FSU Energy articles from May 2005

FSU Energy archives from May 2005

Ukraine crisis eases: the president has soothed tensions with Russian crude suppliers and key refiners, but the firms remain uncertain.
May 27, 2005... Ukrainian president Viktor Yushchenko's intervention in the row between his government and Russian oil firms appears to have helped defuse the immediate problem. At a meeting last week Yushchenko asked Russian firms to "turn the page"...

Symbiotic relationship: Kiev is thinking about alternative crude sources. But in the end economics will decide the issue.(EDITORIAL)(Editorial)
May 27, 2005... No government wants to see spiralling pump prices and queues at filling stations--particularly not one that has just come to power against a backdrop of street protest and revolution. But this is the situation that Ukraine's new rulers...

Gazprom plan moves forward.(News)
May 27, 2005... The plan to allow the Russian state to boost its stake in Gazprom to a controlling one seems to be moving forward. And it may ultimately lead to the gas company securing long sought-after crude production assets as part of a wider strategy to...

Kiev searches for products.(News)(Brief Article)
May 27, 2005... Ukraine is looking for gasoline supplies in neighbouring countries in order to make up a supply shortfall following the recent dispute with Russian-owned refineries over prices (see p1). The country, which last month lifted product import...

Power outage hits Moscow refinery.(News)(Brief Article)(Illustration)
May 27, 2005... A major power cut in Moscow this week forced the city's 240,000 b/d refinery to suspend output. Afire at a power station late on 24 May left large parts of the city without electricity throughout the following day, causing widespread...

Lukoil eyes Cheleken assets.(Caspian)(Brief Article)
May 27, 2005... Lukoil has its eye on Dragon Oil, operator of Turkmenistan's offshore Cheleken block, say Turkmen oil sources. Officially, Lukoil denies that it has agreed a deal to take a 65pc stake in Dragon held by the UAE's Enoc, but Lukoil sources...

Turgai dispute deepens.(Caspian)(Brief Article)
May 27, 2005... The dispute between Lukoil and Canada's PetroKazakhstan, its partner in the 50:50 Turgai Petroleum venture in Kazakhstan, appears to be deepening. Turgai is suing PetroKazakhstan for $193.6mn in a Kazakh court. It claims work carried out...

BP opens BTC.(Caspian)(British Petroleum Company PLC)(Baku-Tbilisi-Ceyhan)(Brief Article)
May 27, 2005... The 1mn b/d Baku-Tbilisi-Ceyhan (BTC) line was officially opened this week at a ceremony in Baku, attended by the Azeri, Turkish, Georgian and Kazakh presidents. But it will be several months before crude exports start. Over 10mn bl of...

Kharyaga-Indiga study starts.(Pipelines)(Brief Article)
May 27, 2005... Transneft is starting an investment feasibility study for a proposed 480,000 b/d pipeline from Kharyaga in Timan-Pechora to Indiga on the Barents Sea. The study will take up to one year and will then be submitted to the government for...

TNK-BP proposes eastern quality bank.(Pipelines)(Brief Article)
May 27, 2005... TNK-BP backs the introduction of a quality bank for a projected 1.6mn b/d pipeline from east Siberia to the Pacific coast. The planned east Siberian line will be "a good testing ground" for a quality bank system, TNK-BP executive...

Tariff hike will finance far east line.(Pipelines)(Brief Article)
May 27, 2005... Russia's crude pipeline tariffs will increase by an average 7.9pc from 1 June. The extra money will be used to finance expansion of the existing pipeline system from west Siberia eastwards, ahead of construction of a planned pipeline from...

Ukraine prompts pipeline fears.(Pipelines)(Brief Article)
May 27, 2005... Uncertainty over crude transit through Ukraine is making Russia step up work on new pipelines, says Transneft president Semyon Vainshtok. "We have to consider faster diversification of export routes to minimise any problems," Vainshtok said...

Bootleggers prompt naphtha duty plan.(News)(Brief Article)
May 27, 2005... Moscow is planning to introduce excise duty on naphtha to prevent it being used to make bootleg gasoline. The move may result in increased naphtha exports. The Duma is set to approve a draft law on the issue shortly, with the duty likely...

