FSU Energy articles from June 2004

FSU Energy archives from June 2004

Russia takes the lead: the state is turning its attentions to far east LNG exports, much to the surprise of Sakhalin Energy.
June 25, 2004... The Russian government and state-controlled gas giant Gazprom appear to be trying to take the lead in negotiations on liquefied natural gas (LNG) sales to China and South Korea. The news comes as a surprise to Shell, leader of the Sakhalin II...

On the brink: there were more positive signals on Yukos this week. But it could be unwise to read too much into them.(Editorial)
June 25, 2004... Recent reports of a likely reprieve for Yukos could be a little premature. But the company's management and the investment community have at least been offered a few straws to clutch at. The first came last week with President Vladimir...

Yukos pins hopes on dialogue.(News)
June 25, 2004... The Moscow arbitration court this week brought enforcement of the $3.4bn tax claim against Yukos a step closer. On 23 June the court lifted a temporary injunction against enforcing payment of the bill. The tax ministry can now enforce the...

Plea for mercy.(News)
June 25, 2004... Yukos management seems to be taking an Increasingly submissive line in its approaches to the government, in contrast to just a couple of weeks ago when the firm said it was prepared to fight the tax case every step of the way. The company...

Russia wants Odessa-Brody.(Exports and trade)
June 25, 2004... Moscow has said it wants Transneft to control Ukraine's 290,000 b/d Odessa-Brody pipeline as a precondition for using it to export Russian crude. "Russian participation in using the reversed Odessa-Brody line is possible, if its role in...

Russia plans Black Sea boost.(Exports and trade)(Brief Article)
June 25, 2004... Crude exports from Black Sea ports look set to increase in July, according to preliminary port schedules. Transneft plans to raise pipeline shipments to Novorossiysk to 989,000 b/d (4.2mn t) next month, 50,000 b/d above the June schedule....

TNK-BP considers Turkish bypass.(Exports and trade)(Brief Article)
June 25, 2004... TNK-BP is considering participation in a consortium that could be created to build a $913mn pipeline across the European part of Turkey to bypass the Turkish straits. But Ankara has yet to decide on whether to approve the route, which faces...

Gazprom cranks up Baltic pipeline plans.(News)
June 25, 2004... Strained relations with transit countries Ukraine and Belarus and hopes of tapping the growing UK gas market are prompting Gazprom to step up efforts to build a major export pipeline across the Baltic Sea. And there are signs of interest from...

Norsk Hydro outlines Shtokman hopes.(News)
June 25, 2004... Norway's Norsk Hydro hopes to sign an agreement this autumn defining its role as partner for Gazprom in developing the 3 trillion [m.sup.3] Shtokman gas field in the Barents Sea. "We have now started the negotiating phase," the firm's...

Warsaw beefs up Lotos for IPO.(Poland)(Initial Public Offering )
June 25, 2004... Nafta Polska, the government agency overseeing privatisation of Poland's oil sector, is accelerating preparations for an initial public offering (IPO) of the Lotos group--based around the 90,000 b/d Gdansk refinery--planned for 2005. If...

Storage privatisation fails.(Poland)
June 25, 2004... Plans to merge storage assets belonging to PKN Orlen with Poland's main storage operator Naftobazy, before selling 65pc of the combined firm to Dutch company Vopak, have broken down. Nafta Polska, says it is now unclear what will happen...

Astana seeks $1bn for BG Kashagan stake.(News)
June 25, 2004... Kazakhstan is looking for a $1bn loan to secure UK firm BG's 16.67pc interest in the 13bn bl Kashagan project, says energy minister Vladimir Shkolnik. The comments, made this week in Astana, follow news that Kazakhstan has made an...

Petromidia sale comes under scrutiny.(News)
June 25, 2004... Romania's second-largest oil firm, Rompetrol, is facing investigation by the country's authorities. Rompetrol deputy chief executive Philip Stephenson says prosecutors are to investigate alleged wrongdoing during the privatisation of the...

Lukoil 2003 results below forecast.(Russia & CIS)(Brief Article)
June 25, 2004... Lukoil's full-year results for 2003 reveal profits lower than most forecasts. The company reports that net profits reached $3.7bn over the year, against analysts' predictions of around $4bn. Revenues actually came in around $700mn above most...

