FSU Energy articles from April 2004

FSU Energy archives from April 2004

Yukos awaits its fate: as the pressure continues to pile up on the Russian oil company, lenders have taken fright.(YUKOS Oil Co.)
April 30, 2004... Yukos is getting ready to contest the $3.5bn tax bill that this week prompted a syndicate of international banks to warn that the company is in danger of defaulting on a $1bn loan. The firm is ready to go into litigation on the issue,...

The great divide: next month's EU expansion will bring closer contact with Russia. But many differences remain.(Editorial)(Europea Union.)
April 30, 2004... The former Soviet bloc countries due to join the EU on 1 May have come a long way since the collapse of communism in the late 'eighties. But they bring with them the legacy of over 40 years of domination by Moscow. They remain--for the...

YukosSibneft divorce ruling postponed.(News)
April 30, 2004... The Moscow arbitration court has postponed Yukos' appeal against a ruling that declared a share issue used to effect its takeover of Sibneft illegal. Hearings have been shelved until 31 May. If the court eventually rules against...

New Sakhalin governor berates ExxonMobil.(News)
April 30, 2004... The governor of Sakhalin region has criticised the ExxonMobil-led Sakhalin I group over its lack of progress securing gas sale contracts in Japan and China. Ivan Malakhov--who was elected Sakhalin governor last December after former...

US-Russia dialogue snags on Sakhalin III.(Far east)
April 30, 2004... The future of ExxonMobil and ChevronTexaco's involvement in the Sakhalin III project has emerged as a key issue in the US-Russia Commercial Energy Dialogue (CED), Andrew Somers, chairman for the US side, told Argus in a recent interview. ...

Astana delays Caspian bids.(Kazakhstan)(Brief Article)
April 30, 2004... Kazakhstan has postponed a tender of new offshore oil and gas structures following investor concern about the country's new tax regime. "[Investors] have questions on the [new] tax conditions," says a source in Kazakh state-owned oil and...

Kazmunaigaz ups crude output.(Kazakhstan)(Brief Article)
April 30, 2004... Kazakh state-owned oil and gas company Kazmunaigaz produced 2.04mn t (165,000 b/d) of crude in the first quarter, up by around 7pc on the same period of 2003. The firm's gas output for the period was 218mn [m.sup.3]. Kazmunaigaz incorporates...

Kazakhstan, China may sign pipeline agreement.(Kazakhstan)
April 30, 2004... Kazakhstan and China could sign a framework agreement on 17-19 May on construction of a pipeline to link the two countries, according to a Kazakh government source. The pipeline is due to run from Atasu in central Kazakhstan to...

Loadings resume at Iran's Neka.(Exports and trade)
April 30, 2004... The Iranian port of Neka resumed tanker unloading operations at the start of this week, following a four-day delay. The hold-up was caused by bad weather, according to a source close to the port. But exporters and freight forwarding...

Duma delivers export duty hike.(News)
April 30, 2004... The Duma has rushed through changes to Russia's crude export duty, as part of wider tax changes designed to boost state revenues from higher oil prices. The export duty law was passed on 23 April in three readings. It was rubber-stamped...

More VLCCs head for Gdansk.(News)(Very Large Crude Carrier )
April 30, 2004... Russian Urals is increasingly being loaded on to VLCCs at the Polish port of Gdansk, improving the economics for long-haul shipments out of Europe. At least five VLCCs have been part-loaded at Gdansk since February, and later topped up...

Russia sets new output record.(Russia & CIS)(petroleum)(Brief Article)
April 30, 2004... Russia produced a record 8.92mn b/d of crude and gas condensate in the first quarter of the year, up by about 11pc on the same period of 2003. March output was 8.83mn b/d. The country's refineries received 4.38mn b/d of crude in the first...

Gazprom approves investment.(Russia & CIS)(Gazprom Russian Joint Stock Co.)(Brief Article)
April 30, 2004... Gazprom's board has approved its budget and the investment programme for 2005 and 2006. The company will invest about $8.7bn in 2005 and $9.1bn in 2006. Capital investments for 2004 are scheduled at $6.52bn, including more than $3.5bn for gas...

