FSU Energy articles from November 2000

FSU Energy archives from November 2000

ExxonMobil hits roadblock.
November 24, 2000... Even if ExxonMobil's PSA difficulties are resolved, it faces confrontation over Sakhalin export routes US major ExxonMobil claims its Sakhalin I project in Russia's far east has ground to a halt because of continuing legal uncertainties....

Still waiting.
November 24, 2000... Western investors welcomed President Putin's call for PSA progress earlier this year. But they are waiting for results Foreign oil companies in Russia are engaged in a long-distance endurance race. The goal is clear -- a secure...

Lukoil stumbles in Timan-Pechora.
November 24, 2000... Lukoil is trying to break bureaucratic barriers and push forward key upstream projects in Timan-Pechora. But it faces opposition from the powerful Nenets regional government and growing competition from other oil firms. Lukoil, whose...

Alekperov: "We are not scared".
November 24, 2000... Lukoil president Vagit Alekperov discussed the company's involvement in Timan-Pechora and other issues in an interview with Argus this week. What will you do if the government holds a tender for the 20pc Kharyaga stake? We are not...

Gas deal near, claim Russia and Ukraine.
November 24, 2000... Russia and Ukraine are on the brink of eliminating theft of Russian gas by Ukraine, prime minister Mikhail Kasyanov and Ukrainian counterpart Viktor Yushchenko said last week. But there is still disagreement on the finer details of the...

Gazprom talks bypass in Poland.
November 24, 2000... Gazprom has stepped up negotiations on construction of its proposed Ukrainian bypass gas pipeline. The gas giant's chairman, Rem Vyakhirev, visited Warsaw this week to discuss the issue, accompanied by Russian foreign minister Igor...

Ukrainian output falls.
November 24, 2000... Ukraine produced 14.98bn [m.sup.3] of gas and 3mn t (72,000 b/d) of oil and condensate in January-October. Oil output is down by 2.7pc on the same period last year, with gas production 0.4pc lower. The figures suggest government targets of...

Kazakhstan plans producer sales.
November 24, 2000... The Kazakh government plans to sell the state's shares in leading crude producers Mangistaumunaigaz and Aktobemunaigaz by 2001. It hopes the sales will raise at least $100mn each, says Eduard Utepov, deputy president of the country's...

Turkey prioritises Azeri gas.
November 24, 2000... Turkey appears to be prioritising Azeri gas supplies as prospects fade for early deliveries from alternative sources. Following the effective collapse of the Trans-Caspian Gas Pipeline (TCGP) project earlier this year, Russia's Blue Stream...

Kazakhoil wins Ukrainian refinery.
November 24, 2000... Kazakh state-owned Kazakhoil has won an investment tender for a 60pc stake in Ukraine's 170,000 b/d Kherson refinery. The firm, backed by the presidents of both Ukraine and Kazakhstan, beat off a group of influential Ukrainian politicians for...

BP completes third Shakh well.
November 24, 2000... Shakh-Deniz operator BP has completed its third appraisal well at the field. The major says it is too early to reveal the results of the well, but industry sources suggest they are disappointing. But Azeri state-owned oil firm socar, also a...

Trade/loading schedules.
November 24, 2000... Novorossiysk Dec loading schedule '000t Date Supplier/exporter Volume Berth 1 1-2 Lukoil 131 2-3 Yukos ...

Ventspils returns from Moscow.
November 24, 2000... Latvian oil terminal operator Ventspils Nafta has won vital breathing space in the face of demands from Russian oil firms for reduced tariffs. During negotiations in Moscow last week, Ventspils Nafta persuaded Russia's six main exporters...

Gazprom and Media-Most saga.
November 24, 2000... Gazprom and Media-Most, Russia's largest private media holding, unexpectedly announced the settlement of their long-running debt dispute at the end of last week. The battle between the two firms is widely seen as part of a battle to silence...

Mol fights for gas action.
November 24, 2000... A Budapest court has rejected Mol's claim against the Hungarian government for losses caused by domestic gas price restrictions. But chief financial officer Michel-Marc Delcommune says it will keep appealing as a "permanent reminder" its...

Lukoil leans on Lithuania again.
November 24, 2000... Lithuania's 263,000 b/d Mazeikiai refinery, could face crude shortages by the end of this week, after Russian oil giant Lukoil moved to block a delivery by Yukos. Lukoil's move appears to be designed to both exclude its Russian rival...

Russia & CIS.
November 24, 2000... Iraqi vice-president to visit Moscow Iraqi vice-president Tariq Aziz was due to visit Moscow at the end of this week. Russian oil firms are involved in a number of upstream projects in Iraq, but these are largely on hold because of UN...

Opec's Rodriguez mollifies Russia.
November 24, 2000... Opec president and Venezuelan oil minister Ali Rodriguez visited Moscow after last week's Opec meeting and met energy minister Alexander Gavrin. Rodriguez, in Moscow for just a day on his way to the Riyadh summit, told Argus he had...

Caspian/central Asia.
November 24, 2000... Okioc's Kashagan progress The Offshore Kazakhstan International Operating Company has finished a drilling stage at its second test well at the west Kashagan field in the Kazakh sector of the Caspian Sea. Drilling of the third stage...

Baltics.
November 24, 2000... Baltics expect gas price hike Russia's Gazprom has invited the national gas distributors from Latvia, Lithuania and Estonia to negotiate new gas prices for the first half of 2001. Its invitation does not include information about...

Central/eastern Europe.
November 24, 2000... Rafo refinery to restart Romania's 70,000 b/d Rafo refinery will resume processing at full capacity next month, after a 20-month shutdown. The plant has signed a three-year processing deal with Belgian firm Sabado. But a number of...

