FSU Energy articles from July 2005

FSU Energy archives from July 2005

Total hopes for new start: the French firm hopes to get back on track at Kharyaga after settling a long-running tax problem.
July 29, 2005... France's Total says it has settled its tax dispute with the Russian authorities over the Kharyaga field in Timan-Pechora and is ready to press ahead with expanding output. The company's vice-president for Russia, Roger Poirier, tells...

Crisis management: Shell's Sakhalin II problems are hardly a surprise. But they will be seized on by the major's Russian critics.(Editorial)
July 29, 2005... It was clear long before this month's announcement of a major cost overrun and delay in starting liquefied natural gas (LNG) exports that the Shell-led Sakhalin II project had run into trouble. Shell had already admitted that the cost of...

First Gazprom payment deadline met.(News)
July 29, 2005... Gazprom has received the first payment under the complex scheme devised to finance the state's recovery of majority control over the gas giant. Rosneftegaz, the holding company that now owns Rosneft, transferred the first payment tranche...

Sibneft moves towards sale.(News)
July 29, 2005... Sibneft has moved a step closer to paying its $2.29bn dividend, which is seen as a prelude to core shareholder Roman Abramovich selling up to Gazprom. The Sibneft board of directors has set 27 July as the deadline for shareholder...

Refiners snap up Urals.(petroleum)
July 29, 2005... Strong demand from European refiners pulled Urals discounts to unusual highs against the benchmark last week. Baltic-loading cargoes were changing hands at discounts of $2.20/bl to dated BFO or narrower--their strongest level in a year....

Total loses special tariff.(News)(Brief Article)
July 29, 2005... Russia has abolished a cheap pipeline tariff for crude produced by Total at the Kharyaga field in Timan-Pechora. The move has been initiated by pipeline operator Transneft, which argues that the French major is not meeting its obligation...

ONGC eyes new route into Kazakhstan.(News)(Brief Article)
July 29, 2005... Indian state-owned upstream firm ONGC has signed an agreement with domestic steel maker Mittal that could boost its chances of entering Kazakhstan. The memorandum of understanding (MOU) proposes creating joint ventures, with ONGC as majority...

Putin defends far east pipeline.(Vladimir Putin)
July 29, 2005... President Vladimir Putin has defended Russia's planned 1.6mn b/d far east crude pipeline, which has been coming under increasing fire over environmental concerns. Putin's comments come as a potential boost for Russian pipeline operator...

China worries about Russian oil.(Far east)
July 29, 2005... China is worried about Russia's ability to meet its target to supply 200,000 b/d (10mn t) of crude by rail this year. The head of China's state development reform commission, Ma Kai, told Russian transport minister Igor Levitin in Beijing...

Poland bangs Yamal 2 drum.(Natural gas)
July 29, 2005... Poland is hoping to secure financial support from other EU countries for construction of a second Yamal gas pipeline from Russia. Polish economy minister Jacek Piechota said recently that Poland hopes to persuade west European countries...

Eni eases grip.(Natural gas)(Brief Article)
July 29, 2005... Italian firm Eni has relinquished part of its gas import quota from Gazprom--easing its grip on deliveries of Russian gas to Italy--after coming under pressure from the Italian anti-monopoly authorities. Eni will give up 2bn [m.sup.3]/yr of...

Tuapse Aug loading schedule.(Exports and trade)(Brief Article)(Illustration)
July 29, 2005... Tuapse Aug loading schedule '000t Date Exporter Volume 1-4 Sibneft 72 6-9 Lukoil 72 10-13 TNK-BP 80 13-17 Lukoil 72 19-22 Sibneft 72 24-26 Slavneft 60 ...

Pivdenne Aug loading schedule.(Exports and trade)(Brief Article)(Illustration)
July 29, 2005... Pivdenne Aug loading schedule '000t Date Exporter Volume 7-8 TNK-BP 80 13-14 Surgutneftgaz 80 16-17 Lukoil ...

Primorsk Aug loading schedule.(Exports and trade)(Illustration)
July 29, 2005... Primorsk Aug loading schedule '000t Date Exporter Volume 1-2 Surgutneftegaz 100 1-2 Lukoil 100 2-3 TNK-BP ...

