FSU Energy articles from March 2001

FSU Energy archives from March 2001

Transneft trumpets BPS progress.(Baltic Pipeline System)(Brief Article)
March 30, 2001... They said it would never happen, but Russia's Baltic Pipeline System is fast becoming reality Russian pipeline operator Transneft is pulling out all the stops to hit a yearend target for first loading of crude from a new oil terminal at...

Forget the past.(Brief Article)
March 30, 2001... The US administration's current anti-Russia stance makes George Bush look tough. But it also makes little real sense One of the criticisms levelled most frequently against President George Bush in the run-up to last year's US presidential...

CPC starts filling, but obstacles remain.(Caspian Pipeline Consortium)(Brief Article)
March 30, 2001... The Caspian Pipeline Consortium (CPC) formally began filling its 600,000 b/d Tengiz-Novorossiysk link with crude this week, paving the way for the start of new exports from the Caspian in June. Kazakh prime minister Kasymzhomart Tokayev,...

Transneft begins building Ukraine bypass.(Brief Article)
March 30, 2001... Transneft has officially launched construction of a $250mn bypass pipeline that will allow it to pump Russian oil to Novorossiysk without passing through Ukraine. During a visit to the construction site attended by Argus last week, Transneft...

TNK claims new Kovykta success.(Tyumen Oil (TNK))(Brief Article)
March 30, 2001... Russia's Tyumen Oil (TNK) claims to have reached agreement with investment group Rinko on purchasing the latter's 7.7pc stake in the BP-led Rusia Petroleum joint venture. The sale would boost TNK's stake in Rusia -- operator of the 1.4...

Khristenko rules out export cut.(Russian deputy premier Viktor Khristenko)(Brief Article)
March 30, 2001... Russian deputy premier Viktor Khristenko, who chairs the government commission on pipeline exports, told Argus. last week that he does not expect any reduction in crude exports in the second quarter, contradicting Russia's recent pledge to...

Ukraine claims Caspian transit to start next year.(Brief Article)
March 30, 2001... Ukraine's deputy energy minister Olexander Sverdlov reiterated last week the country's plans to complete the 667km Pivdenne (Odessa)--Brody pipeline by August. Ukraine hopes to use the line to ship Caspian crude to buyers in central and...

PSA investors say Gref is too ambitious.(production-sharing agreement (PSA) reform)(Brief Article)
March 30, 2001... Western investors have reiterated their concern about the slow pace of production-sharing agreement (PSA) reform in Russia, as trade and economic development minister German Gref gears up to deliver his PSA action plan. The plan, due to...

Wintershall sees no threat in Ruhrgas/Gazprom link.(Herbert Detharding,)(Brief Article)
March 30, 2001... Herbert Detharding, chairman of German oil and gas firm Wintershall, last week reiterated the firm's commitment to its strategic partnership with Gazprom. He stressed it remains in place, despite growing links between Gazprom and...

Itera boss `tired of questions' about Gazprom.(Igor Makarov)(Brief Article)(Interview)
March 30, 2001... In 10 years, controversial Russian gas trader Itera has emerged from nowhere to become one of Europe's biggest gas companies, valued by analysts at $10bn. Its unprecedented success has been ascribed to a "special relationship" with Gazprom....

Russia/CIS.(Sibneft)(Brief Article)(Statistical Data Included)
March 30, 2001... Sibneft signs $175mn loan Russia's Sibneft has secured a $175mn loan to help it meet an ambitious 20mn t (400.,000 b/d) production forecast for 2001, a 16pc increase on last year's output (FSUE, 16 March, p11). Sibneft, which is already...

Caspian/central Asia.(Brief Article)(Statistical Data Included)
March 30, 2001... Socar seeks gas buyers Azeri state-owned Socar is seeking new buyers for its gas. This follows the signing of an agreement to deliver 6.6bn [m.sup.3]/yr of Shakh-Deniz gas to Turkey by 2018 (FSUE, 16 March, p1). Socar is awaiting Iran's...

