FSU Energy articles from May 2001

FSU Energy archives from May 2001

CPC edges forward.(Brief Article)
May 25, 2001... Oil is flowing into CPC again. But there are obstacles to overcome before the line can start exporting in earnest The Caspian Pipeline Consortium (CPC) admitted this week that it will have to postpone the first crude shipment from the...

Test of strength.(Gazprom Russian Joint Stock Co.)(Brief Article)
May 25, 2001... A showdown is looming over the future of Gazprom. This is a battle the Russian government needs to win One way or another, the fate of Gazprom chief Rem Vyakhirev will be decided at a board meeting of the gas giant due to take place on 30...

TNK closes in on Rusia stake.(Tyumenneft)(Brief Article)
May 25, 2001... Shareholders in the BP-led Rusia Petroleum joint venture -- operator of the giant Kovykta gas field in east Siberia -- have approved the issue of over 6mn new shares that will allow Tyumen Oil (TNK) to boost its stake in the venture to just...

Alfa Group faces Sidanco ultimatum.(Brief Article)
May 25, 2001... Novy Petroleum, an affiliate of Alfa Group -- co-owner of Tyumen Oil (TNK) -- was due to hold a board meeting on 24 May to decide on whether to accept the terms of the TNK/Sidanco settlement. Alfa and fellow TNK shareholder Access/Renova...

Rivals vie for Rinko's Rusia holding.(Rosinvestneft)(Brief Article)
May 25, 2001... The fate of an 8.6pc stake in Rusia Petroleum controlled by Rosinvestneft (Rinko) -- an acquisitive investment company owned by businessman Vitaly Mashitsky -- remains in the balance. Tyumen Oil (TNK) has already signalled its interest in the...

Dispute halts Polish refinery sale.(PKN Orlen)(Brief Article)
May 25, 2001... The Polish government's plans for the sale of a 75pc stake in the country's 90,000 b/d Gdansk refinery have been dealt a blow by the resignation of the management at state holding company Nafta Polska. The three-member management team...

Alyans eyes upstream expansion.(Brief Article)
May 25, 2001... Oil investment group Alyans is planning to bid in an August tender for oil fields in Russia's Khanty-Mansiysk district (FSUE, 18 May, p4). The move is part of the company's strategy to develop an upstream base to complement its existing...

Duma approves direct sharing amendment.(Brief Article)
May 25, 2001... Russia's Duma has approved an amendment to the country's production-sharing agreement (PSA) law, allowing direct sharing. The current version of the PSA law divides crude produced at PSA projects into "compensation" and "profit" oil. The...

Blue Stream scandal deepens.(Brief Article)
May 25, 2001... Gazprom's deputy chairman Yuri Komarov visited Turkey last week to deny allegations that the Gazprom/Eni Blue Stream gas pipeline has run into problems. He also denied Russian involvement in a kickback scandal that has engulfed the project in...

Eni/Gazprom begin Astrakhan project.(Brief Article)
May 25, 2001... Italian energy giant Eni and Gazprom construction arm Stroitransgaz this week signed a framework agreement on the joint exploration and development of the 1,800 [km.sup.2] North Astrakhan field in the Russian sector of the Caspian Sea. ...

Government approves UES plan.(Brief Article)
May 25, 2001... Moscow last week approved a plan to restructure power monopoly UES, based on proposals made by its head Anatoly Chubais. His reforms have been criticised by the industrial lobby and regional authorities as they envisage UES retaining its...

Small producers suffer export setback.(Brief Article)
May 25, 2001... Russia's energy ministry last week suspended crude exports under the methodology for allocating additional exports for small and medium-size producers. The suspension follows pressure from Russia's anti-monopoly ministry, which was in turn...

Pipeline auctions take shape.(Brief Article)
May 25, 2001... Russia's energy ministry last week issued a draft government resolution to regulate the system for auctioning spare space in crude export pipelines. Auctions will be organised by the energy ministry's central dispatch unit (CDU). But...

Novo Jun loading schedule.(Illustration)
May 25, 2001... Novo Jun loading schedule '000t Date Supplier/exporter Volume Berth 1 1-2 Yukos 140 3-4 Lukoil ...

