, 2007... Hungarian Mol's worries over the vulnerability of its 50% share in the 50,000 b/d Zapadno Malobalykskoye (ZMB) West Siberian producer have cast a shadow on the joy that came with Czech state electricity company CEZ's surprising agreement late...

Turkmen-China Gas Pipeline Launched.
September 5, 2007... Construction of a new pipeline to bring gas from Turkmenistan to energy-starved China was launched last week with a symbolic weld at the first juncture made by Turkmen President Gurbanguly Berdimuhammedov. The pipeline, which will run...

Lukoil Teams Up With Conoco For Turkmen Shelf.
September 5, 2007... Lukoil revealed last week that it plans to work with its strategic ally, ConocoPhillips, to develop three blocks the Russian oil major has been eyeing in the Turkmen sector of the Caspian Sea. "Together with ConocoPhillips, we are holding...

Moscow Prepares CPC Charter Changes.
September 5, 2007... Moscow is getting ready for the upcoming extraordinary shareholders meeting of the Caspian Pipeline Consortium (CPC) in September, which is to vote on the crucial issues of its debt restructuring and charter amendments. Russia's deputy...

Mazeikiu Nafta Plans New Crude Pipeline.
September 5, 2007... Lithuanian refinery Mazeikiu Nafta (MN) plans to construct a crude oil pipeline linking the plant to the nearby port of Klaipeda in the hopes that the line will improve the economics of importing crude by sea, which MN has had to do since...

TNK-BP First Half Profits Fall Sharply.(Financial report)
September 5, 2007... Russian-UK joint venture TNK-BP International -- the parent structure for all the joint venture's assets including the publicly traded TNK-BP Holding -- reported a 30% drop in net income for the first half of 2007 versus the first half of 2006...

Rosneft Plans To Issue Ruble Bonds.
September 5, 2007... Rosneft plans to issue bonds worth 45 billion rubles ($1.8 billion) to help refinance its debt. The bonds will be issued in three equal tranches, with the first one to be placed by the end of the year and the next two rounds in 2008,...

Equities and Currencies.
September 5, 2007... Share Prices Closing On September 4, 2007

Inventory Figures Support Crude Gains.
September 5, 2007... Crude futures have strengthened over the week, with bullish inventory figures supporting gains. The US Energy Information Administration reported gasoline stocks at a record low of 20 days for the week ending Aug. 24, and with the addition of...

Gasoline Strength Supports European Products.(Brief article)
September 5, 2007... The strength of gasoline prices on the back of low US inventory stocks has supported European product prices during the week, and the gas oil contango in the first four months flipped to backwardation as concerns grew over stock levels in...

Election Bandwagon Starts Rolling As Putin Picks Successor.
September 12, 2007... Russian President Vladimir Putin has proved once again to be a master of surprise: Nobody could have predicted that Viktor Zubkov, head of the Federal Service for Financial Monitoring, would be named as the candidate to become Russia's new...

Rosneft Spearheads Russian Debut In Western Europe.
September 12, 2007... Russia's biggest oil producer, Rosneft, is poised to become the first Russian company to break into the Western European downstream sector by lining up a stake in a German refinery in an asset swap with Royal Dutch Shell, sources close to the...

Norwegians' Shtokman Chances May Be Teetering.
September 12, 2007... In a move that may bode poorly for Norwegian oil firms Statoil and Norsk Hydro's hopes of getting into Gazprom's massive Shtokman gas and condensate field in the Barents Sea, the Russian state behemoth has opened direct negotiations with...

Gazprom Keen On Sintez Fields.
September 12, 2007... Representatives from private Russian exploration firm Sintez told Nefte Compass this week that Gazprom has shown interest in its offer of partnership in developing two potentially huge Barents Sea fields. Sintez, which earlier this year...

China Supplies Under Threat.
September 12, 2007... Rosneft has threatened not to renew its current crude oil supply contract with China National Petroleum Corp. (CNPC) and may stop supplying China altogether as it diverts more crude to its own refineries. In addition, construction of a spur to...

