FSU Energy articles from February 2001

FSU Energy archives from February 2001

CPC faces fresh delay.(Brief Article)(Statistical Data Included)
February 23, 2001... The Tengiz-Novo pipeline faces new delays. This time technical problems and crude quality issues are to blame Start-up of the Caspian Pipeline Consortium (CPC) crude pipeline is almost certain to be postponed well beyond the scheduled...

Selling the family silver.(Brief Article)
February 23, 2001... Russia needs cash to pay its debts. State-owned oil firm Rosneft should come in handy The Russian government has succeeded in overcoming Duma opposition to a plan for paying Russia's Paris Club debts, based on projections of additional...

Poland's PKN eyes Leuna refinery.(Brief Article)
February 23, 2001... Polish oil giant PKN Orlen has been in discussions with France's TotalFinaElf about buying a 50pc stake in the 214,000 b/d Mider refinery near Leuna in eastern Germany. Talks have halted for the time being, but such a deal could give the...

Medvedev slams Vyakhirev's style.(chairman of Gazprom Rem Vyakhirev)(Brief Article)
February 23, 2001... Gazprom board head and first-deputy of the presidential administration Dmitry Medvedev said this week that it is too early to discuss what will happen when the contract of Gazprom chairman Rem Vyakhirev expires in May. But he issued...

Energy ministry awaits its fate.(Brief Article)
February 23, 2001... After President Vladimir Putin's sacking of energy minister Alexander Gavrin earlier this month, uncertainty over the ministry's future is mounting. All candidates for the post are reluctant to head a ministry without powers, and there has...

Kazakhstan eyes CPC export route.(Caspian Pipeline Consortium)(Brief Article)(Statistical Data Included)
February 23, 2001... Kazakh oil producers are showing more interest in the Caspian Pipeline Consortium's 600,000 b/d Tengiz-Novorossiysk pipeline as a potential export outlet, despite expected delays to start-up. But CPC shareholders from the...

Baku talks gas imports with Iran.(Azerbaijan)(Brief Article)
February 23, 2001... Azerbaijan last week started talks on importing up to 3bn [m.sup.3]/yr of natural gas from Iran for power generation, says Valekh Aleskerov, foreign investment chief of state-owned oil and gas firm Socar, who headed the Azeri negotiating...

Itera signs Turkmen deal.(contracts with Turkmenneftegaz)(Brief Article)
February 23, 2001... Russian gas trader Itera last week signed a contract with Turkmen oil and gas firm Turkmenneftegaz to buy 10bn [m.sup.3] of gas this year. Itera will pay $40/'000[m.sup.3] on a 50/50 cash/barter basis. The volumes are likely to go to Russia's...

Lukoil forges downstream future ...(Brief Article)(Statistical Data Included)
February 23, 2001... Lukoil wants to buy a US refinery to supply its recently acquired chain of 1,300 gasoline stations in northeast America. The news marks the latest phase in the Russian giant's overseas expansion strategy. Vadim Gluzman, president of...

... and grapples with upstream restructuring.(Brief Article)
February 23, 2001... Lukoil is in the throes of a major reorganisation, planning to create a new upstream holding to be called the International Oil Company (IOC). The company is being formed around the nucleus of its west Siberian subsidiary Lukoil-Perm, but...

Russia and CIS.
February 23, 2001... Russia cuts export tax The Russian government on 17 February published a resolution reducing the export tax on crude oil and gas condensate to 22 [European Dollar]/t ($2.75/bl) from 48 [European Dollar]/t. The resolution will come into...

Caspian/central Asia.(Brief Article)
February 23, 2001... Open the floodgates Russian deputy prime minister Viktor Khristenko this week told the Kazakh government that it can ship as much as oil as it wants through Russia this year. "We will carry all the oil Kazakhstan asks for," he said...

Central/eastern Europe.(Brief Article)(Statistical Data Included)
February 23, 2001... Polish motor fuel consumption falls Polish gasoline and diesel demand slumped last year as a result of higher prices, according to Nafta Polska -- the state body overseeing privatisation and restructuring of the oil sector. Gasoline...

Liepaja looks for oil export role.(Statistical Data Included)
February 23, 2001... Liepaja is an ice-free port in Latvia, 200km west of Riga. It only started commercial operations in mid-1994, taking over a Russian Baltic navy base, but its profile is rising rapidly. The port is a free economic zone, providing tax...