Port loadings.(Exports and trade)(Brief Article)(Illustration)
July 29, 2005... Port loadings '000 b/d Port Aug Jul % chg Novorossiysk 916 889 27 Tuapse 102 101 1 Pivdenne 153 122 31 Butinge 123 126 -2 Primorsk ...

Butinge Aug loading schedule.(Exports and trade)(Brief Article)(Illustration)
July 29, 2005... Butinge Aug loading schedule '000t Date Exporter Volume 7-8 Rosneft 100 13-14 Kazakh producers 100 18-19 Rosneft ...

Novo. Aug loading schedule.(Exports and trade)(Illustration)
July 29, 2005... Novo. Aug loading schedule '000t Date Exporter Volume Berth 1 1-2 Rosneft 140 2-3 Surgutneftegaz ...

Gasoline prices creep up.(Exports and trade)
July 29, 2005... Retail gasoline prices in Russia rose by 1.3pc in the first 11 days of July to reach an average of Rbs14.36/litre (50 cents/l), according to data from national statistical service Rosstat. Russian gasoline prices have risen by some 2.6pc...

BP makes money in Russia.(TNK-BP )(Brief Article)
July 29, 2005... TNK-BP accounted for just under a quarter of BP output in the second quarter of this year. The major's production increased by 3.5pc to 4.11mn b/d of oil equivalent (boe/d) compared with the second quarter of last year. TNK-BP's contribution...

TNK-BP gears up for Taimyr.(Brief Article)
July 29, 2005... TNK-BP plans to develop oil deposits near Rosneft's Vankor oil field in the Taimyr autonomous district of Siberia's Krasnoyarsk territory. The firm will invest up to Rbs2.2bn ($76.7mn) by 2008 in the Suzunskiy and Payahskiy fields, which have...

ConocoPhillips reaffirms Lukoil goal.(Russia & CIS)(Brief Article)
July 29, 2005... ConocoPhillips hopes to increase its stake in Lukoil to 20pc by the end of next year, and is actively looking for global investment opportunities in partnership with the Russian firm, company chief executive James Mulva said this week in a...

Russia lifts rail tariffs to seaports.(Russia & CIS)(Brief Article)
July 29, 2005... Rail tariffs for oil shipments to Russian seaports will rise by 5.4pc from 1 August, according to an order from the country's federal tariff service. But the increase is not expected to result in any changes to export patterns, as...

OMV teams up with Ukraine.(Russia & CIS)(Brief Article)
July 29, 2005... Austria's OMV has signed an agreement with Ukraine's state-owned Naftogaz Ukrainy and its offshore exploration subsidiary Chornomornaftogaz to bid for licences in the Black Sea. OMV is eager to expand its upstream portfolio in central and...

Looking ahead.(petroleum industry)(Brief Article)(Calendar)
July 29, 2005... * RRTC 2005: 5th Russia and CIS Refining Technology Conference. 22-23 September. Moscow. Tel: +44 20 7357 8394. www.europetro.com * KIOGE 2005 Exhibition & Conference. 4-7 October. Kazakhstan. ITE Group. Tel: +44 20 7596 5166....

Novopolotsk undergoes maintenance.(Russia & CIS)(Brief Article)
July 29, 2005... Belarus' Novopolotsk refinery is undergoing maintenance from 15 July to 15 August, as part of a five-year programme in 2005-10 to boost product quality. One of the two primary crude distillation plants will shut down and processing will fall...

Imperial raises money for Siberia.(Russia & CIS)(Imperial Energy )(Brief Article)
July 29, 2005... UK-listed Imperial Energy has raised around 50mn [pounds sterling] ($87mn) through a new share issue representing 54.1pc of its current ordinary share capital. The cash will finance drilling and preparation for the start of production at...

Kazakh oil and gas production.(Kazakhstan)(Illustration)
July 29, 2005... Kazakh oil and gas production Kazakh crude production t Company Jun May CNPC-Aktobemunaigaz 490,260 407,878 Aydan-Munai 29,372 24,852 Alties...

Crude exports from Azerbaijan.(Brief Article)(Illustration)
July 29, 2005... Crude exports from Azerbaijan '000t Exporter Jun May AIOC (Supsa) 671.1 592.0 AIOC and Socar (Novo.) 331.1 336.0 AIOC (Batumi) 84.3 -- Total ...