Correction.
March 30, 2001... In last week's 2Q crude export schedule (pp14-15), the column headings Lithuania, Odessa, Ukraine, Res. 1130 should have read Lithuania (Butinge), Lithuania (Mazeikiu Nafta), Ukraine (Odessa) and Ukraine (Brody). Total crude exports under...

Central/eastern Europe.(Brief Article)
March 30, 2001... Bulgaria seeks foreign gas investment Bulgaria plans to attract foreign investors for six regional gas distribution firms, which it hopes to establish soon, the government has announced. The establishment of the new companies will follow...

Lukoil GAAP results small comfort.(Statistical Data Included)
March 30, 2001... Russian shares nudged lower in a volatile week for international stock markets, as fresh profit warnings from US technology companies wiped off any early gains around the globe. The Russian Trading System (RTS) index stayed above the key...

Lukoil finally fulfils GAAP pledge.(Brief Article)(Statistical Data Included)
March 30, 2001... Russian oil giant Lukoil published its long-awaited US GAAP-standard financial results for 1998 and 1999 this week, boosting foreign investor confidence and paving the way for a $150mn EBRD loan. The company's net income in 1999 was...

Company news.
March 30, 2001... * Nafta Polska, the government body overseeing Poland's oil industry privatisation, intends to hold parallel talks with parties bidding for a 75pc stake in Poland's 90,000 b/d Gdansk refinery. The state holding decided not to grant...

In brief.(Brief Article)(Statistical Data Included)
March 30, 2001... VSNK reveals strategy The board of directors of Yukos subsidiary East Siberian Oil (VSNK) has approved the company's strategy for 2001-2005, including a plan for development of the Yurubcheno-Takhomskay field. The field could contain as...

Feedstock buyers return for straight-run.(includes multiple articles)(Brief Article)(Statistical Data Included)
March 30, 2001... * Bunker demand and a revival of refiner interest bolstered cracked and straight-run fuel oil. Flooding along the Rhine and expectations of tighter Black Sea supplies led to increased prompt demand for gasoil. * A switch by refiners to...

Opec impact filters through.(Organization of Petroleum Exporting Countries)(Brief Article)
March 30, 2001... * Outright Urals prices rose by over $1.20/bl in both northwest Europe and the Mediterranean. supported by Opec's 1 mn b/d output cut. Seaborne Urals discounts held firm initially before coming under pressure from weaker sour margins. *...

Russian refinery output.
March 30, 2001... [TABULAR DATA NOT REPRODUCIBLE IN ASCII]

Russia promises too much.(Reducing oil exports)(Brief Article)(Statistical Data Included)
March 23, 2001... Moscow has told Opec it will cut oil exports. But it may have promised more than it can deliver Russia has pledged to join Opec's efforts to cut world oil supply to support prices. But Moscow's promise to reduce exports in the second...

A nice gesture (part 2).(Russia's oil market)(Brief Article)
March 23, 2001... Opec wants FSU states on its side. But they have their own agenda Opec's courtship of Russia stepped up a gear at last week's meeting of the oil producers' organisation in Vienna. Russia, which went to Opec as an observer, found itself...

Conoco outlines far north export plans.(Brief Article)
March 23, 2001... US firm Conoco has outlined details of plans to export crude from its Northern Territories joint venture in Russia's far north with partner Lukoil. But the proposals could bring the company into conflict with pipeline operator Transneft and...

US firms look to Iran.(Brief Article)
March 23, 2001... US companies continue to mull swapping Caspian oil with Iran, despite the US government's recent extension of sanctions against the country. Iran itself remains as keen as ever to boost swap shipments with its neighbours. A senior...

Khristenko tries to boost export transparency.(Viktor Khristenko)(Brief Article)(Statistical Data Included)
March 23, 2001... Russia's second quarter-crude export schedule, finalised this week, envisages exports of 2.54mn b/d (32.05mn t) to non-CIS destinations (see pp14-15). Russian companies are due to ship 2.21mn b/d of this, with the balance made up by transit...

Ukrainian refiners cry foul.(legislation affecting profitability)(Brief Article)
March 23, 2001... Russian and Kazakh investors in Ukraine's refining sector last week complained to the country's president, Leonid Kuchma, about legislation which undermines the profitability of domestic plants. In a letter to the president, the chief...