Russia Approves East Siberia Gas Plan.
September 12, 2007... The Russian government has finally approved its long-term plan to develop and sell the country's East Siberia and Far East gas reserves. The plan, which will be coordinated by state Gazprom, gives domestic consumers priority access to the new...

Lukoil Builds Up Asian Ties.
September 12, 2007... The two deals signed by Lukoil last week in Indonesia and China could involve asset swaps and result in a reshuffle of Lukoil's upstream portfolio in the Caspian and Central Asia. The Russian major and state China National Petroleum Corp...

Gazprom And TNK-BP Postpone Kovykta Deal.
September 12, 2007... Gazprom and TNK-BP have agreed to postpone a deal on Gazprom's purchase of a majority stake in the huge Kovykta gas and condensate field in East Siberia from the Russia-UK joint venture until Dec. 1, according to official statements this week....

Russian Offshore Reserves To Grow.
September 12, 2007... Russia expects an increase in its offshore reserves of 426 Bcm of natural gas but a mere 3 million metric tons of crude in the year 2007, according to Aleksei Varlamov Russia's deputy minister of natural resources. Russia believes that its...

Salym On Target For 4 Million Tons.(Brief article)
September 12, 2007... Production from the Royal Dutch Shell-run Salym Petroleum Development in West Siberia is on target to reach 4 million metric tons (80,000 b/d) in 2007, meeting the requirements of the development and taxation program set by the Russian...

Gazprom To Announce Baltic LNG Partner.
September 12, 2007... Gazprom will announce a potential partner in its proposed Baltic LNG project on Sep. 25, Gazprom Deputy Chairman Valery Golubev was quoted as saying this week. It was suggested initially that the shortlist would be announced at the end of...

Vietnam Eyes Venture In Russia.
September 12, 2007... State oil firm Zarubezhneft and Vietnam's Petrovietnam are planning a joint venture focused on Russian upstream projects, according to Zarubezhneft's head of offshore development, Rinat Murzin. The venture will be based on a partnership...

Lukoil To Restart Odessa Refinery.
September 12, 2007... Lukoil expects to reopen its Odessa refinery in Ukraine late next month after shutting the plant in for more than two years to improve its refining depth and yield of light products. According to Lukoil President Vagit Alekperov,...

Slavneft Production To Decline For Another Year.
September 12, 2007... Production decline at Slavneft, a joint venture between TNK-BP and Gazprom Neft, will continue for at least another year before it can be turned around, according to Robert Dudley, TNK-BP's president and chief executive. Slavneft's owners...

Billions Needed For Kamchatka Development.(Rosneft)(Brief article)
September 12, 2007... Rosneft plans to invest some $270 million-$300 million next year to drill the first two wells on the West Kamchatka Block in Russia's Sea of Okhotsk. According to Rosneft's president, Sergei Bogdanchikov, total investment for the...

Integra Buys Well Workover Company.(Brief article)
September 12, 2007... Russian oil-field services company Integra has formed an agreement to purchase well workover services provider Obnefteremont for a yet-to-be disclosed price, as the London-listed independent continues building its presence in Russia's services...

Sintez Continues Seek Expansion Outside Russia.
September 12, 2007... Russian private player Sintez has opened an office in Libya, signaling that it is likely to participate in upcoming tenders for 12 prospective gas areas there. The company, which has focused on offshore exploration projects elsewhere, said...

Druzhba Violations Fixes To Take Over A Year.(Brief article)
September 12, 2007... Russia's industrial standards oversight board, Rostechnadzor, has said it would likely take Russian pipeline monopoly Transneft a year and a half to meet the ecological, safety and technical requirements needed to repair the damage that has...