Crude production in Azerbaijan.(Brief Article)(Illustration)
July 29, 2005... Crude production in Azerbaijan '000t Production Jun May AIOC 1,121.0 1,018.0 Socar 742.7 729.1 Total 1,864.0 1,747.0 Total ('000 b/d) 453.6 411.4

Kazakh crude exports, imports.(Kazakhstan)(Brief Article)(Illustration)
July 29, 2005... Kazakh crude exports, imports '000t [+ or -] Exports Jun May Pipelines, inc: 3,042 -301 Atyrau-Samara 1,220 2...

Technical blip ahead.(Stock markets, petroleum company stocks)
July 29, 2005... The summer bull run continued, but analysts following technical trends are warning of an impending correction. Moscow's benchmark RTS index moved into a higher trading range again over the week, almost breaching 780 points on 25 July,...

PKN runs into Czech trouble.(PKN Orlen, Unipetrol A.S.)(Brief Article)
July 29, 2005... PKN Orlen's control over Czech oil and petrochemicals firm Unipetrol could be in jeopardy, following a row over a buyout offer to minority shareholders. The Polish firm has temporarily lost the voting rights for its 62.99pc stake in...

Slovnaft accused of profiteering.(Slovnaft Bratislava)(Brief Article)
July 29, 2005... The Slovak finance ministry wants to impose hefty fines on local oil firm Slovnaft, for what it describes as profiteering over the last three years. In its defence, Slovnaft says it has only passed on to its customers the effects of rising...

US appeal revives Norex hopes.(Norex Petroleum)(Brief Article)
July 29, 2005... A US federal appeals court has reversed last year's dismissal of the Norex Petroleum suit against Alfa-Access/Renova (AAR), the shareholder group representing BP's Russian partners in TNK-BP. Norex is seeking $1.5bn in damages from AAR in...

Prices defy fundamentals.(petroleum products market)(Brief Article)
July 29, 2005... * Product prices moved higher as crude futures recovered some of last week's losses. But fundamentals for both fuel oil and gasoil are looking weaker with demand affected by the higher prices. * A continuous influx of high-sulphur cracked...

Products prices.(petroleum products)(Brief Article)(Illustration)
July 29, 2005... Products prices 27 Jul $/t Chg on 20 Jul Baltic ports (fob) Russian gasoil 510.16 - 512.16 -1 M-100 (straight-run) 245.90 - 247.90 +7...

Freight rates.(Products market)(Brief Article)(Illustration)
July 29, 2005... Freight rates 27 Jul Rate WS ($/bl) Novorossiysk to Augusta (Italy) Clean products 30,000t 205 1.61 Fuel oil 30,000t ...

Crude prices.(Crude market)(Brief Article)(Illustration)
July 29, 2005... Crude prices 27 Jul Chg on diff $/bl 20 Jul to BFO NW Europe BFO (dated) 58.48 - 58.54 +2.04 ...

Freight rates.(Crude market)(Brief Article)(Illustration)
July 29, 2005... Freight rates (Capital Shipbrokers) 27 Jul WS Rate ($/bl) Novorossiysk to Augusta (Italy) Crude 130,000t 120 0.96 Crude 80,000t ...

Chinese demand in focus.(Crude market)(Brief Article)
July 29, 2005... * Crude prices surged by nearly $2/bl over the week, partly on the expectation that China's currency revaluation and rising domestic oil product prices will lift refinery margins and reinvigorate Chinese buying. Concerns about distillate...

Russian refinery output, June 2005.(Russian refinery output)(Illustration)
July 29, 2005... Russian refinery output, June 2005 '000t Crude Crude throughput throughput June Company/refinery June ...

Russian crude netbacks.(Netbacks)(Illustration)
July 29, 2005... Russian crude netbacks 27 Jul Primorsk Butinge Novo- rossiysk Urals (cif-fit) ($/bl) 55.31 55.31 56.51...