Gazprom rejects audit demand.(Brief Article)
March 23, 2001... The board of Gazprom this week turned down minority shareholder demands for an independent audit of the Russian gas giant's controversial links with trader Itera. Minority shareholders, represented by former finance minister and...

Vyakhirev mounts rearguard action.(Rem Vyakhirev)(Brief Article)
March 23, 2001... Gazprom chief executive Rem Vyakhirev has this month made several public statements about the future of the firm. He warned of dire consequences if plans for the restructuring of Gazprom -- and, by implication, his own removal as its head --...

Shell under threat of losing Salym.(Brief Article)
March 23, 2001... The Khanty-Mansiysk regional government in western Siberia has threatened to withdraw Shell's licence for the 875mn bl Salym group of fields. "It looks like Shell just does not want to develop the field," says Vladimir Karasyov,...

Ukraine fights import dependency.(Brief Article)
March 23, 2001... Embattled Ukrainian president Leonid Kuchma has called for the country to consume more domestically produced gas to reduce imports. Speaking in Kiev earlier this month, Kuchma's call for reduced import dependency follows a warning from...

Energy: a politically charged issue.(Brief Article)
March 23, 2001... Energy is a politically charged issue in Ukraine and has become inextricably linked with mounting opposition to President Leonid Kuchma, which has led to street battles between demonstrators and police in Kiev earlier this month. The...

Ukraine gears up for power imports.(Brief Article)
March 23, 2001... Kiev is gearing up to increase power imports from Russia. Russia has offered to supply electricity at 1.44 [cts.] /kWh, around half the cost of production at Ukrainian power stations. Former Ukrainian energy minister Sergey Ermilov said in...

Kalyuzhny: Iran is ready to compromise.(Viktor Kalyuzhny)(Caspian Sea territorial division)(Brief Article)
March 23, 2001... In an interview with Argus Russia's presidential envoy to the Caspian region, Viktor Kalyuzhny, comments on the results of last week's talks with Iran and Kazakhstan. He also outlines the agenda for the summit of Caspian littoral states in...

Russia pushes for Caspian resolution.(Caspian Sea territorial division)(Brief Article)
March 23, 2001... Russia hopes to sign a joint declaration on the Caspian status at the planned summit of five littoral states in Turkmenistan next month. Russia's presidential envoy to the region, Viktor Kalyuzhny, tells Argus Moscow expects the declaration...

Russia/CIS.(petroleum industry management/agreements)(Brief Article)
March 23, 2001... Transneft claims BPS progress Russian pipeline operator Transneft is making progress with the Baltic Pipeline System (BPS), connecting oil firms in the far north Timan-Pechora region with a new oil terminal at Primorsk on the Baltic....

Val Gamburtseva under investigation.(Brief Article)
March 23, 2001... Russia's general prosecutor's office has begun an investigation into the recent decision to grant a licence for the 1.4bn bl Val Gamburtseva field in the far north to local firm Northern Oil. Industry insiders say the probe was initiated by...

Caspian/Central Asia.(Production statistics)(Brief Article)(Statistical Data Included)
March 23, 2001... Socar to load next Azeri Light in May Azeri state-owned Socar is to load its next 135,000t (1mn bl) cargo of Azeri Light from Supsa in May. A tender for the cargo -- Socar's third this year -- will be issued over the next fortnight. This...

Baltics.(Gasoline and jet from Lithuania)(Brief Article)
March 23, 2001... Klaipeda to handle gasoline and jet Lithuania's Klaipeda oil terminal is due to start handling gasoline and jet from next month, reducing fuel oil and gasoil exports and ending VGO shipments altogether. Around 50,000t of high-octane...

Central/eastern Europe.(natural gas)(Brief Article)
March 23, 2001... Russia/Poland to finalise bypass plan Russia and Poland will soon decide on the route of a 40-60bn [m.sup.3]/yr gas pipeline through Poland to Slovakia, Polish economics minister Janusz Steinhoff said last week in Moscow. The line is...

