NEFTE Compass articles from September 2008

NEFTE Compass archives from September 2008

Russia May Cut Flows But Denies Political Motive.
September 3, 2008... In a move that would go down very badly in the West, Russia may make further cuts in oil shipments to Europe -- a trend that began last year with a reduction in flows via the Druzhba pipeline to Central and Eastern Europe. The cuts would...

Markets Get Taste Of New Russian Crude.
September 3, 2008... A new type of Russian light crude could be certified next year following commercial production start-up at the South Khylchuyu field in the Timan-Pechora oil province in northern Russia and the launch of the Arctic export infrastructure created...

Conoco Is In Russia For The Long Haul.
September 3, 2008... ConocoPhillips is in Russia for the long haul and is looking for ways to expand investment, despite the rapid deterioration in Moscow's relations with the West over the conflict in Georgia. The US major continues to seek projects on which...

Shtokman Under Scrutiny.
September 3, 2008... Russia's reliability as a business partner came under unprecedented scrutiny at last week's Offshore Northern Seas (ONS) conference, as state-run giant Gazprom begins honing its marketing strategy for the Shtokman development in the Barents...

Vankor Delay Implies Drop In Russian Output.
September 3, 2008... Russian state oil champion Rosneft has delayed the launch of its massive Vankor oil field in East Siberia until at least mid-2009, dealing another blow to Russia's hopes of showing positive oil production growth this year. Rosneft's vice...

Russian Producers Seek Further Tax Breaks.
September 3, 2008... Russian oil companies are seeking more tax breaks in order to stabilize production in the country. Lukoil's president, Vagit Alekperov, said that the oil industry needs investment of 400 billion rubles ($16 billion) next year for this...

Koreans May Have Kamchatka Stake Reduced.
September 3, 2008... Korea National Oil Corp. (KNOC) may have to reduce its stake in the West Kamchatka shelf project in order to keep the license for the acreage it explored together with Russian state-controlled Rosneft, according to the head of Russian subsoil...

Jogmec Signs Up For East Siberian Venture.(Basic Element holding Company)(Brief article)
September 3, 2008... Kremlin-friendly aluminum magnate Oleg Deripaska's Basic Element holding company has agreed to set up a joint venture with Japanese government agency Jogmec for oil and gas projects in East Siberia. Basic Element energy affiliate United...

FAS Presents Gas Pipe Access Proposal.
September 3, 2008... The Russian government will within a month consider a draft proposal on providing independent gas producers, including oil companies that produce gas, with nondiscriminatory access to Gazprom's gas pipeline network, according to the head of...

Rosneft To Launch East Siberian Refinery In 2013.
September 3, 2008... Rosneft plans to launch a new export-oriented refinery in Russia's Far East in 2013, according to media reports last week that cited the company's president, Sergei Bogdanchikov. The state-controlled oil major is planning a refinery on the...

Lopoukhovsky Block Fails To Attract Foreign Partners.
September 3, 2008... Russian state Gazprom Neft, the oil arm of gas giant Gazprom, has failed so far to attract foreign partners to develop the Lopukhovsky Block on the offshore Pacific Sakhalin shelf. Italy's Eni, Royal Dutch Shell, Norway's StatoilHydro and...

Crude Exports Bypassing The Transneft Pipeline System, August 2008.
September 3, 2008...  

Cheney Caucasus Visit Ignites Caspian Pipeline War.
September 3, 2008... This week's visit to Azerbaijan, Georgia and Ukraine by US Vice President Dick Cheney has intensified the battle between the US and Russia over control of future oil and gas pipeline routes from the Caspian. "Energy security is essential to us...

Turkmenistan Revamps Oil Sector Law.
September 3, 2008... Turkmenistan has introduced a new hydrocarbons law and reshuffled its oil and gas hierarchy in moves that could further open up the Caspian state's oil and gas riches to foreign investors. President Gurbanguly Berdimuhammedov said the new...