Lukoil looks to west coast.(Russia & CIS)(Litasco, ISO Octane)(Brief Article)
June 25, 2004... Lukoil looks set to enter the US west coast gasoline market following a deal signed with a UAE gasoline refiner. The Russian firm's Geneva-based trading arm, Litasco, has signed a third-party processing agreement with Dubai-based refiner ISO...

Russia backs tanker ban.(Russia & CIS)(Brief Article)
June 25, 2004... Russia has backed an International Maritime Organisation (IMO) ban on the use of single-hulled tankers to carry crude or fuel oil in the Baltic Sea from 5 April 2005. The ban will mean that no single-hulled tanker over 5,000t can be loaded...

Russia schedules higher CIS exports.(Russia & CIS)(Brief Article)
June 25, 2004... Russia's pipeline crude exports to the CIS in the third quarter have been set at 908,000 b/d (11.4mn t), or 39,000 b/d more than under the second-quarter plan. Russian crude will account for most of the supplies. Kazakhstan will ship 16,000...

Looking ahead.(Calendar)
June 25, 2004... * Russian Offshore: Oil & Gas Exploration and Production. 6-7 July. Moscow. RPI. Tel: +7095 502 5433. * KIOGE 2004. 5-8 October. Kazakhstan. ITE. Tel: +44 20 7596 5166 * Oil & Gas Transportation in the CIS & Caspian Region 6th Annual...

TNK-BP confirms restructuring plans.(Brief Article)
June 25, 2004... TNK-BP confirms that it is developing a corporate restructuring plan, based around the creation of a new Russian holding company. The plan is meant to simplify TNK-BP's corporate structure, which includes 600 companies in Russia and...

Crude output edges up, refining down.(Russia & CIS)(federal statistics service)(Brief Article)(Illustration)
June 25, 2004... Russia produced 9.04mn b/d (38.4mn t) of crude and gas condensate in May, according to data from the federal statistics service, compared with 8.98mn b/d in April. Russian refineries processed 3.7mn b/d (15.8mn t) of crude, down from 3.8mn...

PetroKazakhstan gets $100mn loan.(Caspian/central Asia)(Brief Article)
June 25, 2004... Canada's PetroKazakhstan, which works in southern Kazakhstan, has received a $100mn, six-year credit line from an unidentified French bank, company treasurer Sholpan Kurabayeva told an international conference in Moscow. Unlike previous...

CPC ready for compromise.(Caspian/central Asia)(Caspian Pipeline Consortium)(Brief Article)
June 25, 2004... Caspian Pipeline Consortium (CPC) shareholders may agree to change the agreements that regulate crude exports along the Tengiz-Novorossiysk pipeline, says CPC deputy general-director Cameron Macara. "A compromise solution should be reached on...

Kazakhstan to ban gasoil exports.(Caspian/central Asia)(Brief Article)
June 25, 2004... The Kazakh government will ban gasoil exports from 1 July to 1 October to cover domestic market demand for the harvest season, says the energy ministry. The ban could be postponed until 15 July. Kazakhstan has also capped domestic gasoil...

Astana wants to build Iran terminals.(Caspian/central Asia)(Brief Article)
June 25, 2004... Kazakhstan is considering building two new oil terminals and a 150,000t storage facility on Iran's Caspian coast to boost oil exports, says a Kazakh government source. Kazakh prime minister Danial Akhmetov discussed the project on 17 June at...

Belarus fuel oil exports set to drop.(Brief Article)
June 25, 2004... Fuel oil exports from Belarus are expected to drop in July, as supplies are diverted to the domestic market. State-owned refiner Belneftekhim establishes a monthly product export programme for the 170,000b/d Novopolotsk and 323,000b/d...

Yukos 'not for widows and orphans'.(Stock markets)
June 25, 2004... Yukos once again set the tone on the Russian stock market this week. Finance minister Alexei Kudrin's comments about a possible settlement deal (see p3), following President Vladimir Putin's assertion last week that the Kremlin has no...

Gazprom shores up market share.(Natural gas)(Gazprom Russian Joint Stock Co.)
June 25, 2004... Gazprom is banking on increased sales to the UK and to central Europe to maintain exports outside the FSU in the coming years. The Russian gas giant accounts for about a quarter of total EU gas imports and hopes to maintain this market...