RTS shows signs of resilience.(Russian Trading System)(Statistical Data Included)
March 23, 2001... Russian equities staged a determined attempt to shake off the turmoil on global markets, ending the week well above the 170 points barrier seen as a key resistance level. Investors held on to their Russian blue chip stocks despite bearish...

Slavneft targets Ukraine.(Brief Article)
March 23, 2001... Russian-Belarus joint venture Slavneft plans to set up a Ukrainian marketing subsidiary to sell products from its 323,000 b/d Mozyr refinery. But it will face competition from local importers, who enjoy special tax privileges. Mozyr is...

Company news.(includes multiple articles)(Brief Article)
March 23, 2001... * UK company JKX has fought off a attempt to oust it from Ukrainian joint venture Poltava Petroleum Company (PCC). Ukraine's state property fund, which holds a quarter share of PCC, attempted to expel JKX subsidiary JP Kenny Exploration and...

TNK gets ready for bonds.(Tyumen Oil )(Brief Article)
March 23, 2001... Russia's Tyumen Oil (TNK) will start placing Rbs3bn of four-year corporate bonds on Moscow's Interbank Currency Exchange (Micex) on 28 March. The bonds will carry a 12pc coupon paid semi-annually. The underwriter is ING Bank, with Russia's...

No respite for Russian fuel oil.(Brief Article)(Statistical Data Included)
March 23, 2001... * Outright prices for Russian cracked and straight-run fuel oil remained under strong pressure. But the gasoil market received some support from colder weather across northwest Europe. * A stream of fresh fuel oil cargoes out of the...

Opec cut is good news for Urals.(Brief Article)(Statistical Data Included)
March 23, 2001... * Opec's 1mn b/d output cut lent some support to Urals but outright prices still slipped. Seaborne prices dropped by 30-35 [cts.]/bl, but the outlook is bullish for the coming months once the Opec cut starts hitting physical markets. *...

Russian 2Q oil exports.
March 23, 2001... [TABULAR DATA NOT REPRODUCIBLE IN ASCII]

Netbacks.
March 23, 2001... [TABULAR DATA NOT REPRODUCIBLE IN ASCII] [GRAPH OMITTED]

Shakh Deniz deal signed.(Azerbaijan, Turkey in gas supply deal)(Brief Article)
March 16, 2001... Azerbaijan and Turkey have struck a gas supply deal. But doubts remain about Turkish demand Azerbaijan and Turkey this week signed a long-delayed contract for gas deliveries from Azerbaijan's offshore Shakh Deniz field in the Caspian...

Strategic vision.(legal boundaries of Caspian Sea)(Brief Article)
March 16, 2001... Russia is playing a long game in the Caspian. But it knows what it wants This week's joint statement by Russia and Iran saying that there can be no division of the Caspian until the sea's legal status is defined appears to fly in the...

Moscow and Tehran cosy up.(united on position regarding Caspian Sea boundaries)(Brief Article)
March 16, 2001... Russia and Iran this week issued a joint statement saying they will not recognise "any borders on the Caspian Sea until the legal regime for the sea is improved". The statement came after a meeting between Iran's president Mohammad...

Gazprom talks up Blue Stream.(Russia-Turkey gas pipe line project)(Brief Article)
March 16, 2001... Gazprom chairman Rem Vyakhirev this week visited the construction site at the start of the sub-sea section of the $3.2bn Blue Stream gas pipeline from Russia to Turkey. Vyakhirev's visit to Dzhubga, where the 396km section will start,...

Iran/Kazakh swap deal off again.(crude swaps suspended)(Brief Article)
March 16, 2001... Iran's NIOC has suspended plans for crude swaps with Kazakhstan, ostensibly because of problems with the high mercaptan content in Kazakh crude, which makes it incompatible with Iran's refineries. The move is a blow to Iran's ambitions to...

Rosneft turns its gaze on Nigeria.(Brief Article)
March 16, 2001... Russia's state-owned Rosneft last week signed a memorandum of understanding with Nigeria's state-owned NNPC on joint development of oil and gas blocks in the west African country. The memorandum was signed during a recent visit to Moscow by...