Gazprom makes Rosneft an offer: a battle is looming between Gazprom and Rosneft--and their political backers--over Rosneft's Sakhalin I stake.
July 22, 2005... Gazprom has made a firm offer to Rosneft for its 20pc stake in the ExxonMobil-led Sakhalin I project, says a Gazprom source. The news follows a recent indication from Gazprom head Alexei Miller that the company was considering such a move....

Limited horizons: Shell and Total's recent setbacks underline potential limits to growth for western oil firms in Russia.(Editorial)
July 22, 2005... Shell and Total's latest troubles in Russia appear to be very different, in terms of both nature and scale. One case involves a cost overrun at a well established multi-billion dollar project, and the other the demise of a hoped-for...

Rosneft tackles debt burden.(News)
July 22, 2005... Russia's state-owned Rosneft has secured a $2bn loan from ABN Amro and Barclays Capital, which will be used to restructure part of the company's massive debts. But the firm still has some way to go before it can convince potential investors...

Gazprorn rethinks Shell offer.(News)
July 22, 2005... Gazprom is likely to drive a harder bargain in talks over its entry to Sakhalin II following Shell's announcement that project costs are set to double. The gas giant will probably now offer Shell a smaller stake in a proposed joint...

Russia and Ukraine resolve gas spat.(Natural gas)
July 22, 2005... Gazprom and Naftogaz Ukrainy have finally reached a compromise over 7.8bn [m.sup.3] of Russian gas previously "lost" in Ukrainian storage. The deal will ease Ukraine's potential gas shortfall this year, but not cover it in full. The two...

Gazprom eyes gas transit options.(Natural gas)
July 22, 2005... Gazprom is looking at gas transit routes through Turkey in order to increase shipments through its underutilised Blue Stream pipeline across the Black Sea. But the options do not look particularly convincing. The gas company's interest in...

China overlooks Transneft in Russia talks.(News)
July 22, 2005... China has yet to approach Russian pipeline firm Transneft about securing hoped-for Russian crude supplies via the 200,000 b/d Atasu-Alashankou route from Kazakhstan, which is due to be completed by the end of this year. Under deals...

Gazprom considers swap option.(OAO Gazprom)(Brief Article)
July 22, 2005... Gazprom may offer Rosneft the Prirazlomnoye oil field in the Barents Sea in exchange for the oil firm's 20pc in the Sakhalin I project, but there are a number of obstacles to this plan. "Prirazlomnoye could be an attractive offer for...

Yamal-Europe capacity hike delayed.(Brief Article)
July 22, 2005... Gazprom says the Yamal-Europe gas pipeline from Russia to Europe via Belarus and Poland will reach full capacity of 33bn [m.sup.3]/yr in the middle of next year, later than its target of December 2005. The start-up of two compressor stations...

Domestic market offers attractive alternative.
July 22, 2005... Russian domestic crude oil prices are on the rise, prompting producers to see the local market as an attractive alternative to exports. Recent changes to Russia's export duty structure mean that refining margins now compare favourably...

Gasoil glut hits FSU exporters.(Former Soviet Union )(Brief Article)
July 22, 2005... FSU gasoil delivered to northwest Europe has consistently been trading at a discount to IPE gasoil futures over the past two weeks, for the first time since September 2003, thanks to high heating oil stocks in the region. Lack of storage...

Lukoil boosts gasoil exports.(OAO Lukoil)(Brief Article)
July 22, 2005... Lukoil plans to boost gasoil exports by 6pc this month as a result of increased refinery throughputs. The oil company's Vysotsk terminal--which handles 0.005pc sulphur diesel--will account for most of the increase. These shipments are more...

Surging pipeline exports offset rail shipment slump.(Exports & trade)(Illustration)
July 22, 2005... Record shipments through Russia's Transneft pipeline system pushed total FSU crude exports up to 5.57mn b/d in the first half of the year, an increase of 6pc on the same period of last year. The rise in Transneft exports combined with a...

Novo gains from Primorsk export fall.(Exports & trade)(Novorossisk Shipping Co.)(Brief Article)
July 22, 2005... Seaborne exports of crude from Russia in August are set to remain steady against scheduled July volumes, with an expected drop in shipments through Primorsk likely to be offset by an increase at Novorossiysk. Pipeline shipments to...