TNK-BP confirms Kovykta plans.(News)(Brief Article)
May 27, 2005... TNK-BP has officially confirmed that it is to start the "early gas" phase of the Kovykta project. The company's board of directors has approved a $136mn budget up to 2008, which will mainly be used to build a gas pipeline from Kovykta to...

Kazakhstan focuses on service sector.(News)
May 27, 2005... Kazakhstan holds vast potential for oil field service companies, but pressure is mounting on energy firms to boost local content in oil and gas projects, despite doubts about whether domestic firms have the expertise required. Leading...

Novatek IPO news hits Total hopes.(News)(Initial public offerings)
May 27, 2005... Independent gas producer Novatek has been given the all clear for an initial public offering (IPO) on western stock markets. The news could signal an end to Total's hopes of taking a blocking stake in the firm. The federal stock market...

Bodman visits Russia.(News)(Brief Article)
May 27, 2005... Recently-appointed US energy secretary Samuel Bodman visited Moscow this week for meetings with Russian ministers. Discussions covered potential energy co-operation between the two countries. Bodman met energy minister Viktor Khristenko,...

Yukos reorganises.(News)(Brief Article)
May 27, 2005... Yukos management this week officially announced its corporate restructuring programme (FSUE, 13 May, p3). The firm will be reorganised into two divisions--Yukos Exploration and Production and Yukos Refining and Marketing. The two divisions...

Mazeikiu Nafta interest hots up.(Russia & CIS)(Brief Article)
May 27, 2005... TNK-BP president Robert Dudley and executive director German Khan have confirmed that the Anglo-Russian venture is interested in buying Yukos' stake in Lithuania's Mazeikiu Nafta (MN). The two men met with Lithuanian president Valdas Adamkus...

Salym production rising.(Russia & CIS)(Brief Article)
May 27, 2005... Shell and Evikhon, its partner in developing the Salym project in west Siberia, expect to produce around 6,400 b/d from the Salym group of fields this year. The Salym block is operated by Salym Petroleum Development (SPD), a 50:50 joint...

No delays to Russian flows.(Russia & CIS)(Brief Article)
May 27, 2005... Traders have denied reports that high water levels on Russia's inland waterway system have slowed down exports through St Petersburg this month. They say plenty of high-sulphur fuel oil is coming out of Russia and that there has been no...

Russian gas exports.(Brief Article)
May 27, 2005... Russian gas exports bn [m.sup.3] Apr Jan-Apr Jan-Apr 05 05 04 Western Europe 11.74 40.6 37.84 Austria 0.65 2.25...

Looking ahead.
May 27, 2005... * Mergers, Acquisition and Licensing in the Russian Oil and Gas Industry. 30-31 May. Moscow. RPI. Tel: +7 095 778 93 32. * 12th Annual Central European Gas Conference. 6-8 June. Budapest. Economatters. Tel: +44 20 7332 9975....

OMV's results boosted by Petrom.(Central/eastern Europe)(Brief Article)
May 27, 2005... Austria's OMV made record profits in the first quarter, boosted by the inclusion of consolidated earnings from Romanian firm Petrom, which it took over at the end of last year (FSUE, 17 December, p9), for the first time. OMV's earnings before...

Croatia-Bosnia gas link proposed.(Central/eastern Europe)(Brief Article)
May 27, 2005... Bosnia and Herzegovina's BHGC is planning to build a gas link to hook up to the existing Slavonia-Dalmatia grid linking eastern and southern Croatia. The firm is in talks with Croatia's Ina and has started a study on gas demand until 2010,...

Italy, Croatia open new gas platform.(Central/eastern Europe)(Brief Article)
May 27, 2005... Croatia is set raise northern Adriatic gas production five-fold by year-end to 1.5bn [m.sup.3]/yr of gas, as three new platforms come on stream. InAgip, a joint venture of Croatia's Ina and Italy's Agip, brought its second, 200mn [m.sup.3]/yr...

Kazakh oil and gas production.
May 27, 2005... Kazakh oil and gas production Kazakh crude production '000t Company Apr Mar CNPC-Aktobemunaigaz 440,700 459,600 Aydan-Munai 23,202 21,760 Alties...