Pressure Grows On Kashagan Operator.
September 12, 2007... Talks to resolve the crisis over Kazakhstan's troubled Kashagan project reached a critical phase this week with the visit to Astana of Paolo Scaroni, chief executive of Italy's Eni, which leads the consortium developing the supergiant oil...

Belarus To Develop Iranian Field.(partnership of Belorusneft and Petroiran)(Brief article)
September 12, 2007... Belarusian Belorusneft and Iranian state Petroiran have signed an agreement to jointly develop the Jofeir oil field in southwest Iran, as political spats with neighboring Russia have Belarus seeking to diversify supplies. The first phase...

EU Appoints Nabucco Coordinator.
September 12, 2007... The European Commission has appointed Former Dutch Foreign Minister Jozias van Aartsen as the first EU coordinator to the Nabucco gas pipe project between Turkey and Austria via Romania, Bulgaria and Hungary. The commission said the...

Karachaganak's Phase 3 Decision Months Away.
September 12, 2007... The joint operators of Kazakhstan's giant Karachaganak gas field -- Italy's Eni and BG of the UK -- are just months away from sanctioning a project that by 2012 would see production from the field double to more than 16 Bcm of gas and 20...

Total In Talks On Azeri Gas.(State Oil Company of the Azerbaijan Republic)(Brief article)
September 12, 2007... Azerbaijan's state oil company Socar has started talks with French major Total on developing the vast reserves of natural gas that lie beneath the BP-operated Azeri-Chirag-Guneshli (ACG) oil field in the Caspian Sea, according to press reports...

Chevron Pushing Ahead With Tengiz Project.
September 12, 2007... The Chevron-operated Tengizchevroil (TCO) joint venture is pushing ahead with a multibillion-dollar second-generation project (SGP) at Kazakhstan's huge Tengiz oil field, which next year will see production ramp up from current levels of around...

Turkmen President Promises Market Reforms.(Brief article)
September 12, 2007... Turkmenistan's president has pledged to introduce market reforms to attract more foreign investment and speed up economic growth, according to press reports from the region. "We need an absolutely different pace of growth if we want to...

Gazprom Ups Gas Supply To Turkey.
September 12, 2007... Gazprom has agreed to increase natural gas supplies to Turkey to compensate for a shortfall caused by a blast on the Iran-Turkey gas pipeline over the weekend. The Russian state gas group said Sep. 10 that it would increase gas shipments...

Lukoil's Second-Quarter Profits Hit Record.(Financial report)
September 12, 2007... Top independent Russian producer Lukoil announced this week that profits during the second quarter of the year jumped to a record $2.517 billion, up 8.4% from the same period of 2006, despite what the company called a "less favorable price...

Bashneft Approves Dividend Payout.
September 12, 2007... An extraordinary shareholders meeting of embattled Russian oil firm Bashneft has approved a dividend payout of 3.34 billion rubles ($131 million) for the first six months of 2007. The dividend payment, which will be doled out by the end of...

Equities and Currencies.
September 12, 2007... Share Prices Closing On September 11, 2007

Strong Crudes Hit Margins.
September 12, 2007... Crude futures continued to strengthen, despite Opec's decision to increase production by 500,000 b/d from Nov. 1. The increase effectively legitimizes about 1 million b/d of overproduction while adding another 500,000 b/d to total output....

Gas Oil Firm on Rising Demand, Low Stocks.
September 12, 2007... The backwardation in European middle distillates -- with prompt prices higher than later ones -- has increased quickly after flipping from contango last week, and traders continue to be bullish about rising demand because of low stock levels....

Kazmunaigas Sets Its Sights On Key Kashagan Role.(KazMunaiGas)
September 19, 2007... Kazakhstan's state oil company, Kazmunaigas (KMG), is gearing up for its greatest challenge yet -- to become joint operator of the hugely delayed and over-budget Kashagan field (NC Sep.13,p8). KMG's joint leadership of the giant Kashagan...