Kherson resumes normal operations.(Brief Article)
July 22, 2005... Ukraine's Kherson refinery plans to process 45,500 b/d (196,000t) of crude in July, resuming normal processing operations after a one-and-a-half month maintenance, which was completed in early June. The refinery processed some 27,000 b/d of...

Crude trading patterns change: the first half of the year has brought major changes to Russia's crude export landscape. TNK-BP is emerging as the country's biggest pipeline exporter, and Rosneft has supplanted Yukos, particularly on the Druzhba market. Meanwhile, overall pipeline exports have risen sharply thanks to expansion of Russia's Primorsk terminal.(Exports)(Industry Overview)
July 22, 2005... TNK-BP became the leading exporter of crude by pipeline to non-CIS destinations in the first half of this year, overtaking former leaders Yukos and Lukoil. The company shipped 660,000 b/d of crude through the Transneft pipeline system, an...

Scene set for Sibneft sale.(Exports/News)(Brief Article)
July 22, 2005... A Moscow court ruling has opened the way for Gazprom to take control of Sibneft by lifting a freeze on 14.5pc of Sibneft held by Yukos. The move allows the shares to be returned to Sibneft majority shareholder Millhouse Capital,...

Sibneft explores Chukotka.(Brief Article)
July 22, 2005... Sibneft has started exploration work on the offshore Tumansky block in the Anadyr bay section of the Baring Sea, off Russia's far east Chukotka autonomous district. The firm plans to collect 3,000km of 2D seismic with a view to starting...

Local buyers keep RTS strong.(Stock markets)(Illustration)
July 22, 2005... Liquidity on the RTS remains high, with volumes still comfortably over $100mn and local buying appetite strong. But foreign investors remain wary of increasing their exposure to Russia. Banking sources suggest that the Carlyle Group, an...

Novatek IPO countdown begins.(Companies)
July 22, 2005... The initial public offering (IPO) of shares in Russian gas firm Novatek, launched this week, should breathe new life into the market for Russian energy stocks, say investment banks. But the IPO looks like the final nail in the coffin of...

Sibir wins court victory.(Sibir Energy PLC)(Brief Article)
July 22, 2005... UK-listed Sibir Energy has filed a claim against Sibneft, its former partner in Sibneft-Yugra. Sibir hopes to recover shares in the firm, set up to develop the South Priobskoye field in west Siberia A court in the British Virgin Islands...

Diesel premiums rise.(Products market)(Brief Article)
July 22, 2005... * Most product prices were pushed lower by falling futures prices. Ample supplies of both gasoil and fuel oil from the FSU are weighing on the market * Thin demand for heating oil from end-users is keeping FSU gasoil at a discount to the...

Products prices.(Brief Article)(Illustration)
July 22, 2005... Products prices 20 Jul Chg on Baltic ports (fob) $/t 13 Jul Russian gasoil 511.37 - 513.37 -25 M-100 (straight-run) 238.96 -...

Freight rates.(Brief Article)(Illustration)
July 22, 2005... Freight rates 20 Jul Rate WS ($/bl) Novorossiysk to Augusta (Italy) Clean products 30,000t 235 1.85 Fuel oil 30,000t...

Crude prices.(Brief Article)(Illustration)
July 22, 2005... Crude prices 20 Jul Chg on diff NW Europe $/bl 13 Jul to BFO BFO (dated) 56.44 - 56.50 -1.87 -- Urals...

Freight rates (capital shipbrokers).(Brief Article)(Illustration)
July 22, 2005... Freight rates (Capital Shipbrokers) 20 Jul Novorossiysk to Augusta (Italy) WS Rate ($/bl) Crude 130,000t 115 0.92 Crude 80,000t 115 0.92 Crude 60,000t ...

European refiners snap up Urals.(Crude market)(Brief Article)
July 22, 2005... * Crude prices fell over the week as concerns over disruption to oil and gas output from another weather front eased. Hurricane Emily temporarily halted Mexico's crude exports and disrupted the bulk of its output, but is likely to stay clear...

Crude supplies to Russian refineries, June.(Illustration)
July 22, 2005... Crude supplies to Russian refineries, June Producer Sender Salavat refinery Surgutgazprom Surgutgazprom Surgutneftegaz Surgutneftegaz Total Salavat...