Crude exports from Azerbaijan.(Brief Article)
May 27, 2005... Crude exports from Azerbaijan '000t Exporter Apr [+ or -] Mar AIOC (Supsa) 481,8 -15.4 AIOC (Novo) 322,9 -114.1 Total 804.7 -129.5

Crude production in Azerbaijan.(Brief Article)
May 27, 2005... Crude production in Azerbaijan '000t Production Apr [+ or -] Mar AIOC 858 -26.6 Socar 745 -19.0 Total 1,603 -46.0

Turkmen crude output/refining.(Brief Article)
May 27, 2005... Turkmen crude output/refining '000t Apr Mar Jan- %chg Jan- 5-Apr 4-Apr Production * 774 835 3.1 0,5 Refinery thr'puts 553 749 2.2 ...

Turkmen gas output.(Brief Article)
May 27, 2005... Turkmen gas output bn [m.sup.3] Jan-Apr 05 %chg Jan- Apr 04 Production 23.8 -1 Export 16.8 -4 LPG ('000t) 121.1 12

RTS heads for 700.(Stock markets)(Russian Trading System)
May 27, 2005... Russian stocks have bounced back over the past week, on the back of clarity about Gazprom and Rosneft, strong results from Lukoil and some speculative buying on Sibneft. The RTS ended the week up 3.38pc at $669.24, after hitting a high...

Lukoil defies costs and taxes.(Companies)
May 27, 2005... Russian oil firm Lukoil made $4.3bn last year, slightly above the majority of analyst forecasts, according to figures released this week. But quarter-on-quarter performance deteriorated in the last three months of 2004. Annual profits...

Sibir plot thickens.(Companies)
May 27, 2005... Mystery litigators behind a lawsuit brought against UK-listed independent Sibir Energy have been given until 27 May to disclose the identity of their backers to the oil firm's lawyers. Minority shareholder group Harley Street Capital...

German buyers boost gasoil.(Products market)
May 27, 2005... * Prices rose over the week, after a surprise draw in US crude stocks sent futures markets soaring. But fuel oil prices lagged, weighed down by bumper Russian exports. * Russian gasoil prices rose in northwest Europe on the back of gains...

Products prices.(Products market)(Brief Article)(Illustration)
May 27, 2005... Products prices 25 May $/t Chg on 18 May Baltic ports (fob) Russian gasoil 446.61 - 448.61 +17 M-100 (straight-run) 216.96 - 218.96 +17...

Freight rates.(Products market)(Brief Article)(Illustration)
May 27, 2005... Freight rates 25 May Rate WS ($/bl) Novorossiysk to Augusta (Italy) Clean products 30,000t 285 2.24 Fuel oil 30,000t...

Crude prices.(Crude market)(Brief Article)(Illustration)
May 27, 2005... Crude prices 25 May Chg on $/bl 18 May diff to BFO NW Europe BFO (dated) 49.17-49.23 +2.22 --...

Freight rates (capital shipbrokers).(Crude market)(Brief Article)(Illustration)
May 27, 2005... Freight rates (Capital Shipbrokers) 25 May WS Rate ($/bl) Novorossiysk to Augusta (Italy) Crude 130,000t 145 1.17 Crude 80,000t 150 ...

Arbitrage prospect lifts Urals.(Crude market)(Brief Article)
May 27, 2005... * Benchmark crude prices surged on both sides of the Atlantic after an unexpected fall in US crude stocks, with both forward BFO and WTI climbing back above $50/bl. Urals gained around 50 cents/bl in both the Mediterranean and northwest...

Russian crude and condensate production, March 2005.(Russian oil production)(Illustration)
May 27, 2005... Russian crude and condensate production, March 2005 % chg '000t '000 b/d Feb 05 Vertically integrated oil companies ...

Russian crude netbacks.(Netbacks)(Illustration)
May 27, 2005... Russian crude netbacks 25 May Primorsk Butinge Novo- rossiysk Urals (cif-fit) ($/bl) 45.60 45.60 46.20 Urals...

Merger breaks down: a new and highly complex scheme has been devised to boost the Russian state's share in Gazprom.
May 20, 2005... Gazprom has finally conceded what most observers had long suspected--that it will not be taking over Rosneft. The chairman of the gas giant's board of directors, Dmitry Medvedev, this week revealed a new mechanism by which the state will...