FSU volume redistribution.(Natural gas)(FSU states)
June 25, 2004... Gas supplies to FSU states are set to increase overall this year, though there will be some reduction in volumes supplied to individual states (see table). Gazprom plans to decrease its sales to Ukraine by 2bn [m.sup.3]/yr this year and...

Gasoil premiums collapse.(Products market)(Brief Article)
June 25, 2004... * Prices were generally firmer in line with higher crude futures, led by strong gains in gasoline. But gasoil prices in the Mediterranean fell as imports from northern Europe flooded the market. * High-sulphur cracked fuel oil prices rose...

Products prices.(Products market)(Illustration)
June 25, 2004... Products prices 23 Jun $/t Chg on 16 Jun Baltic ports (fob) Russian Gasoil 316.96 - 318.96 +2 M-100 (straight-run) 140.02 - 142.02 +4...

Freight rates.(Products market)(Illustration)
June 25, 2004... Freight rates 23 Jun Rate WS ($/bl) Novorossiysk to Augusta (Italy) Clean products 30,000t 260 1.98 Fuel oil 30,000t...

Crude prices.(Crude market)(Illustration)
June 25, 2004... Crude prices 23 Jun $/bl Chg on 16 Jun diff to BFO NW Europe BFO (dated) 34.37-34.43 +0.11 -- Urals (cif) 31.07-31.13 -0.04 ...

Freight rates (capital shipbrokers).(Crude Market)(Illustration)
June 25, 2004... Freight rates (Capital Shipbrokers) 23 Jun Novorossiysk to Augusta (Italy) WS Rate ($/bl) Crude 130,000t 150 1.17 Crude 80,000t 240 1.87 Crude 60,000t ...

Urals eases on tepid demand.(Crude market)(Urals Foundry)(Brief Article)
June 25, 2004... * Crude prices eased from last week's highs to around $35/bl for August BFO, as concerns over Iraqi supplies eased. The return of limited Iraqi exports from the Mideast Gulf and reports that Iraqi Kirkuk is again being pumped to Ceyhan...

Russian refinery output.(Illustration)
June 25, 2004... Russian refinery output, May 2004 '000t Crude Crude throughput throughput May Company/refinery May '000 b/d ...

Netbacks.(Illustration)
June 25, 2004... Russian crude netbacks 23 Jun Primorsk Butinge Novo- rossiysk Urals (cif-fit) ($/bl) 31.10 31.10 31.25...

Astana wants BG Kashagan stake: Kazakhstan is stepping into the ring, just as BG's sale of its share in the Kashagan project looked set to go ahead.
June 18, 2004... The Kazakh government has made an 11th-hour bid to gain control of UK company BG's 16.67pc interest in the giant Kashagan crude oil project. BG has revealed that the Kazakh government wants the stake even though the UK firm's partners in...

Tarnished promise: BP is bullish about Russia. But uncertainty about Yukos means nothing can be taken for granted.(Editorial)
June 18, 2004... This week has offered a vivid illustration of the contradictions that surround Russia. On the one hand, BP's revised reserve estimate for the country has highlighted once again its vast potential, and on the other, speculation about whether...

Yukos reveals rescue plan proposals.(News)
June 18, 2004... Yukos management has revealed details of a plan devised to keep the embattled oil company afloat. This includes a provision for core shareholders--represented by the Menatep group--to reduce their stake in the company, something Yukos...

Gazprom offers Karachaganak gas 'solution'.(News)
June 18, 2004... Russia's Gazprom has come up with a proposal to allow the international consortium developing Kazakhstan's Karachaganak gas and condensate project to sell future output. At the moment, lack of sales options makes the development of gas...

Trutnev threatens licences.(News)
June 18, 2004... Licences for 10 oil and gas fields held by western and Russian companies could be under threat. Natural resources minister Yuri Trutnev, in perhaps his most dramatic announcement since he took the job in April, says officials may...

BP bumps up Russian reserves.(News)
June 18, 2004... BP has revised upwards its estimate for Russian crude reserves. The change is part of a new data series for global oil and gas in the latest edition of the major's Statistical Review of World Energy, which was published this week. The...