Alfa-Eko seeks foothold in Iraq.(Brief Article)
May 25, 2001... Russian commodity trader Alfa-Eko has struck a co-operation agreement with Gazprom construction arm Stroitransgaz to build a pipeline to deliver heavy Kirkuk crude from Iraq to the Mediterranean through the Syrian port of Banias. At the...

Russia & CIS.(Tyumenneft)(Brief Article)
May 25, 2001... Northern Oil starts work Northern Oil, winner of the recent controversial tender for the 1.4bn bl Val Gamburtseva field in Russia's far north, has started development work. By the end of the year it hopes to prepare and approve a...

Caspian/central Asia.(Bechtel Group Inc.)(Statistical Data Included)
May 25, 2001... Bechtel gets Baku-Ceyhan job US service firm Bechtel has won a tender to carry out detailed engineering for the Baku-Tbilisi-Ceyhan (BTC) pipeline on Azeri and Georgian territory. Baku-Ceyhan shareholders will make a final decision on...

Baltics.(Brief Article)(Statistical Data Included)
May 25, 2001... Lukoil boss postpones Lithuania trip Lukoil president Vagit Alekperov this week postponed a visit to Lithuania to discuss long-term crude supplies and the possibility of his company buying a state-owned stake in oil firm Mazeikiu Nafta...

Central/eastern Europe.(Germany's Ruhrgas and Gaz de France (GdF))(Brief Article)
May 25, 2001... Independent traders set up in Serbia A group of 50 Yugoslav oil traders with links to independent filling stations have established a new company to import crude into Yugoslavia. The group aims to import 50,000t of light crudes from Syria...

Restructuring plans undermine UES.(Russian Trading System (RTS))(Statistical Data Included)
May 25, 2001... Russian equities made healthy gains amid high trading volumes, with investors particularly keen to buy up energy stocks. This helped the Russian Trading System (RTS) index break through the psychologically important 200 points barrier for the...

AIP struggles in Kazakhstan.(American International Petroleum Corp.)(Brief Article)
May 25, 2001... US independent American International Petroleum (ALP) lost $25.4mn last year, two years after making an ambitious attempt to break into the Caspian energy sector. In 1999, the company announced plans to invest over $100mn in Kazakhstan....

Company news.(Sibneft Oil)(Brief Article)(Statistical Data Included)
May 25, 2001... Sibneft boosts reserves Sibneft's proven oil reserves increased to around 4.64bn bl last year, according to an audit by international engineers Miller and Lents. The rise follows an acceleration in drilling and the increased use of...

Straight-run in demand again.(Brief Article)(Statistical Data Included)
May 25, 2001... * High crude prices prompted European refiners to turn to straight-nm fuel oil as a feedstock This boosted the premium for Baltic M-100 straight-run over cracked fuel oil (see graph). A lack of prompt straight-nm in northwest Europe, and...

Urals discounts under pressure.(Brief Article)(Illustration)
May 25, 2001... * Urals rose by over $1/bl early in the week largely tracking dated Brent, which was in turn driven by soaring gasoline prices in the US. But outright prices slipped slightly at the end of the week because of indications of a strong build in...

Russian rail data.(Brief Article)(Abstract)(Illustration)
May 25, 2001... Russian rail data Russian rail exports/imports, April 2001 Crude % chg 000 b/d Mar Overland Armenia Azerbaijan...

Netbacks.(Illustration)
May 25, 2001... Netbacks Russian crude netbacks 23 May Ventspils Butinge Novorossiysk Urals (cif-fit) ($/bl) 27.97 27.97 27.42 Urals (cif-fit) ($/t) 204.18...

Ukraine signs up for Turkmen gas.(Brief Article)
May 18, 2001... Ukraine hopes to cut its reliance on Russia by buying gas from Turkmenistan. But it needs to pay its bills The presidents of Ukraine and Turkmenistan this week signed a five-year gas supply contract, under which Turkmenistan will supply...

The $64mn question.(Brief Article)
May 18, 2001... A workable PSA regime is seen as the only way forward for western oil firms in Russia. But the process is stalled A viable PSA framework has been seen as a pre-requisite for security of investment in Russia since the mid 'nineties....