Chinese Put Lukoil On The Spot Over Sudan.
September 19, 2007... Russian major Lukoil is facing some difficult decisions over its ambitious plans to expand overseas, particularly in politically controversial countries such as Sudan and possibly Cuba, as well as Venezuela. Given that opportunities are...

Kara Sea Could Harbor More Gas Than Barents.
September 19, 2007... If you thought there was a lot of gas in the Barents Sea, home to the estimated 3.7 trillion cubic meters (130 trillion cubic feet) Shtokmanovskoye field, among others, wait until you see the Arctic Kara Sea just to the east. That's the message...

Russia Ups Crude Exports.
September 19, 2007... With winter on the horizon, Russia plans to crank up overall shipments along the Druzhba pipeline in the last three months of the year to fulfill a scheduled boost in crude oil exports of more than 50,000 b/d from the third quarter. Meanwhile,...

Rosneft Amends Tuapse Upgrade Plans.
September 19, 2007... State oil firm Rosneft has adjusted its plans to upgrade the Tuapse refinery on the Black Sea to allow the plant to continue to put out heavy refined products, which the company believes have begun offering better netbacks than previously...

Rosneft Opposes China Pipe Spur.
September 19, 2007... Russian state-controlled Rosneft reiterated this week its opposition to a plan to build a spur to China from the East Siberia Pacific Ocean (Espo) oil pipeline any time soon, and said it had made its position clear to the government. The...

Belarus Secures Russian Crude Supplies.
September 19, 2007... After months of insecurity about the future of Russian crude flows, Belarusian subsidies for oil supplies appear to be luring Russian firms back to the smaller country's two refineries. Several Russian oil firms have reportedly signed on to use...

Russneft's New Board Is Elected.
September 19, 2007... In a sign that Russia's biggest independent oil producer Russneft has new owners, the company's extraordinary shareholders meeting elected a new board of directors on Sep. 19. Former first vice president of Sibneft, Alexander Korsik, has...

Gazprom To Present Kovykta Plan By Year-End.
September 19, 2007... Gazprom will present its development plan for the huge Kovykta gas and condensate field in East Siberia by year-end, according to a statement from the state gas group this week. The issue was on the agenda of a meeting between Russian...

Transneft, Zarubezhneft Support Petersburg Bourse.(Brief article)
September 19, 2007... Russian state pipeline monopoly Transneft and state oil firm Zarubezhneft will reportedly form the basis of Russia's planned oil and refined products exchange in St. Petersburg, which is aimed at bringing clarity to the pricing of Russian...

Zarubezhneft Pushes State Offshore Company.
September 19, 2007... Nikolai Tokarev, director-general of Russian state Zarubezhneft has formally submitted a proposal asking the government to form a new state company responsible for exploration and production on Russia's offshore shelves, according to Russian...

Iberdrola Emerges As Baltic LNG Contender.
September 19, 2007... Spain's largest power group, Iberdrola, has reportedly emerged as a contender for Gazprom's proposed Baltic LNG project near St. Petersburg. According to the Spanish media reports this week, a final decision may follow Prime Minister Jose...

Imperial And Russian Region Form Gas JV.(Brief article)
September 19, 2007... London-listed independent Imperial Energy has created a joint venture with Russia's Tomsk regional government designed to deliver natural gas to buyers in the Tomsk region. Imperial -- which is trying to cozy up to Russian authorities after...

Gazprom Neft Wins Two Fields In East Siberia.
September 19, 2007... Gazprom Neft, the oil arm of state-controlled Gazprom has won an auction for two East Siberian exploration and production licenses in the little developed Irkutsk region, the company announced, as it seeks to build its East Siberian portfolio....

Turkmens Freeze Ukraine Gas Price.
September 19, 2007... Ukraine's leaders appear to have dodged another gas price bullet, after Turkmenistan, Central Asia's main gas producer, reportedly agreed to freeze prices for another year, easing concerns that an increase could have had a knock-on effect on...