Turkish turmoil hits Russian shares.(Statistical Data Included)
February 23, 2001... Financial turmoil in Turkey sent Russian shares spiralling downwards, dramatically curtailing an earlier surge that had seen the Russian Trading System (RTS) index of leading shares hit a year high of nearly 187 points. A heated...

Khodorkovsky: `Putin listens to us'.(Interview)
February 23, 2001... Yukos chairman Mikhail Khodorkovsky was among the oligarchs who attended a meeting with Russian president Vladimir Putin. In a recent interview with Argus in Houston, he described the relationship between oil firms and the state. What...

Better crude margins hit fuel oil.(Brief Article)(Statistical Data Included)
February 23, 2001... * Russian product prices surged in northwest Europe despite weaker crude futures. Cracked fuel oil demand remained strong, but straight-run interest waned slightly. Colder weather supported gasoil in northwest Europe, but falling demand put...

Market braces for March crude flood.(Brief Article)(Statistical Data Included)
February 23, 2001... * Outright Urals prices fell by around $2/b1, tracking dated Brent, despite Opec supply cuts and heightened tension in Iraq. The fall, which came after the end of a trader play on the Brent March futures contract, improved refining margins...

Sakhalin Energy comes under fire.(Brief Article)
February 16, 2001... A key western oil consortium is accused of tax evasion. But there appears to be an ulterior motive Russia's audit chamber has accused the Shell-led Sakhalin Energy consortium, operator of the Sakhalin II production-sharing agreement...

Less than meets the eye.(Baku-Ceyhan pipeline)(Brief Article)
February 16, 2001... Chevron wants to join the Baku-Ceyhan pipeline sponsor group. Membership could be a useful insurance policy Azerbaijan and Turkey -- and their backers in Washington -- are understandably delighted about winning Chevron's potential...

Agip wins Kashagan operatorship.(Brief Article)
February 16, 2001... Italy's Agip has won operatorship of Kazakhstan's giant Kashagan oil project in the Caspian Sea, beating rival investors TotalFinaElf, ExxonMobil and Shell in a long-running battle for control of what has been touted as the world's biggest...

Chevron steps up for Baku-Ceyhan group.(Brief Article)
February 16, 2001... US firm Chevron last week announced that it plans to join the Baku-Ceyhan sponsor group, which will attempt to drum up financing to cover detailed engineering for the Azerbaijan-Turkey crude export pipeline. Turkish and Azeri officials...

Rivals gang up on Rosneft.(Brief Article)
February 16, 2001... Russia's leading oil firms have cast aside their differences to block state-owned Rosneft's hopes of becoming state agent for production-sharing agreement (PSA) projects. Industry sources say the government has already drafted a ruling...

Duma hearings show PSA stagnation.(production-sharing agreements)(Brief Article)
February 16, 2001... Russia's lack of progress on production-sharing agreements (PSAs) was thrown into stark relief at Duma hearings this week. Those present were presented with a depressing picture of stagnation since the first PSA deal was struck seven years...

Rusia partners conspire against Interros.(British Petroleum Company PLC, Tyumen Oil)(Brief Article)
February 16, 2001... BP and Tyumen Oil (TNK), the major's new-found ally in the 1.4 trillion [m.sup.3] Kovykta gas project in Russia's far east, are plotting to oust Vladimir Potanin's Interros group from Kovykta licence-holder Rusia Petroleum. In a parallel...

BP pushes hard for Sakhalin foothold.(British Petroleum Company PLC)
February 16, 2001... BP has resumed talks with Russian state-owned oil company Rosneft on joint bidding for the Sakhalin IV and V oil projects in Russia's far east. The major remains eager to gain a foothold on Sakhalin, although India's ONGC recently beat it to...

Ritek plans to boost Ob crude shipments.(Brief Article)
February 16, 2001... Russian crude producer Ritek plans this year to ship 80,000t of crude from the Gulf of Ob in Russia's far north to northwest Europe by sea. The route bypasses the Transneft pipeline system, but exports are limited by the region's three-month...