Russian firms welcome Venezuela's debut.(Brief Article)
May 18, 2001... Russian oil firms are gearing up to establish closer ties with Venezuela following a visit to Moscow this week by Venezuelan president Hugo Chavez. The two countries have agreed to collaborate in monitoring oil prices, while Russian trader...

Moscow closes Belarus loophole.(Brief Article)
May 18, 2001... Russia's state customs committee (GTK) is pushing ahead with new regulations for crude exports to destinations in the CIS customs union. The GTK has already drafted a resolution to impose a 22 [European Dollar]/t ($2.66/bl) export duty on...

Shell's Salym licence in question.(Brief Article)
May 18, 2001... The regional government of Khanty-Mansiysk in western Siberia is threatening to cancel Shell's licence to develop the 120mn t Salym field. The regional licence commission is due to meet on 5 June to discuss the issue, Khanty-Mansiysk deputy...

Gazprom behind attacks on UFG.(Brief Article)
May 18, 2001... Russian gas monopoly Gazprom may be the driving force in an offensive against UFG, the investment group owned by Gazprom board member Boris Fyodorov. Earlier this year, groups of Gazprom's minority shareholders -- whose interests...

Turkey runs up gas bill.(Brief Article)
May 18, 2001... Turkish gas pipeline firm Botas cannot pay for Russian gas imports, say Turkish sources. The firm is owed $1.05bn for gas by Turkish power firm Teas, but given the country's financial crisis, it is unlikely to be paid. Botas owes Russia...

Preliminary study on Baku-Ceyhan complete.(British Petroleum Company PLC)(Brief Article)
May 18, 2001... A basic engineering study on the Baku-Tbilisi-Ceyhan pipeline is complete, Azeri state-owned Socar and BP announced this week. A committee managing the project met in Baku on 15 May to discuss the study. It concluded that the project "meets...

Oil firms gear up to bid for Tuapse stake.(Brief Article)
May 18, 2001... Russian oil firms are gearing up to bid for a stake in the Black Sea port of Tuapse, a key Russian outlet for exports of lucrative Siberian Light crude. The federal property fund -- which has a 49pc holding -- plans to sell a 24pc stake in...

In brief.(Caspian Pipeline Consortium)(Brief Article)
May 18, 2001... CPC wants Russian government help Caspian Pipeline Consortium (CPC), due to export Kazak oil to Russia's Black Sea port Novorossiysk in its newly built pipeline, wants Moscow to speed up signing a transportation agreement. The deal,...

TNK follows `western model'.(Tyumenneft)(Brief Article)
May 18, 2001... Tyumen Oil (TNK) has taken the first steps towards transforming itself into a western-style firm by reorganising its upstream wing. TNK says from now on its oil-producing units will operate more independently, with the firm's Moscow...

Moscow oil firms' merger looms.(Moscow Oil Company (MOC) claims to be on the brink of finalising its much delayed takeover of Central Fuel Company)(Brief Article)
May 18, 2001... The Moscow Oil Company (MOC) claims to be on the brink of finalising its much delayed takeover of Central Fuel Company (CFC), operator and majority owner of the 242,000 b/d Moscow refinery. CFC is currently owned by the Moscow city...

Investment and companies.
May 18, 2001... RTS stays tied to US It was another slow week for Russian equities, with only moderate trading volumes. The Russian Trading System (RTS) index of leading shares edged up by 1.8pc over the week and finished at 198 points. Activity was...

Sibneft ventures out of its back yard.(Brief Article)
May 18, 2001... Sibneft has for the first time started producing crude from outside its home base of Noyabrsk in western Siberia. Until last week, Noyabrsk was the source of all the Russian firm's output, but it hopes to eventually produce around half its...

Lukoil tightens supply noose around Lithuania.(Brief Article)
May 18, 2001... A fresh spat has developed between Lithuania's Mazeikiu Nafta (MN) and Lukoil, just as Lukoil completed preliminary talks with Lithuania's government over buying a stake in MN. MN accuses Lukoil of blocking a direct shipment of crude to...