The great dictator: Uzbekistan is perhaps the only FSU country where the interests of Washington and Moscow coincide.(Islam Karimov)(fomer soviet union)(Editorial)
May 20, 2005... Events in Uzbekistan over the past week have inevitably prompted speculation that another former Soviet state could be on the brink of revolution. Uzbekistan has the unhappy distinction of being one of the poorest and most oppressive...

TNK-BP awaits Kovykta verdict.(Yuri Trutnev threatens to withdraw licence)
May 20, 2005... TNK-BP is waiting for an official verdict on whether the Rusia Petroleum consortium is in breach of licence conditions for development of the giant Kovykta gas field in east Siberia. A natural resources ministry commission set up to...

Sakhalin Energy raises budget issue.(News)
May 20, 2005... The Shell-led Sakhalin Energy consortium is believed to have sought approval for a bigger budget for its Sakhalin II project at an 18 May meeting with the Russian government. The consortium was scheduled to discuss the matter with the...

Investors question Trutnev initiative.(News)(natural resources minister Yuri Trutnev)(Brief Article)
May 20, 2005... Critics have condemned natural resources minister Yuri Trutnev's proposal to set up a state-controlled company to oversee production-sharing agreements (PSAs) covering offshore shelf projects. Trutnev has long called for the...

Restarting the energy dialogue.(News)(US-Russia Commercial Energy Dialogue)
May 20, 2005... The head of the American Chamber of Commerce in Russia, Andrew Somers, is determined to "breathe new life" into the lacklustre energy dialogue between Russia and the US. There has been a hiatus in the US-Russia Commercial Energy Dialogue...

Yushchenko intervenes in fuel crisis.(Ukraine)
May 20, 2005... Ukrainian president Viktor Yushchenko has intervened in a row between his government and the Russian oil firms that operate the country's refineries. Yushchenko criticised the government this week after prime minister Yulia Tymoshenko...

PKN finalises Unipetrol takeover.(PKN Orlen)
May 20, 2005... PKN Orlen will complete its long-delayed acquisition of a majority stake in Czech oil and chemicals group Unipetrol by the end of May, the Polish oil firm has promised. PKN chief executive Igor Chalupec says the company received...

Crude economics work for Mol.(Central/eastern Europe)
May 20, 2005... Hungary's Mol has had a very strong first quarter. In dollar terms the company reported profits up by 53pc on the same period last year, to $379.7mn. Erste Bank says Mol's first-quarter performance was due to a "very strong downstream...

Duty hike pushes crude off the rails.(Exports and trade)
May 20, 2005... Railway crude exports from Russia fell slightly in April after posting two consecutive month-on-month increases. But they were still higher than in April last year. The month-on-month drop was due to an increase in export duty at the...

Exports seen little affected by record high duty.(Exports and trade)(Brief Article)
May 20, 2005... Oil companies are not expecting the planned hike of Russia's crude export duty to have a big impact on shipments, although some rail routes are likely to become unprofitable. The duty will rise by $33.60/t to a record high of $136.20/t from 1...

Gazprom ratings improve.(Brief Article)
May 20, 2005... Credit rating agencies have reacted quickly to Moscow's latest scheme for acquiring majority control of Gazprom (see p1). The gas giant has abandoned plans to merge with or take over Rosneft, much to the relief of the markets. Instead, the...

Gazprom loses NEGP partner.(OAO Gazprom acquires stakes in North Transgas from Fortum)(Brief Article)
May 20, 2005... Finland's Fortum is selling its 50pc stake in North Transgas, the firm set up to plan, construct and operate the North European Gas Pipeline (NEGP), to its partner Gazprom for an undisclosed sum. The move will leave the Russian gas monopoly...

Russia schedules June Novo cut.(petroleum pipeline maintenance plans)(Brief Article)
May 20, 2005... Crude exports from the Black Sea are likely to decline next month, as Transneft plans maintenance at the pipeline feeding Novorossiysk. The port is provisionally scheduled to handle 876,000 b/d of pipeline crude, or 54,000 b/d less than under...