Ukrainian Government Collapses Again.(Brief article)
September 3, 2008... Political tensions have again brought the Ukrainian parliament to the brink of collapse, after President Viktor Yushchenko's Our Ukraine party withdrew from the ruling coalition with the bloc of Prime Minister Yulia Tymoshenko after she...

Lukoil Farms In GDF To Azeri Offshore.(Gaz de France)(Brief article)
September 3, 2008... In an effort to share its exploration risks in the Caspian Sea, Lukoil has decided to farm in Gaz de France (GDF) to its D-222/Yalama project offshore Azerbaijan. According to Lukoil Overseas, which is in charge of the Russian major's...

RWE, Kazakhs In Joint Study.(Brief article)
September 3, 2008... German energy giant RWE and Kazakhstan's State Assets Management Holding (Samruk) signed a memorandum of understanding on Sep. 3 during a visit to Astana by German President Horst Kohler. As a first step, RWE and Samruk plan jointly to...

Rosneft Profits Impress, Lukoil Disappoints.
September 3, 2008... After overtaking Lukoil to become Russia's No. 1 oil producer last year, state oil major Rosneft has eclipsed its independent domestic rival in profits, thanks to higher output and the integration of assets from now-defunct Yukos. ...

West Siberian Profits Soar As Integration Completes.
September 3, 2008... With the completion of Stockholm-listed West Siberian Resources' merger with Alliance Oil, the new vertically integrated West Siberian saw profits in the second quarter of the year jump nearly eightfold from the same period of 2007. West...

Equities and Currencies.
September 3, 2008... Share Prices Closing On September 2, 2008

Crude Bulls Take Another Beating.
September 3, 2008... Market bulls suffered a heavy mauling by the bears as front-month ICE Brent crude oil futures prices crashed by $14.12/bbl, or 12%, from an Aug. 28 high of $118.26 to a Sep. 2 low of $104.14. Prices tumbled in spite of outright war between...

Russian Diesel Prices Decline, German Interest Increases.
September 3, 2008... Summer diesel prices in Russia are in decline, with some refinery spot prices as much as 10% lower week-on-week. Russian crude export volumes were lower in August, suggesting some diversion to the domestic market. This would have increased...

Azerbaijan, Turkmenistan Tighten Ties In The Caspian.
September 10, 2008... Caspian producers Azerbaijan and Turkmenistan took another step toward full-scale rapprochement by co-hosting a conference this week in Baku on joint energy cooperation. But the litmus test of an enduring friendship between the Azeris and...

Questions Linger After TNK-BP Peace Pact.
September 10, 2008... The peace pact signed by BP and Russia's Alfa and Access Renova (AAR) to settle their bitter dispute over the TNK-BP joint venture has yielded more questions than answers. AAR triumphed in its immediate battle for managerial and operational...

FAS Targets Gazprom Pipeline Policy.
September 10, 2008... In what could be the first real showdown over Gazprom's willingness to provide independent producers with access to its gas pipeline network, Russia's Federal Antimonopoly Service (FAS) has accused the state-run giant of breaking antimonopoly...

New Tax Breaks Meet Resistance.
September 10, 2008... Russia's energy ministry is preparing a new package of tax initiatives to lower the burden on the country's oil industry in reaction to calls from oil producers, but the move is meeting resistance in the country's finance ministry. The...

Russia Starts Quality Bank Test.
September 10, 2008... Russia from Sep. 1 started testing the model for payments to be made or received by oil producers under the quality bank system, according to Deputy Energy Minister Stanislav Svetlitsky. The testing will last for six months, and after the...

Mounting Tensions Kill US Nuclear Deal.
September 10, 2008... While insisting that the White House hopes to avoid a new cold war with Russia, Bush administration officials this week said the US has begun reassessing its relations with the Kremlin and would not tolerate any future aggressive actions by...

China Pushes Russia Gas Pricing Talks.
September 10, 2008... State China National Petroleum Corp. (CNPC) has proposed accelerating talks with Russia on natural gas supplies, a senior official at the Chinese company said this week. "We propose speeding up Chinese-Russian commercial talks on natural...