Export commission meeting postponed.(crude exports held up)(Brief Article)
March 16, 2001... A vital meeting of Russia's government export commission, which was due to take place on 14 March, has been postponed until 16 March. The news was a major blow for exporters trying to ship extra oil under the first-quarter export programme....

FSU states go to Opec.(Russia, Kazakhstan observe Organisation of Petrolem Exporting Countries meeting)(Brief Article)
March 16, 2001... Russia will send deputy energy minister Alexei Miller as an observer to this week's Opec meeting in Vienna. Kazakhstan will also send an observer for the first time, says a spokesman for the oil producers' organisation. The FSU states' rising...

Oil firms take on Nenets governor.(Northern Oil license disputed)(Brief Article)
March 16, 2001... Leading Russian oil firms Lukoil, Sibneft and Surgutneftegaz have challenged the granting of a licence for the 1.4bn bl Val Gamburtseva field in the far north to local firm Northern Oil. Northern Oil operates a number of fields in Nenets,...

Lukoil licences under fire.(Brief Article)
March 16, 2001... The Nenets regional government is considering withdrawing licences held by Arkhangelskgeoldobycha (AGD), a local oil firm controlled by Lukoil. The threat appears to be part of a wider battle between Lukoil and the regional government (see...

Gazprom/Eni eye Caspian co-operation.(Brief Article)
March 16, 2001... Gazprom sources have confirmed recent reports that the Russian giant is soon to sign an agreement with Italian energy firm Eni on oil and gas projects in the Caspian region. The agreement is expected to cover the onshore north Astrakhan field...

Transneft claims victory in dispute.(tariff payment)(Brief Article)
March 16, 2001... Russian pipeline operator Transneft claims to have settled a long-running row with oil firms over its demand for 100pc pre-payment of pipeline tariffs (FSUE, 9 February, p4). The state-owned pipeline operator introduced the requirement...

Kazakh crude heads for Butinge.(Brief Article)
March 16, 2001... Lithuania's Mazeikiu Nafta (MN), operated by US firm Williams, plans to load a 100,000t tanker of Kazakh crude at its Butinge terminal in the first 10 days of next month. This will be the first time Kazakh oil has been shipped through the...

AIOC head outlines Baku-Ceyhan plans.(Brief Article)
March 16, 2001... The proposed Baku-Ceyhan pipeline is rapidly gaining favour with western oil companies as a main export route for future Caspian crude output. BP, leader of the Azerbaijan International Oil Company (AIOC) consortium, recently said the...

Russia & CIS.(Brief Article)
March 16, 2001... Russia delays Lukoil sale Russian deputy premier Alexei Kudrin announced that the government has dropped plans to sell a 6pc state stake in Lukoil in the near future, because of unfavourable economic circumstances. Prime minister Mikhail...

Mol bids for Rafineria Gdanska.(Brief Article)
March 16, 2001... Hungarian oil and gas firm Mol submitted one of only two formal bids for a 75pc stake in Poland's Gdansk refinery. Majority ownership of the 90,000 b/d plant and its 265 retail outlets throughout Poland would give the firm strategic entry...

Caspian/central Asia.(Brief Article)
March 16, 2001... Agip announces new Kashagan find Italy's Agip has announced that the Offshore Kazakhstan International Operating Company (Okioc) has detected hydrocarbons in its second test well at the west Kashagan field in the Kazakh sector of the...

Baltics.(Brief Article)
March 16, 2001... Mazeikiu Nafta mops up Lithuanian oil firm Mazeikiu Nafta (MN) was due to recommence loadings at its Butinge oil terminal this week, after a minor oil spill last week. Loading was suspended on 6 March after 2.94t (21 bl) of crude was...

Global share slump catches RTS.(Statistical Data Included)
March 16, 2001... Heavy losses on global equity markets forced Russian shares to close lower, prompting concerns that recent gains could be under threat. The Russian Trading System (RTS) index lost 10 points to close at just over 167 points, and well down from...

Gazprom promises transparency.(Brief Article)
March 16, 2001... Russia's audit chamber says Gazprom has pledged to improve transparency in response to criticism of the company's operations following detailed investigations by the chamber. The chamber says the proposed measures are endorsed by the...