BP and AAR agree.(News)(Brief Article)
June 18, 2004... BP has agreed with the Russian share-holders of the TNK-BP joint venture to change the dates on which the latter will receive three tranches of BP shares in payment for their contribution to the joint venture. Alfa Group and Access/Renova...

Statoil seeks new markets for Azeri gas.(Caspian/central Asia)
June 18, 2004... Norway's Statoil plans to complete a marketing study this summer with a view to doubling planned gas shipments from Azerbaijan's Shakh-Deniz gas condensate field. The firm has a 25.5pc stake in the BP-led consortium developing Shakh-Deniz and...

Lukoil signs Uzbek gas deal.(Caspian/central Asia)
June 18, 2004... Russia's Lukoil has this week signed a $1bn production-sharing agreement (PSA) to develop the Khauzak-Shady-Kandym gas block in south Uzbekistan. But a question mark remains over the profitability of gas sales from the project, situated far...

Sakhalin I signs first gas sale deals.(Russia & CIS)(Brief Article)
June 18, 2004... The ExxonMobil-led group developing the Sakhalin I project in Russia's far east has signed deals to supply gas to local buyers. Sakhalin I partners have signed a letter of intent to supply gas to two power firms in the Khabarovsk region, with...

Surgut secures Talakan.(Russia & CIS)(Brief Article)
June 18, 2004... Natural resources minister Yuri Trutnev has upheld a decision to award the Talakan licence to Surgutneftegaz. The licence for the giant 124mn t (905mn bl) gas and condensate field in east Siberia should stay with Surgut because the ministry...

US ambassador worried about Yukos.(Russia & CIS)(Brief Article)
June 18, 2004... The Yukos case and the Sakhalin III project in Russia's far east are key litmus tests for US investment in Russia, US ambassador to Moscow Alexander Vershbow says. US investors are concerned about private property rights and are closely...

Gazprom keeps Belarus in sight.(Russia & CIS)(Brief Article)
June 18, 2004... Gazprom is trying to push ahead with plans to create a joint venture with Belarus pipeline operator Beltransgaz to operate the country's pipeline system. Gazprom vice-chairman Alexander Ryazanov says the company has agreed with Belarus to...

CPC awards expansion study contract.(Caspian/central Asia)(Caspian Pipeline Consortium)(Brief Article)
June 18, 2004... The Caspian Pipeline Consortium (CPC) has awarded a contract for front-end engineering and design work for expansion of the Tengiz-Novorossiysk pipeline. The contractors include US company Gulf Interstate Engineering, the Kazakh Institute of...

Nelson Resources gets $70mn loan.(Caspian/central Asia)(Brief Article)
June 18, 2004... Canadian company Nelson Resources, which produces crude in Kazakhstan, has received a $70mn four-year loan from investment bank BNP Paribas and trading firm Vitol. Nelson Resources plans to use the money to repay a loan it took out in late...

Looking ahead.(Brief Article)(Calendar)
June 18, 2004... * 1st Conference on Transportation of Crude and Products in CIS and Baltics. 22 June. Moscow. Metal-Courier. Tel: +38 056 7702921. marketing@metalcourier.com * Russian Petroleum and Gas Congress. 22-23 June. Moscow. Tel: +44 20 7596 5166...

Lukoil starts seismic in Kazakhstan.(Caspian/central Asia)(Brief Article)
June 18, 2004... Lukoil has started a 2D seismic survey in the Tyub-Karagan-Atash offshore block in the Kazakh sector of the Caspian Sea, which will cost over $4.2mn. The project is being jointly implemented with Kazakh state-owned company Kazmunaigaz. Work...

PetroKazakhstan plans buyback.(Caspian/central Asia)(Petro-Kazakhstan)(Brief Article)
June 18, 2004... Canadian independent Petro-Kazakhstan is offering to buy back 5pc of stock from shareholders, subject to a minimum price of $40/share in an offer open until 19 July. Analyst John Meyer of Numis brokerage says this is "a way of returning...

Tengizchevroil cuts CPC shipments.(Caspian/central Asia)(Brief Article)
June 18, 2004... The ChevronTexaco-led Tengizchevroil (TCO) consortium will reduce shipments along the Tengiz-Novorossiysk pipeline next month due to maintenance at the Tengiz field, according to a Caspian Pipeline Consortium (CPC) source. CPC had expected to...