Bashkir court verdict.(Brief Article)
May 20, 2005... Bashkortostan's president, Murtaza Rakhimov, has scored a small victory in his battle to regain control of the autonomous republic's energy sector. A court ruled on 13 May that the 2003 privatisations of 240,000 b/d crude producer Bashneft...

Oilports 2005: Nice, France. 25-27 May.(Brief Article)
May 20, 2005... Ports play a pivotal role in the oil supply chain. Yet rapid change in the former Soviet Union (FSU) has often meant that key information on oil terminals at seaports has been difficult to obtain. For a number of years, Argus has helped shed...

Looking ahead.(Calendar)
May 20, 2005... * IV International Pipeline Forum. 24-27 May, 2005, Moscow. RPI. Tel: +7 095 778 93 32. * Mergers, Acquisition and Licensing in the Russian Oil and Gas Industry. 30-31 May. Moscow. RPI. Tel: +7 095 778 93 32. * 12th Annual Central...

CPC members disagree on expansion.(News)(Caspian Pipeline Consortium )(Brief Article)
May 20, 2005... Caspian Pipeline Consortium (CPC) shareholders have again failed to reach agreement on expansion of the key Caspian export route. The parties only agreed to set up a working group although its members have not yet been defined, says a...

TNK-BP starts CPC shipments.(exports via Caspian Pipeline Consortium)(Brief Article)
May 20, 2005... TNK-BP has started crude exports via the Caspian Pipeline Consortium (CPC) route, joining other Russian firms that started shipments late last year. The Anglo-Russian firm will ship 57,000 b/d (240,000t) via CPC in May, says a company...

Gazprom and OMV sign gas transport deal.(News)
May 20, 2005... Gazprom and Austria's OMV have signed a contract for delivery of Russian natural gas through the West Austria Gas (WAG) line. OMV says the contract--signed on 15 May between OMV Gas and Gazexport, both 100pc-owned subsidiaries of their...

Gazprom gains as merger cancelled.(Stock markets)
May 20, 2005... Signs that the Gazprom-Rosneft merger is now off have given a significant fillip to the Russian market. A Gazprom board of directors meeting on 17 May prompted what many in the market hope is a final decision to scrap the acrimonious...

Looking east.(Surgutneftegaz Industrial Association planning petroleum development and production)
May 20, 2005... Russia's third-largest crude producer Surgutneftegaz is finalising development plans for the Talakan oil and gas field in east Siberia with a view to starting crude production later this year. The company hopes to produce 1.8mn bl...

Forward planning.(Surgutneftegaz Industrial Association planning capital expenditures for increasing output)
May 20, 2005... This year, Surgutneftegaz is planning capital expenditure of $2.1bn as part of a strategy to increase crude output over the next few years (see table). The company plans to reach these targets by developing new fields in east Siberia and...

Lower prices tempt back gasoil buyers.(Products market)(Brief Article)
May 20, 2005... * Prices fell in line with crude futures but this started to tempt gasoil buyers, who have been buying the absolute minimum in the last few months. Losses were relatively mild on fuel oil because of aggressive bidding on the Rotterdam barge...

Products prices.(petroleum)(Brief Article)(Illustration)
May 20, 2005... Products prices 18 May $/t Chg on 11 May Baltic ports (fob) Russian gasoil 429.88 - 431.88 -23 M-100 (straight-run) 200.13 - 202.13 -28...

Freight rates.(Products market)(Brief Article)(Illustration)
May 20, 2005... Freight rates 18 May Rate WS ($/bl) Novorossiysk to Augusta (Italy) Clean products 30,000t 265 2.08 Fuel oil 30,000t...

Crude prices.(petroleum)(Brief Article)(Illustration)
May 20, 2005... Crude prices 18 May Chg on $/bl 11 May diff to BFO NW Europe BFO (dated) 46.95-47.01 -2.54 --...

Freight rates (capital shipbrokers).(crude markets)(Brief Article)(Illustration)
May 20, 2005... Freight rates (Capital Shipbrokers) 18 May WS Rate ($/bl) Novorossiysk to Augusta (Italy) Crude 130,000t 160 1.29 Crude 80,000t 200 ...