Irkutsk to sell Verkhnechonsk stake.(Russia & CIS)(TNK-BP)(Brief Article)
April 30, 2004... The Irkutsk regional administration in east Siberia is considering the sale of its 11.39pc stake in the Verkhnechon-skneftegaz oil and gas producer. Irkutsk's partner in the project, TNK-BP, may be interested in the stake, observers suggest....

China draws Russian fuel oil.(Russia & CIS)(Brief Article)
April 30, 2004... Increased demand from China for high-sulphur fuel oil has encouraged exports from the FSU to Asia-Pacific this month. Traders estimate that around 1.2mn t of fuel oil left Europe heading east during April. Huangpu terminal--where two-thirds...

TNK-BP plans Pivdenne export restart.(Russia & CIS)(Brief Article)
April 30, 2004... TNK-BP has asked the Ukrainian government for permission to resume crude exports through the Pivdenne terminal near Odessa, says a company source. Earlier, Russian firms suspended shipments following Moscow's decision to remove it from the...

Looking ahead.(Russia & CIS)(conference)(Calendar)
April 30, 2004... * OGU. 18-20 May. Uzbekistan. ITE. Tel: +44 20 7596 5166 * McCloskey's 2nd Annual Russian Coal Markets. 22-23 May, Moscow, Tel: +44 1730 26509 * Caspian Oil and Gas. 1-4 June. Baku. Caspian Events. Tel: +44 20 8546 6644 *...

Rosneft submits exploration requests.(Russia & CIS)(license)(Brief Article)
April 30, 2004... Rosneft has submitted 19 requests for new oil and gas exploration licences. These include 11 requests for areas close to the 1bn bl Vankor field in east Siberia, two for areas adjacent to the state-controlled firm's Purneftegaz production...

Vostok Nafta sues Sibneft subsidiary.(Russia & CIS)(Brief Article)
April 30, 2004... Bermuda-registered investment fund Vostok Nafta has filed a $100mn claim for restitution against Sibneft subsidiary Sibneft Oil Trade in the high court of the Virgin Islands. The move is part of Vostok Nafta's campaign against Slavneft and...

Ukraine to sell gas to Romania.(Russia & CIS)(Naftogaz Ukrainy)(Wintershall AG)(Brief Article)
April 30, 2004... Ukrainian state-owned oil and gas firm Naftohaz Ukrainy has signed a long-term agreement with German firm Wintershall's WIEE subsidiary or gas exports to Romania. Naftohaz Ukrainy will supply 1bn [m.sup.3]/yr of gas to Romania. This is the...

Azerbaijan to sign new PSAs.(Caspian/central Asia)(Brief Article)
April 30, 2004... Azeri state-owned oil company Socar plans to sign two production-sharing agreements (PSAs) for small onshore fields in June. One of these is likely to be with Turkish firm Enka for development of the Binagady block on the Apsheron peninsula....

Turkmenistan cuts crude exports.(Caspian/central Asia)(production)(Brief Article)(Illustration)
April 30, 2004... Turkmenistan produced 194,000 b/d 823,000t) of crude last month, up from 192,000 b/d in February. But the country's crude exports fell by around 46pc to 5,900 b/d in March, compared with 11,000 b/d in February, following a rise in production...

Azerbaijan to boost light product output.(Caspian/central Asia)(refineries )(Illustration)
April 30, 2004... Azerbaijan's Azneftyanadzhag and Azneftyag refineries in Baku produced 1.59mn t of products in the first quarter, 188,000t up on the same period of 2003. Petroleum product output in Azerbaijan '000t Mar 04 Feb 03...

Caspar gains control of Baku port.(Caspian/central Asia)(Brief Article)
April 30, 2004... Azeri shipping firm Caspar is planning to merge with the Baku international sea trading port, which incorporates the Dubendi oil terminal. "The government has already approved this initiative and the merger will begin shortly," says Caspar...

All eyes on Yukos.(Stock markets)(YUKOS Oil Co.)
April 30, 2004... The Russian stock market was dominated once again by bad news about Yukos. Oil stocks continued their downward correction over the week, dragging the benchmark RTS index with them, to close down 3.7pc at 670.53 points on 28 April. A...

Czechs approve PKN Unipetrol bid.(News)(PKN Orlen)
April 30, 2004... The Czech cabinet has approved a bid by Polish oil firm PKN Orlen for a 63pc state-owned stake in Czech down-stream company Unipetrol. PKN Orlen was the sole remaining bidder following the withdrawal of two other would-be buyers. But it...