PKN awaits pre-emption deadline.(Brief Article)
June 18, 2004... The Czech Republic's privatisation agency has told the International Oil Consortium (IOC), which owns a 49pc interest in the Czech Refining Company (CRC), that it has until early July to exercise a pre-emption right over a 51pc state-owned...

Yukos impasse prompts sell-off.(Stock markets)
June 18, 2004... The Russian share price downturn gained momentum after Yukos managers' apparent failure to reach a settlement with the Kremlin. In the absence of any clarification of the government's position, the market is speculating feverishly on...

Urals values slide as exports rise.(Exports and trade)
June 18, 2004... Rising exports of Russian oil from the Baltic have prompted a slump in the value of Urals in northwest Europe and could result in increasing volumes of the grade being shipped out of the region. Urals' discounts in northwest Europe were...

Ukraine grapples with crude problem.(Export and trade)
June 18, 2004... Russian exporters are likely to hike prices for crude deliveries to Ukraine, something that Kiev is ill-prepared for. Prices for Russian crude delivered to Ukraine have long been below world prices, with levels based on Russian domestic...

Gasoil in demand despite lower crude.(Products market)(Brief Article)
June 18, 2004... * Gasoil premiums to IPE futures in the Mediterranean remained strong, propped up by robust demand from the east of the region. The strength in southern Europe and a lack of buying interest in northwest Europe opened an arbitrage from the...

Products prices.(Products market)(Brief Article)(Illustration)
June 18, 2004... Products prices 16 Jun Baltic ports (fob) $/t Chg on 9 Jun Russian Gasoil 314.96-316.96 +8 M-100 (straight-run) 136.49-138.49 -7 M-100 (cracked) ...

Freight rates.(Products market)(Brief Article)
June 18, 2004... Freight rates 16 Jun Rate WS ($/bl) Novorossiysk to Augusta (Italy) Clean products 30,000t 260 ...

Crude prices.(Crude market)(Brief Article)(Illustration)
June 18, 2004... Crude prices 16 Jun NW Europe $/bl Chg on 9 Jun diff to BFO BFO (dated) 34.26-34.32 -0.33 - Urals (cif) 31.11-31.17 +0.57 -3.15...

Freight rates (Capital Shipbrokers).(Crude market)(Brief Article)(Illustration)
June 18, 2004... Freight rates (Capital Shipbrokers) 16 Jun Novorossiysk to Augusta (Italy) WS Rate ($/bl) Crude 130,000t 145 1.13 Crude 80,000t 215 ...

Urals firms on Iraq news.(Crude market)(Brief Article)
June 18, 2004... * Crude prices were rangebound with August BFO close to $35/bl. The market is considered well supplied with crude but there were mounting concerns over Iraqi crude supply. * Urals firmed slightly in the Mediterranean as traders digested...

Russia's crude export schedule outside the FSU, 3Q 2004.(Russian 3Q oil exports)(Illustration)
June 18, 2004... Russia's crude export schedule outside the FSU, 3Q 2004 '000t Exporter Novorossiysk Tuapse Odessa Total exports 8,595.0 1,162.0 480.0 Rosneft ...

Russian crude and condensate production, April 2004.(Russian oil production)(Illustration)
June 18, 2004... Russian crude and condensate production, April 2004 Apr Apr %chg '000t '000 b/d Mar 04 Vertically integrated oil companies...

Russian crude netbacks.(Netbacks)(Illustration)
June 18, 2004... Russian crude netbacks 16 Jun Primorsk Butinge Novo- rossiysk Urals (cif-fit) ($/bl) ...

Gazprom dims Kovykta chances: the gas giant's long-running obstruction of TNK-BP's efforts to launch the east Siberian gas project has taken a new turn.
June 11, 2004... Gazprom has suggested postponing development of the 1.9 trillion [m.sup.3] Kovykta gas field in east Siberia, claiming that there is no market for Russian gas in the Asia-Pacific region. The Russian gas giant's comments are a fresh blow for...

Unknown destination: the management of Yukos is sticking to its goals while the company's final fate is decided elsewhere.(Editorial)
June 11, 2004... Yukos last week flew a group of western journalists, including a representative of Argus, out to Russia to show that the company is still very much alive and kicking. It was a rare and welcome opportunity to take a close look at how...