Russia Pushes Closer Cooperation With Opec.
September 10, 2008... In his surprising debut as Russia's observer to Opec, Deputy Prime Minister Igor Sechin has proposed greater cooperation with the oil producer group. Sechin said Moscow will soon ink a memorandum of understanding on cooperation with Opec....

Russian Nobel Oil To Enter Myanmar.
September 10, 2008... Russian oil company Nobel Oil has inked a production sharing contract with Myanmar Oil and Gas Enterprise (MOGE) to jointly explore oil and gas in two onshore areas in Myanmar, state-run newspaper New Light of Myanmar reported Sep. 9. ...

Lukoil Moves Ahead With Nizhegorod Modernization.
September 10, 2008... Enjoying high refining margins inside the country, Russia's Lukoil is pushing ahead with modernization of its Nizhegorod plant. The oil major plans to invest $1.5 billion in the construction of a new primary processing unit at the refinery,...

Zarubezhneft Gets Approval To Enter Kharyaga.
September 10, 2008... Russia's energy ministry has approved state-controlled Zarubezhneft's bid to buy 20% of the Kharyaga oil field, operated under a production sharing agreement (PSA) by 50% owner French Total. Norway's StatoilHydro owns 40% and local Nenetskaya...

Rosneft Makes Offshore Discoveries.
September 10, 2008... Rosneft has unveiled the results of its summer exploration program, including finds in the Caspian Sea and offshore Sakhalin. The West-Rakushechnaya well drilled with Lukoil in the northern Caspian flowed at 440 b/d, according to Rosneft's...

Baltics Not Yet Pinched By Russia's New Products Terminal.
September 10, 2008... Three months after Russia opened its state-of-the-art oil products export terminal in Primorsk on the Gulf of Finland in a project aimed at decreasing dependence on Baltic outlets, these ports have yet to feel the pinch. While officials and...

Gazprom Neft Closes On Kazakh Deal.
September 10, 2008... Gazprom Neft is reportedly set to ink a cooperation agreement with state Kazmunaigas (KMG) covering upstream projects in Kazakhstan and Russia. The deal is Gazprom Neft's latest effort to break into Kazakhstan, where it hopes to buy 49% of...

Serbian Parliament Ratifies Russian Energy Deal.
September 10, 2008... Serbia's parliament has ratified an energy agreement with Russia clearing the way for Gazprom to take control of national refiner Naftna Industrija Srbije (NIS). The accord also envisages Serbia's inclusion in the South Stream gas pipeline...

Markets Continue Free Fall On Negative Newsflow.
September 10, 2008... A steady stream of negative news has hastened the exodus of investors from Russia, sending the country's stock markets tumbling to their lowest levels since the summer of 2006. Russian stocks tumbled on Tuesday, led by oil and gas names,...

Russia Targets Growth With Oil Wealth.(Brief article)
September 10, 2008... The Russian government is considering investing 40%-50% of the oil-fueled National Welfare Fund in equity markets alongside as much as 30% in the corporate bond market, Deputy Finance Minister Dmitry Pankin reportedly said this week. The move...

Equities and Currencies.
September 10, 2008... Share Prices Closing On September 9, 2008

More Pain For The Bulls.
September 10, 2008... Crude oil futures suffered through another decline, under pressure from a strengthening US dollar, a slight easing of geopolitical tensions, further evidence of demand erosion and persistently bearish market sentiment. Front-month October ICE...

Premiums Strengthen in Europe on US Troubles.
September 10, 2008... Product premiums have strengthened in Europe with the threat of US Gulf refineries taking their time to return after a succession of tropical storms, but hurricanes Gustav and Ike have failed to pull ICE gas oil futures back above the...