Browne dismisses Russia worries.(News)
April 30, 2004... BP chief executive John Browne has highlighted the importance of TNK-BP to the major's overall growth, shrugging off concerns about Russia's investment climate and changing oil-sector tax regime. "It is clear that there will always be...

Crude pushes products higher.(Products market)(Brief Article)
April 30, 2004... * The continuing strength seen on futures markets in the US pulled up the price of Russian products in its wake, although the impact of crude gains on fuel oil was less obvious. * Premiums for Russian gasoil to IPE futures soared,...

Products prices.(Products market)(petroleum)(Illustration)
April 30, 2004... Products prices 28 Apr Baltic ports (fob) $/t Chg on 21 Apr Russian Gasoil 309.32 - 312.32 +14 M-100 (straight-run) 148.76 - 150.76 +6 M-100 (cracked)...

Freight rates.(Products market)(fuel oils)(Illustration)
April 30, 2004... Freight rates 28 Apr Rate WS ($/bl) Novorossiysk to Augusta (Italy) Clean products 30,000t 230 ...

Crude prices hit three-year high.(Crude market)(Brief Article)
April 30, 2004... * Crude prices surged to a three-year high for the second day running as weekly US government stock data showed a smaller-than-expected build in US gasoline inventories. Concerns over escalating Middle East tensions also underpinned the...

Crude prices.(Crude market)(Illustration)
April 30, 2004... Crude prices 28 Apr NW Europe $/bl Chg on 21 Apr diff to BFO BFO (dated) 34.80-34.86 +2.12 - Urals (cif) 31.60-31.66 +2.12 -3.20...

Freight rates (Capital Shipbrokers).(Crude market)(Illustration)
April 30, 2004... Freight rates (Capital Shipbrokers) 28 Apr Novorossiysk to Augusta (Italy) WS Rate ($/bl) Crude 130,000t 115 0.89 Crude 80,000t 150 1.17...

Russian scheduled rail exports, May 2004.(Russian rail exports)(crude oil)(Illustration)
April 30, 2004... Russian scheduled rail exports, May 2004 '000t Product Exporter Destination Volume Crude oil Angarsk refinery China 600.00 Kirishi refinery ...

Russian crude production, March 2004.(Russian oil production)(Illustration)
April 30, 2004... Russian crude production, March 2004 Mar '000t Vertically integrated oil companies 35,802.20...

Russian refinery output, March 2004.(Russian refinery output)(petroleum)(Illustration)
April 30, 2004... Russian refinery output, March 2004 '000t Crude Crude throughput throughput Mar...

Russian crude netbacks.(Netbacks)(exports and taxation)(Illustration)
April 30, 2004... Russian crude netbacks 28 Apr. Primorsk Butinge Novo- rossiysk Urals (cif-fit) ($/bl) 31.63 31.63 31.63...

OMV leads Petrom race: Romania has finally short-listed bidders for a 51pc controlling stake in state-owned oil firm Petrom.
April 23, 2004... The remaining bidders for Romania's state-owned Petrom are Austria's OMV, Hungary's Mol and US firm Occidental. OMV is widely seen as the front-runner and has submitted a binding offer to buy the first 33.4pc tranche outright and then...

Ghost at the feast: Mikhail Khodorkovsky may remain in prison in Moscow. But he was on everyone's mind in London this week.(Editorial)(Editorial)
April 23, 2004... The Russian Economic Forum in London this week offered a good example of how oil firms--both international and domestic--see fit to conduct themselves in the second phase of the Putin era (see p4). From an energy-sector perspective the...

Yukos reels from new blows.(News)
April 23, 2004... Yukos is attempting to limit the fallout from major downgrades of its credit rating by ratings agencies Standard & Poor's (S&P) and Moody's this week, which were prompted by renewed pressure from the Russian authorities. The company's...

Audit chamber calls for Kovykta development.(News)
April 23, 2004... TNK-BP appears to have found an unexpected supporter for its multibillion dollar project to develop the 1.9 trillion [m.sup.3] Kovykta gas field in eastern Siberia, in the shape of Russia's audit chamber. Following a recent investigation...