Norsk Hydro angles for Shtokman role.(News)
June 11, 2004... Norway's Norsk Hydro is promoting itself as a partner for Gazprom in development of the 3 trillion [m.sup.3] Shtokman gas field in the Barents Sea. The two companies have agreed to set up a working group to negotiate Norsk Hydro's...

Other potential partners.(News)(Brief Article)
June 11, 2004... Gazprom has previously conducted discussions about the Shtokman gas field with ConocoPhillips, Total, Finnish company Fortum, Shell, BP and Norwegian firm Statoil. "We started talks with Gazprom last December about developing a liquefied...

Sibneft awaits share return.(Yukos)
June 11, 2004... Sibneft shareholders may have to wait up to five months for the return of a 57.5pc stake in the firm held by Yukos. In a victory for Sibneft, a Moscow court ruled last week to invalidate a share issue that Yukos used last year to gain a...

Cash drain claims refuted.(Yukos)
June 11, 2004... Embattled Yukos is taking steps to reassure the market following recent concerns about its cash position. Yukos published guidance on its year-to-date cash flow in a statement following the Moscow arbitration court's 26 May decision to...

Plan of defence.(Yukos)
June 11, 2004... Yukos is putting a brave face on its current Troubles--expounding its strategy for dealing with the tax claim against the firm and highlighting operational achievements in a series of presentations aimed primarily at western journalists in...

Operational goals.(Yukos)
June 11, 2004... Yukos' output growth this year will be driven by new fields like Priobskoye in the Khanty-Mansiysk autonomous district of west Siberia and South Vasyugan in the Tomsk region. The company plans to take Priobskoye output up to 420,000 b/d...

Kukes: 'give us a chance'.(Simon Kukes of Yukos)(Interview)
June 11, 2004... Yukos chief Simon Kukes says the firm is ready to contest both its $3.4bn tax bill and the cancellation of the share issue used to effect its merger with Sibneft. If the firm loses the former case, he adds, it can raise the money to pay the...

US energy official urges Sakhalin III rethink.(News)
June 11, 2004... US deputy energy secretary Kyle McSlarrow warned this week that Russia's decision to retender Sakhalin III blocks could deter foreign investment in Russia. McSlarrow said the original tenders for exploration licences for the...

New agency watches reserves.(News)
June 11, 2004... The head of Russia's federal energy agency, Sergei Oganesian, has started a campaign to monitor how companies develop their oil reserves. He is concerned that rapidly rising output encouraged by high oil prices means there is a risk that...

AIOC will keep using Baku-Supsa.(News)
June 11, 2004... The BP-led AIOC consortium, which is developing the Azeri-Chirag-Guneshli (ACG) offshore block in Azerbaijan, plans to continue using the Baku-Supsa crude pipeline even after the 1mn b/d Baku-Tbilisi-Ceyhan (BTC) route has been completed. ...

Primorsk boost will hit Butinge shipments.(News)
June 11, 2004... Plans by Russian pipeline operator Transneft to increase the throughput of the Baltic Pipeline System (BPS) feeding the port of Primorsk will cause reduced deliveries to Lithuania's Butinge, and could also hit shipments to Poland's Gdansk....

Russian crude output passes 9mn b/d.(Russia & CIS)(Brief Article)
June 11, 2004... Russia's crude oil and gas condensate output hit 9.05mn b/d (38.4mn t) in May, up by 74,000 b/d on April, according to preliminary data from the energy ministry. January-May production reached 8.92mn b/d, up by 10pc on the same period last...

Interros blocks Rusia share issue.(Russia & CIS)(Brief Article)
June 11, 2004... Vladimir Potanin's Interros Group has blocked an additional share issue in Rusia Petroleum, in which it holds a 25.82pc share. Rusia had planned to use the cash raised for development of the 1.9 trillion [m.sup.3] Kovykta gas field in east...

Gazprom signs deal with Belarus.(Russia & CIS)(Brief Article)
June 11, 2004... Gazprom has finally ended a stand-off with Belarus over a gas supply and transit deal. The Russian firm will supply 10.2bn [m.sup.3] of gas at $46.68/.000[m.sup.3] this year, and will pay 75 cents/'000[m.sup.3] for pumping gas through...