Sibneft hikes output forecast.(Brief Article)
March 16, 2001... Russia's Sibneft has hiked its production forecast for this year by 3.5pc on previous estimates to 20mn t (400,000 b/d). This is a 16pc increase on last year, making Sibneft the country's fastest-growing oil firm in terms of output. The...

Tatneft bid for vertical integration fails.(Brief Article)
March 16, 2001... Russia's regional oil firm Tatneft has failed in a bid to take control of the Nizhnekamskneftekhim 120,000 b/d refinery and petrochemical complex. Taking control of the plant would have allowed Tatneft to realise its ambition of becoming...

Fuel oil tumbles as storage fills.(Brief Article)(Statistical Data Included)
March 16, 2001... * A glut of M-100 fuel oil hammered down prices in northwest Europe. Warmer weather limited demand for heating oil. putting Russian gasoil under renewed pressure. * Lack of storage in the ARA region stopped bunker blenders grabbing...

Sour refining margins revive.(Brief Article)(Statistical Data Included)
March 16, 2001... * Outright Urals prices dropped by around $1.60/bl despite expectations of an Opec output cut. Prices dropped by $1/bl midweek on news of a heavy US stockbuild. * Urals fared better than other grades as the end of European refinery...

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

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

Exporters pull out all the stops.(Russian crude oil)(Brief Article)(Statistical Data Included)
March 9, 2001... Russia is striving to push out as much crude as possible. But a saturated market is struggling to cope FSU crude exports could reach record highs this month as Russian oil companies race to push out enough crude to meet a first-quarter...

Off the rails.(Brief Article)
March 9, 2001... Reform of rail tariffs is hardly a glamorous issue. But it will be a key test of the Putin regime Russia's oil industry breathed a sigh of relief earlier this year, when the government announced plans to hand control of rail tariffs from...

States sign Baku-Ceyhan agreement.(Brief Article)
March 9, 2001... The governments of Azerbaijan, Georgia, Kazakhstan, and Turkey last week signed a memorandum of understanding on the Baku-Ceyhan oil pipeline in Kazakh capital Astana. The US has hailed the signing as the latest in a series of positive...

Eni says Baku-Ceyhan best for Kashagan.(Brief Article)
March 9, 2001... Italian oil giant Eni, which recently won operatorship of Kazakhstan's huge Kashagan project, says it favours the Baku-Ceyhan pipeline as an export route for future output. The firm believes potentially high costs and political risk will...

Fydorov comes under attack again.(Boris Fydorov)(Brief Article)
March 9, 2001... Russian investment group UFG has denied press reports that it is under police investigation over alleged involvement in "grey" trade of Gazprom shares. The company says the claim is the latest step in a smear campaign directed against...

Hungary's pet-chem puzzle deepens.(Brief Article)
March 9, 2001... Russian petro-chemical firm Sibur is continuing its efforts to establish a strategic partnership with its Hungarian counterpart Borsodchem, despite other shareholders' attempts to take a controlling stake in this company. Sibur has an...

Slavneft initials Suba deal in Iraq.(Brief Article)
March 9, 2001... Russian-Belarus joint venture Slavneft has initialled an agreement covering development of the 1bn bl Suba field in Iraq. Slavneft says a final agreement will be signed early next month, but that it will only work within the framework of UN...

Exporters attack Khristenko.(Viktor Kristenko)(Brief Article)
March 9, 2001... Oil exporters have have accused deputy-premier Viktor Khristenko's of mismanaging oil exports, resulting in disruption to oil flows. Pipeline operator Transneft was forced to limit the amount of crude accepted into its system to just...

Fuel oil and gasoline exports increase.(Brief Article)
March 9, 2001... FSU seaborne product exports rose in February, climbing to over 4.6mn t as a result of sharply increased shipments from the region's Baltic ports. The overall figures were boosted by both increased Russian fuel oil export quotas, and traders...

Government set to balance rail tariffs.(Brief Article)
March 9, 2001... The Russian government plans to introduce a single tariff for domestic and export shipments of oil and products from 1 April. Tariffs for domestic shipments will rise by 21pc from 1 April, while export tariffs will be cut to bring them in...