Majors fly flag for Russia.(News)
April 23, 2004... Leading western oil majors used this week's high-profile Russian Economic Forum in London to highlight the ever-increasing importance of Russia to their growth strategies. BP, Shell and ChevronTexaco all confirmed their hope of expanding...

Alekperov talks big.(Lukoil)(Vagit Alekperov)
April 23, 2004... Lukoil is increasingly preoccupied with extending its international reach. At a briefing this week attended by Argus, company president Vagit Alekperov and vice-president Leonid Fedun outlined the company's goals. The Russian giant is...

BP to start Shakh-Deniz production in 2006.(News)(British Petroleum Company PLC)
April 23, 2004... The BP-led Shakh-Deniz consortium will produce first gas from the offshore field on 1 October 2006. "All current project operations are being scheduled so as to make sure gas production begins on this date," said Shakh-Deniz president...

Mol-PKN merger breaks down, again.(News)
April 23, 2004... The planned merger of Hungarian oil and gas firm Mol with Poland's PKN Orlen ran into further trouble this week. Polish treasury minister Zbigniew Kaniewski has backtracked on plans to force a merger through before the government stands...

LukAgip deal delay.(News)(Brief Article)
April 23, 2004... Lukoil and Italian company Eni have delayed the sale of the latter's share in their LukAgip joint venture by two months in order to evaluate all possible options, according to Lukoil president Vagit Alekperov. The two companies are still in...

Russia adjusts 2Q export schedule.(Exports & trade)
April 23, 2004... The Russian government's soon-to-be-disbanded commission on access to export pipelines, the MVK, is poised to approve alterations to the April-June crude export schedule, a government source tells Argus. The adjustments will be made in...

New FSU crude export record.(Exports & trade)(Illustration)
April 23, 2004... Crude exports from the FSU hit record levels for the second month running in March, rising to a high of 5.5mn b/d. Exports were up by 7pc on the month, with the total 2004 figure up by more than 21pc on the same period of 2003. The...

Market falls on Yukos downgrade.(Stock markets)
April 23, 2004... Russia's RTS index fell back over the week, ending down by 5.8pc at 696 points from an intraday high of 744 on 16 April, and investor sentiment is turning bearish. A slew of negative news about Yukos and Sibneft, looks set to offset the high...

Odessa-Brody no-go.(Russia & CIS)(Odessa-Brody line)(Brief Article)
April 23, 2004... Plans to start shipping Caspian crude through Ukraine's Odessa-Brody line appear to be running out of stream. "We have failed to get a loan for buying crude to fill the line," says Serhiy Stogniy, the deputy general-director of pipeline...

Gazprom exports, Jan-March.(Russia & CIS)(Illustration)
April 23, 2004... Gazprom exports, Jan-March bn [m.sup.3] Jan-Mar 03 Jan-Mar 04 Total 39.2 42.0 Western Europe 26.6 28.86 Austria 1.5 ...

Lisichansk suspends operations.(Russia & CIS)(Brief Article)
April 23, 2004... TNK-BP's 320,000 b/d Lisichansk refinery in Ukraine is due to close for maintenance from 26 April to 4 May. Product output will be suspended but the refinery plans to resume full-scale production on 10-20 June. Crude deliveries to the...

Kashagan partners drill new well.(Caspian/central Asia)(Brief Article)
April 23, 2004... The Eni-led consortium developing the Kashagan block in the Kazakh sector of Caspian Sea has started drilling a second appraisal well at the Aktote structure. The group plans to finish the 4,861m well before the end of June. Last year, the...

Looking ahead.(petroleum industry events)(Calendar)
April 23, 2004... * OGU. 18-20 May. Uzbekistan. ITE. Tel: +44 20 7596 5166 * McCloskey's 2nd Annual Russian Coal Markets. 22-23 May, Moscow, Tel: +44 1730 26509 * Caspian Oil and Gas. 1-4 June. Baku. Caspian Events. Tel: +44 20 8546 6644 *...

Mazeikiai maintenance.(Baltics)(Brief Article)
April 23, 2004... Lithuania's 263,000 b/d Mazeikiai refinery, which is controlled by Yukos, has closed for maintenance from 21 April to 5 May. But there will be no impact on product deliveries as it has enough stocks to cover the shutdown. The refinery plans...