Russia slashes crude export duty.(Brief Article)(Statistical Data Included)
February 16, 2001... The Russian government ruled this week to reduce the crude export duty from 48/t [European Dollar] ($6.05/bl) to 22/t [European Dollar] (FSUE, 2 February, p2). The government decision will be published early next week and will take force one...

Government wants to sell Tuapse.(Black Sea port oil)(Brief Article)
February 16, 2001... State-owned Rosneft has set its sights on a 24pc stake in the Black Sea port of Tuapse, although the previously-planned sale is now on hold. Earlier this month, the federal property fund tried to open the $14mn tender, but then postponed it...

Moscow and Kiev restore power links.(Brief Article)
February 16, 2001... Russia has taken a significant step towards regaining control of Ukraine's energy sector. An agreement on gradual reunification of the two countries' power grids was signed this week in Dnepropetrovsk, during a meeting between Russian...

Petromidia shifts into high gear.(refinery processes Iraqi crude)
February 16, 2001... Romania's 100,000 b/d Petromidia refinery last week resumed crude processing after five years of intermittent working. The resumption in operations at the country's most modern plant follows its takeover last year by new owner Rompetrol, a...

Russia and CIS.(includes multiple articles)(Brief Article)(Statistical Data Included)
February 16, 2001... Tariff hikes hit rail exports Russian exports of crude and products by rail slipped last month to 4.3mn t, a decrease of 8pc on December 2000 (see pp14-15). The drop follows the recent decision by Russia's rail authorities to increase...

Caspian/central Asia.(Brief Article)
February 16, 2001... TCO plans to up output Kazakhstan's Tengizchevroil (TCO) joint venture plans to produce 12mn t (245,000 b/d) of oil this year, up from 10.4mn t last year, says general-director Tom Winterton. TCO, which is developing the Tengiz field in...

Central/eastern Europe.(includes multiple articles)(Brief Article)(Statistical Data Included)
February 16, 2001... Russia/Yugoslavia boost energy ties Gazprom will this year supply Yugoslavia with 1.5bn [m.sup.3] of natural gas, Russian vice-premier Viktor Khristenko announced last week in Moscow after a meeting with his Yugoslavian counterpart...

Baltics.(Mazeikiu Nafta )(Brief Article)
February 16, 2001... Butinge enjoys transit boost Lithuanian oil firm Mazeikiu Nafta (MN), which is managed by US firm Williams, expects bumper shipments through its Butinge terminal this month. Russian exports through Butinge are scheduled to reach 500,000t...

Energy shares.(Brief Article)(Illustration)(Statistical Data Included)
February 16, 2001... Energy shares 14 Feb Year RUSSIA ($) chg INDICES index 7 Feb low high ASP Oil & Gas 312.60...

Paris Club promise re-ignites RTS.(Brief Article)(Statistical Data Included)
February 16, 2001... A pedestrian week for Russian equities was salvaged by the Russian government's sudden reaffirmation of its Paris Club debt commitments, rekindling investor interest in the Russian Trading System (RTS). The index rallied by 7pc over the week...

Gazprom board battle unfolds.(Brief Article)
February 16, 2001... Gazprom's board met this week and set 29 June as the date for the company's next annual general meeting (AGM) -- at which a new board of directors will be chosen. The candidate list of Gazprom's own management has not yet been revealed,...

Company news.(petroleum industry)(Brief Article)
February 16, 2001... * Russia's Yukos plans to issue level 1 American Depositary Receipts (ADRs) in the first quarter of this year, with the aim of converting around 20pc of its shares. The company expects to receive permission for the issue by the end of this...

Mol profits fall.(PKN Orlen)(Brief Article)
February 16, 2001... Hungary's oil and gas firm Mol saw profits fall in 2000, ahead of a possible co-operation agreement with Polish oil giant PKN Orlen later this year. Mol's profits were down by 45pc because of heavy losses in its gas business (FSUE, 17...

Oversupply weighs on prices.(Brief Article)(Statistical Data Included)
February 16, 2001... * Falling crude put Russian product prices under renewed pressure. Poor bunker and refinery feedstock demand weighed on fuel oil, and gasoil fell as buying interest faded. * A lack of storage space in Rotterdam and dwindling bunker demand...