Russian crude netbacks.(Illustration)
July 22, 2005... Russian crude netbacks 20 Jul Primorsk Butinge Novo- rossiysk Urals (cif-fit) ($/bl) 54.12 54.12 54.67...

Sibneft takeover takes shape: Gazprom is preparing to swallow Sibneft, after President Vladimir Putin appeared to give his blessing.
July 15, 2005... Russian gas giant Gazprom has offered to pay around $10.2bn for a 72pc stake in oil firm Sibneft, says a Gazprom source, adding that it is already discussing details of the deal with banks. Alfa Bank analyst Anna Butenko says Gazprom...

Consolidated state: the takeover of Sibneft by Gazprom would merely be the latest stage in a long-running process.(Editorial)
July 15, 2005... So it's official, more or less. Gazprom has received presidential assent to take over Sibneft (see p1). Or rather, President Vladimir Putin has confirmed that the state-controlled giant is getting ready to obey Kremlin orders and swallow the...

Rosneft spreads its wings.(News)
July 15, 2005... Rosneft is due this week to formally ask the Russian government for permission to take over Yukos'Yurubcheno-Takhomskaya oil and gas field in east Siberia. This would give the state-owned firm a key role in development of what is set to...

Shell comes up with Sakhalin cost figure.(News)
July 15, 2005... The Shell-led Sakhalin Energy group has admitted that the second phase of the Sakhalin II project is now likely to cost $20bn--twice as much as originally expected. The new figure covers all planned development activity to 2014, with...

TNK-BP awaits tax claim ...(TNK-BP)
July 15, 2005... TNK-BP has released 2004 Gaap-standard accounts showing continued strong growth in its bottom line, but the threat of a massive tax claim is still hanging over the company. Profits were up by 43pc year-on-year to $4.02bn in 2004 and...

... And tackles environmental worries.(TNK-BP)
July 15, 2005... TNK-BP is stepping up efforts to tackle environmental problems associated with ageing "legacy" assets in Russia, such as the vast Samotlor field in west Siberia. But it says bringing up standards to international levels will take time. ...

Ukraine claims gas breakthrough.(News)(Brief Article)
July 15, 2005... Ukraine is searching for extra gas supplies to cover its domestic needs until the end of 2005. But even if it can strike a deal, Kiev will have to reach terms with Gazprom if it is to get the gas. The country has no problems with gas...

Lukoil to upgrade Odessa refinery.(News)(Brief Article)
July 15, 2005... Lukoil plans to shut down its 72,000 b/d Odessa refinery next month for modernisation, a process that could last two years. Lukoil president Vagit Alekperov says reconstruction will cost around $500mn. The company has already almost...

CPC Blend shipments fall.(Caspian Pipeline Consortium)(Brief Article)
July 15, 2005... The Caspian Pipeline Consortium (CPC) terminal near Novorossiysk handled 594,000 b/d (2.3mn t) of crude in June, compared with 650,000 b/d in May. The drop was because of routine maintenance that started in late May at the Tengiz field in...

Turgai wins damages.(Turgai Petroleum)(Brief Article)
July 15, 2005... Turgai Petroleum, the 50:50 joint venture between PetroKazakhstan and Lukoil, has won two lawsuits against PetroKazakhstan. A court in southern Kazakhstan ordered PetroKazakhstan to pay Turgai $5.6mn. Turgai claims that PetroKazakhstan...

Offshore plans take shape.(Natural gas)
July 15, 2005... Gazprom's board is due to approve a development programme for Russia's offshore shelf in September, as part of a strategy to maintain long-term gas production growth. The gas giant hopes to be producing 170bn [m.sup.3]/yr of gas from...

Crude ambitions.(Natural gas)(Brief Article)
July 15, 2005... Gazprom's first offshore project is the Prirazlomnoye field in the Pechora Sea, which is already under development. The gas giant took over operatorship of the project from state-owned Russian oil firm Rosneft last year after it bought...

Rail exports drop further.(Exports and trade)
July 15, 2005... Russian exports by rail in June were down by a third against shipments in the same month last year and by 19pc against May at 617,000 b/d (2.54mn t). The month-on-month decline is the result of a sharp reduction in shipments to Baltic...