Shock On Wall Street Leaves Moscow Teetering.
September 17, 2008... Faced with a massive exodus of investors from Russia, President Dmitry Medvedev and Prime Minister Vladimir Putin have been thrust into the awkward role of the country's investment cheerleaders, insisting that the global financial crunch will...

Oman Agrees To Sell CPC Stake To Russia.
September 17, 2008... Oman has agreed to sell its 7% stake in the Caspian Pipeline Consortium (CPC) to the Russian government, already the biggest shareholder in the 660,000 barrel per day oil pipeline, which runs from Kazakhstan's giant Tengiz field to the Russian...

Changes Expected In Russian Exports.
September 17, 2008... Exports through the pipeline network of Russia's national operator, Transneft, have been plotted out at 51.155 million metric tons (4.076 million b/d) in October-December, practically on a par with the 51.141 million tons penciled in for the...

Kremlin Seeks Support Of Oligarchs.
September 17, 2008... The Kremlin is seeking the support of Russia's oligarchs for its foreign policy, in light of changes to the diplomatic climate following its recent military involvement in Georgia. Moscow admits that its image was damaged and that the country's...

Total, Gunvor And Vitol Win Rosneft Tender.
September 17, 2008... France's Total and traders Gunvor and Vitol emerged as winners of Rosneft's tender to export its crude in the next six months. Total is to lift up to 3 million metric tons (21.99 million bbl) of the state-controlled company's crude from the...

Moscow Says It Helped BP In Conflict.
September 17, 2008... The Russian government played a role in resolving the TNK-BP shareholder conflict and easing the pressure on BP, as the UK supermajor's departure from Russia would have run counter to Moscow's interests, First Deputy Prime Minister Igor...

Gazprom Advances With Italian Deal.
September 17, 2008... Gazprom this week moved a step closer toward its goal of increasing direct natural gas sales to European consumers, after the European Commission's merger panel approved the proposed joint takeover of Italian gas and electricity supplier Enia...

Gazprom Eyes Bigger German Stake.
September 17, 2008... In a move to widen access to the German retail gas market, Russian state Gazprom is planning a "slight increase" in its stake in eastern German gas supplier Verbundnetz Gas (VNG), Gazprom chief Alexei Miller was quoted as saying. Miller made an...

Rosneft Refinery Launches Euro-3 Diesel.
September 17, 2008... State oil major Rosneft said last week that its Kuibyshev refinery will start producing diesel that meets Euro-3 standards this month. The state-controlled major said it has finished building an additives unit that allows it to produce the...

Iran Eyes More Turkmen Gas To Meet Demand.
September 17, 2008... Iran plans to step up imports of natural gas from Turkmenistan to help meet rising domestic demand and ensure that it meets its export commitments to Turkey, a top Iranian gas official told Nefte Compass on the sidelines of an energy conference...

Kazakhs Mull New Terminal In Klaipeda.(Brief article)
September 17, 2008... Kazakh firms have reportedly suggested that Lithuania build a new private-sector oil terminal at Klaipeda, on the Baltic Sea, to provide more export outlets for Kazakh crude. The proposed terminal would have a capacity of 120,000 b/d and cost...

Saudis Wade Into Azeri-Turkmen Dispute.(Socar)(Azersun )
September 17, 2008... A privately owned Saudi company has waded into the long-running dispute over an oil field in the Caspian that is claimed by Azerbaijan and Turkmenistan and has proven recoverable reserves of up to 900 million bbl. According to industry...

Kazakhstan Boosts Production.(Brief article)
September 17, 2008... Natural gas production in Kazakhstan grew by 16% to 2.417 Bcm in August compared with a year earlier (NC Sep.20,p8). Output was up nearly 3% from July, chiefly because of increased production from the Karachaganak field operated jointly by BG...

US Ploys To Stem Russia May Backfire.
September 17, 2008... US diplomatic efforts to stimulate energy diversification in Europe may backfire, as they have irritated Berlin, while appearing puny in the context of Russia's influence over the region, its military presence in Georgia and this week's...