Shell denies Romania pull-out.(Central/eastern Europe)(Brief Article)
April 23, 2004... Shell has denied claims it is poised to pull out of Romania. Local media report claim the major is negotiating the sale of all its Romanian interests, including 58 service stations and lubricants and liquefied petroleum gas businesses, to an...

Diesel buyers turn to FSU gasoil.(Products market)(Brief Article)
April 23, 2004... * Product prices edged higher, propeed up by gains on crude futures and tight supplies due to a string of refinery turnarounds across Europe. * Premiums for Russian gasoil to the May IPE gasoil futures remained fairly strong, supported...

Products prices.(Products market)(Illustration)
April 23, 2004... Products prices 21 Apr Baltic ports (fob) $/t Chg on 14 Apr Russian Gasoil 295.12 - 298.12 nc M-100 (straight-run) 142.76 - 144.76 +3 M-100 (cracked) ...

Freight rates.(Products market)(Illustration)
April 23, 2004... Freight rates 21 Apr Rate WS ($/bl) Novorossiysk to Augusta (Italy) Clean products 30,000t 225 1.71 Fuel oil 30,000t...

Urals in doldrums in the north.(Crude market)(Brief Article)
April 23, 2004... * Oil prices slid after weekly US stock data showed crude inventory gains, albeit smaller than expected. June BFO slipped under $33/bl. Urals remained in the doldrums in northwest Europe but strengthened in the Mediterranea. * Urals in...

Crude prices.(Crude market)(Illustration)
April 23, 2004... Crude prices 21 Apr NW Europe $/bl Chg on 14 Apr diff to BFO BFO (dated) 32.68 - 32.74 0.23 - Urals (cif) 29.48 - 29.54 0.13 ...

Freight rates (Capital Shipbrokers).(Crude market)(Illustration)
April 23, 2004... Freight rates (Capital Shipbrokers) 21 Apr Novorossiysk to Augusta (Italy) WS Rate ($/bl) Crude 130,000t 140 1.09 Crude 80,000t 105 0.82 Crude 60,000t...

Russian crude production, February 2004.(Russian oil production)(Illustration)
April 23, 2004... Russian crude production, February 2004 Feb Feb % chg '000t '000 b/d Jan 04 Vertically integrated oil companies 33,261.20 ...

Russian refinery output, February 2004.(Russian refinery output)(Illustration)
April 23, 2004... Russian refinery output, February 2004 Crude Crude % chg Jan throughput throughput Company/refinery Feb Feb '000 b/d Total for...

Russian crude netbacks.(Netbacks)(Illustration)
April 23, 2004... Russian crude netbacks Primorsk Butinge Novo- rossiysk Urals (cif-fit) ($/bl) 29.51 29.51 ...

Kazakhstan calls Rosneft's bluff: Astana has refused Rosneft's calls for tax exemptions in the Kazakh sector of the Caspian. Compromise is needed.
April 16, 2004... The Kazakh government has rejected a request by Russia's state-owned Rosneft for tax exemptions at the offshore Kurmangazy project in the Caspian. The two sides agreed to develop the 7.3bn bl field--on the border of the Russian and the...

Tomorrow, and tomorrow ...: do President Putin's reforms herald the dawn of a new era? Or are they mere soundbites, signifying nothing?(Editorial)
April 16, 2004... Sceptics about the prospects for reform in Russia have had pause for thought in recent months. The country is now increasingly being portrayed and promoted as a serious place to do business. Consultants, lawyers and analysts have been...

Sakhalin II under attack.(News)
April 16, 2004... The Sakhalin II project came under tire this week when 15 Russian contractors published an open letter to President Vladimir Putin demanding that Russian prosecutors investigate the legality of the operation. The contractors claim that...

Yukos chief appeals to shareholders.(News)
April 16, 2004... Confusion surrounding the stalled demerger of Yukos and Sibneft has prompted Yukos chief executive Simon Kukes to write an open letter to his company's shareholders asking them to clarify their attitude towards the two firms' future. ...

Tax laws go before the Duma.(News)
April 16, 2004... Russia's government has submitted draft laws to the Duma aimed at increasing the tax burden on oil producers through higher crude export duties and a rise in the mineral extraction tax (FSUE, 26 March, p4). Under the proposed changes,...

Russian companies review their position in Iraq.(News)(Brief Article)
April 16, 2004... The recent spate of hostage-taking is prompting large firms operating in Iraq to begin evacuating their staff. But with US companies facing greater problems than their Russian counterparts, Russia could yet have a chance to strengthen its...