Falling prices fail to rescue discounts.(Brief Article)
February 16, 2001... * The steep climb in outright prices that forced European refiners to cut runs finally came to an end. But positive refining margins are still only a few days old, and refiners are reluctant to increase runs again -- preferring to pull...

Russian rail data.
February 16, 2001... [TABULAR DATA NOT REPRODUCIBLE IN ASCII]

Netbacks.
February 16, 2001... [GRAPHS OMITTED] [TABULAR DATA NOT REPRODUCIBLE IN ASCII]

Interros squares up to TNK.(joint venture with British Petroleum Company PLC)(Brief Article)
February 9, 2001... Tyumen Oil (TNK) is on the brink of realising its Kovykta ambitions. But Interros is doing its best to block it Tyumen Oil's hopes of boosting its stake in the BP-led Rusia Petroleum joint venture, by joining two exploration licences with...

Switch on the lights.(Russian energy policy)(Brief Article)
February 9, 2001... Russia's remote regions have been darkened by blackouts. But Putin is more interested in bringing power back to the centre Cynics claim President Vladimir Putin has succeeded in changing very little during his first year in office. In...

Gref takes control of PSAs.(production-sharing agreements)(Brief Article)
February 9, 2001... The Russian government's long-awaited ruling transferring control of production-sharing agreements (PSAs) to the trade and economic development ministry was issued on 6 February. The ministry, headed by influential reform figure German...

Putin sends energy minister packing.(Alexander Gavrin)(Brief Article)
February 9, 2001... Russian energy minister Alexander Gavrin resigned this week after being blamed for acute power shortages in the far east Primorye region. Gavrin appears to have been made a scapegoat for the crisis, and his departure is part of the...

UES board increases control.(management strategy)(Brief Article)
February 9, 2001... The board of Russian power giant UES took several important decisions at its meeting on 2 February, which analysts say will improve corporate governance. The developments increase shareholders' input in the proposed restructuring of the...

Mazeikiu Nafta calls for action.(management information)(Brief Article)
February 9, 2001... Lithuanian oil firm Mazeikiu Nafta (MN) has warned that inaction by the Baltic state's government is impeding its ability to raise long-term financing, jeopardising investment plans. MN general-director Jim Scheel highlighted a "lack of...

Yukos seeks deal with Mazeikiai.(contract information)(Brief Article)
February 9, 2001... Russia's Yukos said this week that it will terminate an 18-month agreement with Lukoil on co-ordination of crude shipments to Lithuania's 263,000 b/d Mazeikiai refinery. Yukos refining and marketing president Nikolai Bychkov said this...

Private producers slam Transneft.(pipeline management)(Brief Article)
February 9, 2001... Russia's private crude producers and joint ventures were this week considering their options after accusing pipeline operator Transneft of imposing unfavourable conditions for pumping crude in 2001. The conditions apply to all oil firms,...

Slavneft steps up Iraq drive ...(petroleum industry)(Brief Article)
February 9, 2001... Russian-Belarus joint venture Slavneft -- almost 75pc owned by the Russian state -- has its eye on upstream projects in Iraq, Lebanon and Iran. Industry observers say Slavneft managers hope to turn the firm into a state agent for overseas...

Rosneft wants a piece of Prirazlomnoye.(Brief Article)
February 9, 2001... Talks between the Russian government and Gazprom on development of the 550mn bl Prirazlomnoye offshore oil project have entered their final stage. The project is likely to unite German firm Wintershall and Gazprom subsidiary Rosshelf in a...

... and mulls Sudan project with Rosneft.(Slavneft )(Brief Article)
February 9, 2001... A Slavneft source tells Argus the firm is to establish a joint venture with state-owned Rosneft in six months, to operate prospective oil and gas blocks in Sudan. The planned alliance may be extended in other upstream projects, possibly in...

Russia & CIS.(oil and gas industry briefs)(Brief Article)
February 9, 2001... January crude exports slip Russian crude exports to non-CIS destinations through the Transneft system rose slightly last month. Total exports, including transit, were 11.76mn t (see p14-15 "Russian crude exports"), higher than in the...

Caspian/central Asia.(oil and gas industry briefs)(Brief Article)
February 9, 2001... TNK forces Aktobe to cut output Kazakh producer Aktobemunaigaz has been forced to slash production due to the refusal of Tyumen Oil's (TNK) 170,000 b/d Orsk refinery to accept its crude. The Kazakh firm exports almost all of its 52,000...