Dearth of buyers pressurises products.(Brief Article)(Statistical Data Included)
May 18, 2001... * Warm weather across Europe deterred Russian gasoil buyers, resulting in continued oversupply from the Baltic. Fresh refiner demand failed to emerge for straight-run fuel oil. * Despite several Russian gasoil cargoes going into the...

Urals discounts narrow.(Illustration)(Statistical Data Included)
May 18, 2001... * Outright prices for Urals remained high, which made margins weak. Brent fell slightly at the end of last week, following a downward revision of the IEA's global demand forecast, as well as sharp price falls on gasoline. Brent recovered...

Netbacks.(Illustration)(Statistical Data Included)
May 18, 2001... [GRAPH OMITTED] Netbacks Russian crude netbacks 16 May Ventspils Butinge Urals (cif-fit) ($/bl) 27.21 27.21 Urals (cif-fit) ($/t) 198.60 ...

Lukoil `blockades' Lithuania.(Brief Article)
May 11, 2001... Lukoil is again at odds with Mazeikiu Nafta operator Williams. The battle looks set to be a long one US firm Williams and Russia's Lukoil are engaged in an increasingly bitter war of words over Lithuanian oil firm Mazeikiu Nafta (MN)....

The wild frontier.(Kazakhstan's giant oil field)(Brief Article)
May 11, 2001... The Okioc partners have put a concrete reserve figure on their Kashagan field. But that is only half the story The news that Kazakhstan's giant Kashagan structure does indeed contain substantial volumes of oil is not exactly a surprise....

PSA tax code deadline looms.(production-sharing agreement)(Brief Article)
May 11, 2001... The Russian finance ministry is expected to present the government with the final draft of a production-sharing agreement (PSA) chapter for part two of the country's tax code by 20 June. Foreign investors and the ministries of energy, and...

CPC held up by custom.(Caspian Pipeline Consortium)(Brief Article)
May 11, 2001... Kazakh sources claim that filling the 600,000 b/d Caspian Pipeline Consortium (CPC) link between Tengiz and Novorossiysk has been halted. The root of the problem appears to be a continuing dispute over the quality bank system, required to...

Turkish energy minister forced out.(Cumhur Ersumer)(Brief Article)
May 11, 2001... Turkish energy minister Cumhur Ersumer has been forced to resign after being implicated in a prosecutor's report following a wide-ranging corruption investigation dubbed "White Energy". Ersumer, who has served as energy minister for all but...

Fyodorov faces showdown.(Boris Fyodorov)(Brief Article)
May 11, 2001... Russian investment bank UFG is under pressure over its alleged involvement in "grey schemes" to buy Gazprom domestic shares on behalf of foreign investors. The development is seen as part of a campaign by Gazprom management to oust Boris...

Kasyanov gives mixed signals on gas.(Brief Article)
May 11, 2001... Russian prime minister Mikhail Kasyanov this week signed a decree on third-party access to the gas pipeline network. But the move is unlikely to break Gazprom's stranglehold. The new decree supersedes and, on the face of it, improves on a...

Russia proposes new natural resources tax.(Brief Article)
May 11, 2001... The Russian government has presented its proposals for a natural resources tax system to the Duma. But they have drawn a mixed reception from oil finns. The government is proposing a single levy that will be adjusted according to the...

BP outlines Azeri programme.(Brief Article)
May 11, 2001... BP's top man in Azerbaijan met Azeri president Heidar Aliyev this week to outline investment plans for the Azeri-Chirag-Guneshli (ACG) and Shakh Deniz projects, both led by the major. David Woodward, BP Azerbaijan associate president and head...

Shakh partners go for all-new pipeline.(British Petroleum Company PLC)(Brief Article)
May 11, 2001... Shakh Deniz leader BP has decided against using part of an existing pipeline to transport gas from Azerbaijan's offshore Shakh Deniz field to Turkey. BP and Anglo-Norwegian engineering finn Kvaerner had been studying the Kazi-Magomed to...

Turkmens get tough on Caspian border.(Brief Article)
May 11, 2001... Turkmenistan has demanded that Azerbaijan stop oil production and development at its Chirag and Azeri fields, currently being developed by the international AIOC group. The call follows Turkmenistan's abrupt withdrawal last week from...