CPC Approves Transneft Proposals.
September 19, 2007... Shareholders in the Caspian Pipeline Consortium (CPC), which mainly delivers Kazakh crude to the Russian Black Sea, have agreed to adopt Russian Pipeline monopoly Transneft's proposals to increase pipeline tariffs and reduce costs in the hope...

Kazakhstan Launches Biofuel Challenge.
September 19, 2007... Kazakhstan is launching a bid to become one of the world's leading producers and exporters of biofuel. Targeting the European Union, where member states are aiming to achieve 5.75% biofuel usage of all consumed traffic fuel by 2010,...

Azerbaijan Seeks Higher Gas Prices For Georgia.
September 19, 2007... Azerbaijan is reportedly seeking a price increase in talks with Georgia to agree terms for natural gas supplies next year. The Azeri side is seeking a price of $180/Mcm next year, up 50% from the $120/Mcm Baku is charging Tbilisi this year,...

Turkmen Boost Lifts Burrent Profits.(Brief article)
September 19, 2007... UK-listed Burren Energy saw first-half net profits drop 5% to $132.8 million, hurt by lower prices and higher noncash charges. But it said its working interest production increased 11% to 36,800 b/d and it secured a $500 million loan to finance...

Gazprom Advances With Direct Sales In Europe.
September 19, 2007... Gazprom is advancing with its plan to increase direct natural gas sales to European consumers having signed a contract with Italian municipal power company Enia. Under a yearlong accord signed by Austrian-based CEA Centrex Energy and Gas,...

Gazprom Plans Armenian Gas And Power Investment.
September 19, 2007... Gazprom has announced its intention to invest $190 million in Armenian gas and power projects this year, in a bid to build up its presence in the strategically important Caucasus region. Armrosgazprom -- a joint venture owned 45% each by...

Dragon Profits Jump On Production Growth.(Financial report)(Brief article)
September 19, 2007... Turkmenistan-based independent oil producer Dragon Oil announced this week that net profits jumped to $114.9 million during the first six months of the year, up 42% from $80.8 million in the first half of 2006 and above analysts' estimates. ...

Rosneft Gets Loan From Subsidiary.
September 19, 2007... Cash-strapped state major Rosneft plans to take out a nearly 5 billion ruble ($197 million) loan from its subsidiary the Angarsk refinery at a 0% interest rate and use the funds to invest in other developments, according to Rosneft officials....

Gazprom Neft Raises $2.2 Billion Loan.
September 19, 2007... Gazprom Neft, the oil arm of Russian state-run gas company Gazprom will take out a syndicated loan of $2.2 billion to develop extraction and processing, the company announced in a statement. ABN Amro, Calyon, Citigroup and Commerzbank...

Equities and Currencies.
September 19, 2007... Share Prices Closing On September 18, 2007

Dated Brent Under Pressure, Urals Ease.
September 19, 2007... November ICE Brent futures traded in a $3.13 range from a $75.52 low on Sep. 17 to a $78.60 high on Sep. 19. The low was reached after screen traders took profits from recent gains while the recovery was triggered by macroeconomic interventions...

Demand Pushes Gas Oil To Record Highs.
September 19, 2007... Demand for gas oil in Europe pushed the benchmark ICE gas oil October futures to record highs from the start of the week onwards. It traded from a low of $686/ton on Sep. 17, hitting highs of $710/ton during trading on Sep. 18 and Sep. 19....

Putin Sets Out Vision For Russian Oil And Gas Sector.
September 26, 2007... In a further sign that Russian policy is set to continue along the path laid down by President Vladimir Putin after the presidential elections of March 2008, this week's cabinet reshuffle contained few changes. Only three ministers have been...

Belarus Shakes Up Products Exports System.
September 26, 2007... Belarus is overhauling its oil products exports system in an efficiency drive sparked by the ending of cheap Russian crude supplies earlier this year, industry sources tell Nefte Compass. From the end of this year, all exports of oil...