Refiners soak up straight-run fuel oil.(Brief Article)
February 9, 2001... FSU seaborne product exports hit their highest level in four months in January at almost 4.5mn t. Fuel oil exports surpassed 1.6mn t, mostly straight-run, with shipments through Estonia's Tallinn up by half on December levels. Crumbling crude...

`Stop the stealing,' says Fyodorov.(Interview)
February 9, 2001... Boris Fyodorov, the head of investment bank UFG and a former deputy prime minister of Russia, represents minority shareholders on the board of gas giant Gazprom. He has led calls for an investigation into Gazprom's opaque relations with...

US markets retain RTS stranglehold.(Industry Overview)(Statistical Data Included)
February 9, 2001... Russian shares drifted lower trailing the bearish US market. The US Federal Reserve's 50 basis point cut last week failed to lift Wall Street, where investors had already priced in the reduction. With limited volumes traded on the Russian...

BP sale heats up Okioc operator battle.(Brief Article)
February 9, 2001... TotalFinaElf has agreed in principle to buy BP's 9.5pc stake in the Offshore Kazakhstan International Operating Company (Okioc), operator of potentially the biggest oil field in the Caspian Sea. The deal will make the French firm the largest...

Lukoil eyes Bulgarian expansion.(Brief Article)
February 9, 2001... Lukoil could be poised to boost its 58pc stake in Bulgaria's 150,000 b/d Neftochim refinery in the Black Sea port of Burgas. The Russian firm is tipped as a likely buyer of a 15pc stake, consisting of preferential shares originally earmarked...

Refiners still hungry for fuel oil.(Brief Article)(Statistical Data Included)
February 9, 2001... * Russian product prices surged across the board as a result of tightening supply and increased demand. Continuing poor crude margins boosted interest in straight-run fuel oil as a feedstock, while limited Baltic supplies helped support...

Refiners shun market.(Brief Article)(Industry Overview)(Statistical Data Included)
February 9, 2001... * Refining margins continued to be squeezed by rising outright prices. Urals climbed $3.20/bl on the back of Brent, which was driven up by a trader's position on the futures market. Many refiners have already cut runs, and others are...

Russian crude exports.(Brief Article)
February 9, 2001... [TABULAR DATA NOT REPRODUCIBLE IN ASCII] [TABULAR DATA NOT REPRODUCIBLE IN ASCII]

Netbacks.(Brief Article)(Illustration)
February 9, 2001... [TABULAR DATA NOT REPRODUCIBLE IN ASCII] [Graph OMITTED]

Moscow pumps up the volume.(petroleum industry)(Brief Article)
February 2, 2001... Russia is awash with oil it cannot handle. So the government has opened up the export taps Russian oil companies this week received an extra first-quarter crude export allocation of 260,000 b/d (3.2mn t) for non-CIS destinations. The...

Sticks and carrots.(petroleum industry)(Brief Article)
February 2, 2001... Putin is knocking the oil barons into line again. And it seems there is not much they can do about it Once again, President Vladimir Putin has been waving a big stick at the Russia's business elite. And, as usual, the oil companies are...

BP makes sharp exit from Lukoil.(British Petroleum Company PLC)(Brief Article)
February 2, 2001... Investors this week rushed to snap up BP's 7pc stake in Lukoil, after the major announced its decision to sell on 29 January. The oversubscribed sale earned BP $657mn, confirming Lukoil's status as Russia's leading blue chip, but many...

Upper house agrees Kovykta PSA.(gas field)(Brief Article)
February 2, 2001... The federation council, the upper chamber of Russia's parliament, has approved the 1.4 trillion [m.sup.3] Kovykta gas field in east Siberia for development under production-sharing agreement (PSA) conditions. The bill must now be signed into...

TNK and Slavneft slug it out again.(Tyumenneft)(Brief Article)
February 2, 2001... Russia's audit chamber has released a report detailing alleged tax evasion and transfer pricing activities by Slavneft. Slavneft claims the report was instigated by rival Tyumen Oil (TNK) in its campaign to take over Slavneft, but it seems...