Russia & CIS.(multiple topics)(Brief Article)
May 11, 2001... Government finally cuts fuel oil tax The Russian government published a resolution last week reducing the fuel oil export tax from 31 [European Dollar]/t ($27.40) to 20 [European Dollar]/t The reduction is expected to come into force from...

Caspian/Central Asia.(Kazakhstan)(Brief Article)
May 11, 2001... Kazakhs see Kashagan oil going west Kazakh deputy prime minister Vladimir Shkolnik has said that oil from the central Asian state's offshore Kashagan structure could eventually be transported through the proposed Baku-Tbilisi-Ceyhan...

Central/eastern Europe.(OMV AG)(Brief Article)
May 11, 2001... Germans team up German companies RWE and Wintershall have formed a consortium to bid for a 49pc stake in Slovakian natural gas company SPP (FSUE, 6 April, p4). The two German firms also plan to put in a joint bid for Czech gas...

Floating storage season starts.(Brief Article)(Statistical Data Included)
May 11, 2001... The St Petersburg floating storage season is under way, and port sources estimate that up to 4mn t of fuel oil -- around two-thirds of total expected shipments -- could be shipped through floating storage this year. Floating storage...

Baltics.(Lietuvos Dujos)(Brief Article)
May 11, 2001... Lithuania delays gas privatisation The Lithuanian government has delayed issuing a tender for the sale of part of its 92pc stake in state-owned gas company Lietuvos Dujos. The government had been expected to issue the tender this week and...

Poland juggles gas pipeline options.
May 11, 2001... The Polish government is trying to balance pipeline projects, privatisation of state-owned gas firm PGNiG, and politics. And pressure is mounting from all sides Poland and Russia's Gazprom are due to reach a decision in the middle of...

Oil stocks drive RTS to a year high.(Statistical Data Included)
May 11, 2001... Russian equities continued to build on the gains of the last two weeks, reaching a new high for the year ahead of the 9 May Victory Day holiday. The Russian Trading System (RTS) index of leading shares finished the period a healthy 8pc higher...

Surgutneftegaz shrugs off criticism.(Brief Article)
May 11, 2001... Surgutneftegaz (SNG) president Vladimir Bogdanov last week defended his company's low dividend payment to preferred shareholders. Speaking at the firm's AGM, held in its west Siberian headquarters town, Surgut, Bogdanov justified the low...

Weak demand pressures gasoil.(Brief Article)(Statistical Data Included)
May 11, 2001... * Limited demand for gasoil in France and Germany has resulted in stocks building up at Ventspils. Gains in IPE gasoil futures prevented a slide in outright prices, but prices were expected to come under pressure soon. * There were ample...

Urals gains in north, Med flounders.(Brief Article)(Statistical Data Included)
May 11, 2001... * Outright prices for Urals rose early in the week after comments by US energy secretary Spencer Abraham about insufficient US refining capacity pushed up Brent. But prices later fell back following the release of API data showing increased...

Russian crude exports.(Statistical Data Included)(Illustration)
May 11, 2001... FSUE -- Russian crude exports Exporter Novorossiysk Tuapse Odessa Total exports through Russia 3,714.0 504.0 870.6 Total exports by Russia 2,987.4 504.0 352.0 Oil...

Netbacks.(Illustration)
May 11, 2001... [ILLUSTRATIONS OMITTED] FSUE--Netbacks Ventspils Butinge Novorossiysk Urals (cif-fit) ($/bl) 25.90 25.90 25.57 Urals (cif-fit) ($/t) 189.07 ...

Rusia wants special status.(Rusia Petroleum presses for international contract status)(Brief Article)
May 4, 2001... The Kovykta investors want government backing for the project. TNK is helping find the `right tone' The BP-led Rusia Petroleum joint venture is pressing for special status for its Kovykta gas project in eastern Siberia's Irkutsk region....

Time to get moving.(Rusia Petroleum; exporting gas to China)(Brief Article)
May 4, 2001... Rusia Petroleum wants to export gas to China. It would make sense for the government to help Signs that the Russian government could be gearing up to throw its full weight behind Rusia Petroleum's development of the giant Kovykta field...