Gazprom To Spend More In Serbia.
September 17, 2008... Gazprom will reportedly have to pay more than the $1.3 billion already agreed if it wants to take control of Serbian refiner Naftna Industrija Srbije (NIS). Under a deal ratified by the Serbian parliament last week, Gazprom oil arm Gazprom...

Gazprom Helps Ukrainians Refinance Debt.
September 17, 2008... Gazprom may have agreed to help Ukraine's state Naftogaz Ukrainy refinance its debt, in an attempt to resolve the row over money owed by Kiev for past gas deliveries. The issue reportedly topped the agenda of a meeting in Germany last week...

PKN Orlen, Conoco Settle Czech Dispute.
September 17, 2008... Polish refiner PKN Orlen has reportedly settled a dispute with US major ConocoPhillips over the Benzina chain of filling stations in the Czech Republic. PKN Orlen reportedly agreed to give Conoco $100 million for the chain of around 100...

Lukoil Managers Snap Up Shares.
September 17, 2008... The top managers of leading private Russian oil producer Lukoil have taken advantage of the sharp drop in Russia's equity markets to increase their shareholding in the company. Chief Executive Vagit Alekperov and Vice President Leonid Fedun...

TNK-BP Clears Its Tax Debt.
September 17, 2008... TNK-BP has paid $900 million that TNK owed in taxes from 2001-03, before the Russian-UK venture was set up, the deputy head of an interior ministry investigation committee, Alexander Matveev, was quoted as saying. Slavneft handed over $42...

Rosneft Repays Huge Loan.
September 17, 2008... Top Russian producer Rosneft announced that is has repaid the third and final tranche of $2.3 billion from the $22 billion short-term credit that the company attracted early last year to finance its spending spree in the Yukos bankruptcy...

Equities and Currencies.
September 17, 2008... Share Prices Closing On September 16, 2008

Financial Tornado Blows Away Other Factors.
September 17, 2008... The bullish impact of back-to-back hurricanes hitting oil installations in the US Gulf, an escalating "oil war" between Nigerian rebels and the government resulting in the loss of some 550,000 b/d of production and BP shutting in some 470,000...

Financial Pressures, But Fundamentals Support.(Brief article)
September 17, 2008... With the world reeling from the turmoil in financial markets, flat prices have plunged across the board. The ICE gas oil front-month lost almost $50/ton week-on-week and futures went into contango on Sep. 15 as October took over as the...

Saudi Firm Stirs Troubled Waters In The Caspian.
September 24, 2008... A privately owned Saudi oil company co-founded by a son of King Abdullah of Saudi Arabia has joined forces with Azeri interests to pursue a potential 1 billion barrel Caspian Sea oil field claimed by both Azerbaijan and Turkmenistan, industry...

Gazprom Goes Latin As Moscow Pushes South American Ties.
September 24, 2008... In its latest push toward becoming a global player in the energy market, Gazprom has sealed two new agreements in the South American nations of Bolivia and Venezuela. But with little actual production to show for its efforts and doubtful...

Gazprom, Banker's Choice.
September 24, 2008... Despite global capital market crises, reports of Western capital flight from Moscow, and this week's US dollar weakness and oil price volatility, international banks remain content to lend to the "right" gas infrastructure and supply projects,...

Rosneft To Pay $9.1m Fine.
September 24, 2008... Russia's Federal Antimonopoly Service (FAS) has fined state oil major Rosneft for abusing its dominant position in the country's wholesale gasoline market. Rosneft gave privileges to an affiliate in buying oil products, thereby creating...

Tax Change To Prompt Wave Of Exports.
September 24, 2008... With concerns of an economic crisis riding high last week, the Russian government has taken the unprecedented step of lowering its crude oil export duties to bring production back into profitability and stave off a liquidity crisis. As a...

Dudley To Speak At Oil & Money Conference.(Conference news)
September 24, 2008... Robert Dudley, the embattled president and chief executive of TNK-BP, is to speak at the Oil & Money Conference sponsored by Energy Intelligence and the International Herald Tribune in London on Oct. 28-29. It will be one of Dudley's first...