Old friends meet in the Urals.(Tyumenneft, Urals Oil)(Brief Article)
February 2, 2001... Tyumen Oil (TNK) has revealed the motive behind its involvement in the new Urals Oil (UOC) joint venture with the Urals regional administration (FSUE, 26 January, p8). The deal gives TNK indirect stakes in two regional distributors,...

Czech government to privatise Unipetrol.(Brief Article)
February 2, 2001... The Czech government hopes to sell its 63pc stake in petrochemical group Unipetrol by the end of 2001. Unipetrol has a 51pc stake in CRC, which operates the Czech Republic's 62,000 b/d Kralupy and 103,000 b/d Litvinov refineries. The rest of...

Russia asks for US help in Itera probe.(Itera International Energy Corp., Gazprom Russian Joint Stock Co.)(Brief Article)
February 2, 2001... Russia's audit chamber plans to ask for US help in investigating the link between Gazprom and Florida-registered trader Itera. At the same time, the government has moved to end an arrangement where Itera buys gas on the cheap. Audit...

Putin gives Shtokman development his blessing.(Shtokman gas field in the Barents Sea)(Brief Article)
February 2, 2001... President Vladimir Putin has given the go-ahead for development of the 3.5 trillion [m.sup.3] Shtokman gas field in the Barents Sea, and an ambitious pipeline project to deliver gas from the field to western Europe. An international...

Gazprom says charter will cost $5bn.(Gazprom Russian Joint Stock)(Brief Article)
February 2, 2001... Gazprom could lose over $5bn if Russia joins the Energy Charter Treaty (ECT), board member Yuri Komarov told Duma deputies at hearings last week. The Russian government signed the treaty, which provides a legal foundation for international...

In brief.(Lukoil in Iraq)(Alfa-Eko exploration license)(Brief Article)
February 2, 2001... Iraq threatens to kick out Lukoil Russian energy ministry sources tell Argus that Iraq has informed Lukoil that it intends to cancel its 20bn bl West Qurna oil field contract. Baghdad has been critical of Lukoil over lack of progress, but...

Kaztransoil takes control.(oil exports from Kazakhstan)(Brief Article)
February 2, 2001... Kazakh pipeline operator Kaztransoil (KTO) this week assumed full control of all exports from Kazakhstan though the 260,000 b/d Atyrau-Samara pipeline, Kazakhstan's main export pipeline. KTO will act as export co-ordinator, routing...

Shares hold, despite Lukoil sell-off.(energy sector stocks)
February 2, 2001... Russian shares held firm in a week where BP's decision to sell its 7pc stake in oil leader Lukoil (see p3) directed market movement. The Russian Trading System (RTS) rebounded after nearly a six-point drop on the news to close at 173.5...

Petromidia resumes processing.(Brief Article)
February 2, 2001... Dutch-based oil investment firm Rompetrol paid the first $35mn installment for Romania's 100,000 b/d Petromidia refinery last week, effectively taking control of the company. From the start of February, the western-managed Romanian-owned...

Chigirinsky settles in at CFC.(Shalva Chigirinsky new head of Central Fuel Company)(Brief Article)
February 2, 2001... The new management of the Central Fuel Company (CFC) is to issue a tender for crude supply to the company's Moscow refinery. Moscow businessman Shalva Chigirinsky last week replaced former energy minister Yuri Shafranik as head of the...

Lukoil delays US GAAP release.(financial results)(Brief Article)
February 2, 2001... Oil giant Lukoil has postponed the release of US GAAP-standard financial results for 1998 and 1999, failing to meet its self-imposed deadline of 31 January. Instead, the company wants to time the release in conjunction with launching a level...

Weak refining margins boost fuel oil.(prices)(Brief Article)
February 2, 2001... * Crumbling refining margins sparked demand for Russian straight-mn fuel oil as a feedstock, boosting prices. But gasoil prices sank further as demand failed to emerge in northwest Europe. * Straight-run fuel oil supplies were tight in...

Negative margins start to bite.(crude prices)(Brief Article)
February 2, 2001... * Sour refining margins remained negative, putting severe pressure on spot discounts. In northwest Europe, Urals tumbled by 55 [cents]/bl to a discount of $1.60/bl to dated Brent. * Ample supply also put pressure on Urals discounts, with...