Mol prepares to sell gas division.(Brief Article)
May 4, 2001... Hungarian oil and gas firm Mol wants to sell its loss-making gas business to concentrate on expanding its oil interests. The development follows a long-running battle with the Hungarian government over price controls. Mol's gas business...

Khristenko gives green light to auctions.(Brief Article)
May 4, 2001... The Russian government is pressing ahead with plans to auction "spare" crude exports. The measure is part of the government's continuing campaign to tighten control over crude exports. Russian vice-premier Viktor Khristenko, who heads...

Baku hails Turkish gas liberalisation.(Brief Article)
May 4, 2001... The Turkish parliament has passed a law on the liberalisation of its gas market. The new law -- in line with international monetary fund requirements -- will give all firms access to the market, and will dismantle the monopoly of state-owned...

Azeris talk up Baku-Ceyhan.(Brief Article)
May 4, 2001... Six international firms, which Azerbaijan wants to recruit for the Baku-Tbilisi-Ceyhan (BTC) pipeline project, attended a presentation in Baku this week. Meanwhile, Azeri state-owned oil firm Socar hints that basic engineering results for the...

AIOC sets target.(Brief Article)
May 4, 2001... Azerbaijan's AIOC consortium expects to complete its expansion of the Baku-Supsa crude pipeline by June. Work currently being carried out will boost capacity from 115,000 b/d to 135,000-145,000 b/d (FSUE, 16 March, p7). At the same time, the...

River navigation season restarts.(Brief Article)
May 4, 2001... Russia's extensive inland waterway system offers a competitive means of crude and product transportation. After a six-month break, milder weather conditions mean the system -- which links the Baltic, Black and Caspian Seas -- is open for...

Russian rail tariffs cut in sight.(Brief Article)(Statistical Data Included)
May 4, 2001... Russia's commission on rail tariffs has decided to make tariffs for shipments to sea ports equal to those for internal transport from 1 July. If implemented, the new tariffs could boost the appeal of rail shipments to Russian ports. Export...

Volgotanker: near monopoly.(Brief Article)
May 4, 2001... Volgotanker is Russia's largest crude and products river shipping company, with a virtual monopoly in central Russia. Yukos was a majority shareholder in the company until last year when it transferred 60pc to Volgotanker AMS -- which is run...

Russia & CIS.(Brief Article)
May 4, 2001... State may increase Transneft stake The Russian government's 75pc stake in oil pipeline operator Transneft could be increased. The change would be at the expense of a 25pc stake held by offshore firms controlled by former Transneft...

Caspian/central Asia.(Brief Article)
May 4, 2001... Agip announces Kashagan reserves Italy's Agip said this week that production tests drilled in Kazakhstan's Kashagan oil field indicate recoverable reserves of at least 10bn bl. This is the first time since it won Kashagan operatorship...

High prices hit Mazeikiu's profits.(Brief Article)
May 4, 2001... Lithuania's Mazeikiu Nafta (MN), which operates the 263,000 b/d Mazeikiai refinery and Butinge crude terminal, has recorded a preliminary loss of 84.7mn litas ($21.2mn) during the first quarter of 2001. This compares with a loss of 18.8mn...

Central/eastern Europe.(Brief Article)
May 4, 2001... Cloud hangs over Transgas sale Czech privatisation agency NPF has invited preliminary expressions of interest in state-owned gas company Transgas and municipal supply companies (FSUE, 20 April, p9). But privatisation may be delayed by a...

Fall in gasoil demand hits FSU exports.(Brief Article)(Statistical Data Included)
May 4, 2001... Fuel oil exports from FSU ports increased significantly last month, boosted by demand from the Asia-Pacific region. But weak demand in key European markets contributed to a reduction in gasoil shipments. Fuel oil shipments through the...

Surgut leads the pack.
May 4, 2001... Russian equities edged up before the markets closed for the three-day May holiday. The Russian Trading System (RTS) closed on 27 April at just over 180 points, its highest level since the beginning of March. The RTS has proved to be one...

Rompetrol aims for $1bn turnover.(Brief Article)
May 4, 2001... Romanian oil firm Rompetrol outlined its development strategy in Bucharest last week. The company plans to become a significant crude producer over the next few years. Rompetrol's biggest asset is the 100,000 b/d Petromidia refinery on...