Prices spiral lower.(Crude market)(Brief Article)
May 20, 2005... * Another massive hike in US crude stocks combined with assurances from Opec that it will keep supplies flowing drove crude prices lower over the week. July BFO fell to $48.20/bl, down by more than $3/bl on the week. In addition, the rising...

Russian rail exports/imports, April 2005.(petroleum transportation)(Illustration)
May 20, 2005... Russian rail exports/imports, April 2005 '000t % chg Crude '000 b/d Mar Overland Afghanistan Armenia Azerbaijan Belarus ...

Russian crude netbacks.(Netbacks)(Illustration)
May 20, 2005... Russian crude netbacks 18 May Primorsk Butinge Novo- rossiysk Urals (cif-fit) ($/bl) 42.93 42.93 43.48 Urals...

Hydro offers Shtokman solution: the Norwegian firm stresses its technological know-how in a bid to enter Russia's prized Barents Sea project.(Hydro)
May 13, 2005... Norway's Hydro is to submit proposals for development of the Shtokman gas field to Gazprom on 12 May. The move is part of the company's pitch to be Gazprom's partner in the Barents Sea project, but it is facing intense competition from other...

Keeping it in the family: the Kremlin is finding ways to deal with the powerful, clannish leaders of Bashkortostan and Tatarstan.(EDITORIAL)
May 13, 2005... The administration of President Vladimir Putin has devoted a lot of energy to "federal reform"--essentially centralising power and reining in wayward provincial barons. The Kremlin has brought to heel and, in some cases fired, regional...

Yukos management slims down.(News)
May 13, 2005... Yukos is due to complete a recently launched corporate restructuring programme at the end of this month, amid renewed attempts to take control of its remaining assets. The restructuring process will place overall control of what is left...

Total worries about Novatek.(News)
May 13, 2005... Total's failure to secure a stake in Russian gas producer Novatek could force the French company to rethink its 2004-10 production targets. The major may have to reduce its five-year production growth forecasts from 4pc to 3pc if the...

Azeri Light heads for Batumi.(Caspian)
May 13, 2005... The BP-led AIOC group plans to start shipping Azeri Light crude by rail to the Georgian Black Sea port of Batumi from June, pending the start-up of the Baku-Tbilisi-Ceyhan (BTC) line. Crude will be sent to Batumi by rail rather than moved...

Kashagan output set to surge.(Caspian)(Brief Article)
May 13, 2005... New Kashagan partner Kazmunaigaz has outlined prospects for development at the huge offshore field, which is set to provide more than a third of Kazakhstan's peak crude output. Production at the 11.3bn bl Kashagan field is expected to...

Lukoil drills Kazakh offshore.(Caspian)(Brief Article)
May 13, 2005... Lukoil has started drilling its first exploration well at the Tyub-Karagan-Atash offshore block in the Kazakh sector of the Caspian Sea. The first well, which is to be drilled to a depth of 2,500m, is located in the Tyub-Karagan structure....

Russia fears losing transit control over Ukraine.(News)
May 13, 2005... Ukraine is once again trying to enlist Kazakh support for use of the Odessa-Brody pipeline as a transit route for Caspian crude. The move, which coincides with demands that Russian-owned refineries in Ukraine cap motor fuel prices, is making...

Georgia wants more Shakh-Deniz gas.(News)
May 13, 2005... Georgia wants more gas from the BP-led Shakh-Deniz project in Azerbaijan, in a bid to reduce its dependence on Russian imports. The Georgian government has already begun negotiations with Shakh-Deniz shareholders, BP Azerbaijan president...

Mol eyes new Balkan assets.(Central/eastern Europe)
May 13, 2005... Hungary's Mol and Croatia's Ina have been named as preferred joint bidders for a 67pc slice of Bosnian fuel retailer Energopetrol. But infighting between the Bosnian energy ministry and the office of the country's prime minister has prompted...

Lotos privatisation plan receives boost.(Central/eastern Europe)
May 13, 2005... Poland is launching the long-awaited privatisation of Grupa Lotos, operator of the country's 210,000 b/d Gdansk refinery, which should result in the facility being listed on the Warsaw stock exchange by the end of June. But privatisation...