Transneft Threatens CPC 'Bankruptcy'.
September 24, 2008... Russian state pipeline operator Transneft appears to be piling the pressure on BP over expansion of the Caspian Pipeline Consortium (CPC) pipeline, hinting that the consortium could go bankrupt unless all the shareholders agree to double the...

Novatek Develops Its Arctic Field.
September 24, 2008... Top independent Russian gas producer Novatek has launched the second phase of development at its Yurkharovskoye gas field, which has proven reserves of 312 Bcm of natural gas and 15 million metric tons of liquid hydrocarbons. The second...

Espo Gets Kremlin Support.
September 24, 2008... The Russian government says it may help state pipeline giant Transneft finance some projects -- primarily the massive East Siberian Pacific Ocean (Espo) crude oil pipeline -- amid the global financial crisis. "The government is still in...

Russian Firms Create A Consortium In Venezuela.
September 24, 2008... Russia's oil majors have agreed to create a consortium in a bid to unite efforts to develop large projects in Venezuela and other Latin American states, Russia's deputy prime minister in charge of the energy sector, Igor Sechin, was quoted as...

BASF Shifts E&P To Moscow.
September 24, 2008... BASF-owned Wintershall is moving its upstream head office from Germany to Moscow to reflect the growing importance of Russian output from its joint ventures with Gazprom, but said there will be no job losses. From Oct.1, Wintershall's Russian...

Dubai Scuttles Russia Power Investment.(World sovereign wealth fund)(OGK-1)(Brief article)
September 24, 2008... The massive Dubai World sovereign wealth fund has reportedly pulled out of a $5.34 billion deal to take over top Russian power producing firm OGK-1 because of deteriorating economic conditions in Russia. The Dubai wealth fund and its...

Shell Gets Top Operating Role In Kashagan.
September 24, 2008... Kazakh state oil and gas company Kazmunaigas (KMG) is to set up a joint venture with Royal Dutch Shell to manage oil production at the giant Kashagan field in the Caspian Sea, Kazakh Energy Minister Sauat Mynbayev said, according to a statement...

Auditors Complete Turkmen Study First Stage.
September 24, 2008... Turkmenistan's resolve to be open about its hydrocarbons reserves can now be put to the test. International petroleum consultancy Gaffney, Cline & Associates has just completed a reserves study of the giant Dauletabad gas field as the...

Kazakh Producer Increases Reserves.(Zhaikmunai)(Brief article)
September 24, 2008... A new study for Kazakh oil producer Zhaikmunai has increased its proven and probable (2P) reserves by a steep 35% year-on-year to 535 million boe as of July 2008. The independent reserves evaluation of its Chinarevskoye field in...

Kazmunaigas Raises Loan.
September 24, 2008... Kazmunaigas PKOP, a subsidiary of Kazakhstan's state Kazmunaigas (KMG), has attracted a $2.5 billion syndicated loan to help refinance its outstanding debt. The loan carries a three-year maturity and was raised at Libor plus 155 basis...

Ukrainian Politics Stalls Gas Supply Talks.
September 24, 2008... Mounting political turmoil in Ukraine has temporarily derailed negotiations over gas supplies with Russia's Gazprom, Prime Minister Yulia Tymoshenko said this week, suggesting Russian gas could be used as leverage in pushing for a more...

Armenia To Pay More For Russian Gas.
September 24, 2008... Armenia, the last former Soviet state that still gets subsidized Russian gas, will have to pay a lot more after inking a new gas supply contact with gas giant Gazprom. The accord, valid through 2015, envisages a gradual shift to European...

Markets Stabilize But Uncertainty Still Rules.(Brief article)
September 24, 2008... Although Russia's financial markets rebounded with a vengeance following encouraging signs of support from the government, they continue to lack solid investor confidence, leaving equities at the mercy of volatile global crude prices and...