TNK-BP drafts long-term plans...(BP)
April 16, 2004... Russian-UK joint venture TNK-BP is drafting five-year and 20-year business plans, which represent the first example of long-term planning by private investors in Russia's oil industry since the collapse of Soviet Union. The company forecasts...

... But goes it alone.(TNK, BP negotiations)(Brief Article)
April 16, 2004... TNK-BP has suspended all talks with potential operating partners, pending the conclusion of its five-year business plan this autumn, say sources in the firm. And discussions held by TNK before its joint-venture deal with BP are unlikely...

BP confirms June 2005 start-up for BTC pipeline.(Brief Article)
April 16, 2004... Shareholders of the BP-led BTC consortium, which is building the 1mn b/d Baku-Tbilisi-Ceyhan (BTC) pipeline, plan to load the first tanker with Azeri Light crude from Ceyhan in June 2005, BP Azerbaijan president David Woodward said in Baku...

Gazprom appoints new finance head.(Russia & CIS)(Brief Article)
April 16, 2004... Gazprom has appointed Andrey Kruglov as acting deputy chairman on financial issues. He will remain head of the company's financial and economic department. Kruglov replaces Boris Yurlov, who is leaving the company to become deputy head of...

Ukraine appoints new energy minister.(Russia & CIS)(Serhiy Tulub )(Brief Article)
April 16, 2004... Ukrainian president Leonid Kuchma has appointed Serhiy Tulub energy and fuel minister. Tulub held the post from December 1999 to July 2002, when he resigned due to disagreements in the government. The post was taken by Serhiy Yermilov, who...

Lukoil eyes Iranian upstream blocks.(Russia & CIS)(Brief Article)
April 16, 2004... Russia's Lukoil has purchased bidding documents for four Iranian oil blocks tendered for exploration and development earlier this year. More than 25 firms have bought data from Iran for 16 new blocks put on offer in January. Two of the blocks...

Rosneft sells floating rigs.(Russia & CIS)(Brief Article)
April 16, 2004... Rosneft's Sakhalinmomeftegaz (SMNG) subsidiary has sold its four floating rigs in the Mideast Gulf for $20mn, according to sources close to Rosneft. SMNG says operating the rigs outside Russia was unprofitable as it had to move them to the...

Crude supplies to refineries stable.(Russia & CIS)(Illustration)
April 16, 2004... Crude supplies to Russian and CIS refineries were 4.9mn b/d (21 inn t) in March, the same as February. Russian refineries received 4.3mn b/d, compared with 4.4mn b/d in February. Supplies to Belarus refineries rose to 335,000 b/d, from...

Domestic product prices rise.(Russia & CIS)(Illustration)
April 16, 2004... Russian domestic product prices moved up in March, with gasoil leading the way as demand surges before the harvest season. Fuel oil prices dropped in the first half of the month as winter demand fell, but rebounded in the second half of March...

Looking ahead.(Calendar)
April 16, 2004... Looking ahead * CIS Oil and Gas Traders Conference. 19-22 April. Moscow. Ecotechnic Consulting. Tel: +7095 159 9919 * OGU. May (date to be announced). Uzbekistan. ITE. Tel: +44 20 7596 5166 * Caspian Oil and Gas. 1-4 June. Baku....

St Petersburg product exports rise.(Russia & CIS)(St Petersburg oil terminal )(Brief Article)
April 16, 2004... Product exports through the St Petersburg oil terminal (PNT) totalled 643,000t in March, 22pc more than in February. Fuel oil unloading rates increased as temperatures rose, and the spring thaw improved navigation. Loading of the fuel reached...

Rosneft discovers oil in Algeria.(Russia & CIS)
April 16, 2004... The Rosneft-Stroitransgaz joint venture developing Algeria's block 245-south confirms a crude strike at its second test well, flowing at 1,095 b/d. The first well, completed last December, also revealed oil. The firm is assessing reserves....

Tatneft considers Libya.(Russia & CIS)(Brief Article)
April 16, 2004... Tatneft subsidiary Tatneftgeophysica, which specialises in geophysical and seismic work, has opened an office in Libya. The company hopes to secure contracts for carrying out seismic work and providing other services in the country. Tatneft...