RTS sinks to year low.
November 24, 2000... The Russia Trading System (RTS) crumbled to its lowest levels this year, making a mockery of earlier predictions of a bull-run to 300 points. The index closed at just over half that level, having fallen by some 6.5pc over the week....

TNK moves in at Onaco.
November 24, 2000... Tyumen Oil (TNK) has begun evaluating former state-owned oil firm Onaco, which it bought in September. The new general-director at Onaco's major production subsidiary Orenburgneft, Vitaly Tkachev -- recently seconded from TNK -- says he...

Company news.
November 24, 2000... * Russian producer Tatneft plans a Rbs200mn ($7.2bn) bond issue at the end of 2000 or in early 2001, subject to board approval. In 2001 Tatneft plans to increase the issue to Rbs 1 bn. * Surgutneftegaz made a net profit of Rbs54.7bn...

Sibneft strikes deal with Sibir.
November 24, 2000... Russia's Sibneft has struck an agreement with UK-registered Sibir Energy to take a 50pc stake in more than 2bn bl of reserves owned by Sibir subsidiary Yugraneft. The conclusion of the joint-venture agreement will boost Sibneft's reserves...

UES restructuring regains momentum.
November 24, 2000... Russia is to clarify the aims and timetable of reform for its power sector. Anatoly Chubais, chief executive of power monopoly UES, says a draft decree will be finalised at a cabinet meeting on 14 December, before being signed by...

Products market.
November 24, 2000... Supply shortage boosts gasoil * Gasoil prices surged because of scant Baltic supplies and heavy demand from Europe and the Americas. A recovery in refining margins hit M-100 fuel oil prices in northwest Europe, but straight-run remained...

Crude market.
November 24, 2000... Iraq gives upside to strong Urals * Urals narrowed the gap on benchmark crude dated Brent. But outright prices sagged as Brent shed a substantial prompt premium. * Refining margins for sour crude perked up slightly, but still...

Russian refinery output.
November 24, 2000... Russian refinery output, October 2000 '000t Crude Crude throughput throughput Company/refinery Oct Oct '000 b/d % chg Sep Total for Russia...

Netbacks.
November 24, 2000... [GRAPHS OMITTED] Russian crude netbacks 22 Nov Ventspils Butinge Urals (cif-fit) ($/bl) 32.27 32.27 Urals (cif-fit) ($/t) 235.57...

Firms slam export auction plan.(petroleum pipeline auction)(Brief Article)(Statistical Data Included)
November 17, 2000... The Russian government claims its new pipeline allocation system will be fairer. Not everyone agrees A Russian government plan to auction capacity in the country's crude export pipeline system has met with a negative response from the...

A good idea at the time ...(Russia's petroleum pipeline auction)(Brief Article)
November 17, 2000... Russia's plan to auction pipeline capacity has stirred up controversy. And it may not even work The idea of obliging Russian oil companies to buy extra pipeline capacity for crude exports through auctions finally took shape last week....

Rusia gears up for pilot production.(Rusia Petroleum /Kovykta gas field)(Brief Article)(Statistical Data Included)
November 17, 2000... The BP-led Rusia Petroleum joint venture is preparing for pilot production at the giant Kovykta gas field in eastern Siberia. In line with the field's licence terms, this is meant to start next month. But there is a chance the joint...

Gazprom dumps Media-Most deal.(Vladimir Gusinsky fraud charges)(Brief Article)
November 17, 2000... Gazprom has backed out of a deal with Vladimir Gusinsky's Media Most group, Russia's largest private media holding. The surprise development is seen as the latest twist in the Kremlin's long battle with Gusinsky. On 11 November Gazprom...

Third-party access hope.(Russia's Gazprom pipelines)(Brief Article)
November 17, 2000... Gas industry analysts say Russia's new export commission is likely to take steps to ensure independent gas producers are given access to Gazprom's pipeline system. In theory, they are guaranteed a 15pc quota under a 1997 decree signed by...

Yukos hopes for China breakthrough.(oil partners)(Brief Article)(Statistical Data Included)
November 17, 2000... Yukos signed a protocol of intent last week to boost deliveries to China by 2mn t/yr to 3mn t/yr (60,000 b/d) in two year's time. Yukos intends to supply 1.5mn t/yr each to China's Sinopec and CNPC under separate contracts. But the...

Lukoil develops far north export plans.(pipelines, ships and ports)(Brief Article)
November 17, 2000... Lukoil has joined forces with crude producer Ritek to develop a new crude export route from Russia's arctic north. The two companies deny being formally linked but Ritek director-general Valery Graifer was elected board chairman of Lukoil in...

Russoil's German role shrinks further.(Brief Article)
November 17, 2000... Hamburg-based trader Russoil, which until recently dominated Russian exports to Germany, appears to have completely lost its grip on shipments to that destination. By the middle of this month it had no crude contracted, despite the fact...

Ventspils Nafta boxes clever.(Russian oil exports)(Brief Article)
November 17, 2000... A delegation from Latvian crude terminal operator Ventspils Nafta (VN) was in Moscow this week to discuss a demand from Russian exporters for reduced tariffs for shipments through the Baltic states. The Latvian side has linked the issue to...

Oil lobby urges export tax revision.(Brief Article)(Statistical Data Included)
November 17, 2000... A group of Russian Duma deputies is lobbying for revision of the country's tax code to deprive the government of the right to change the crude export tax. The designers of the draft law want the tax to be subject to a new scale linked to...

Mazeikiu Nafta signs Polish export deal.(petroleum industry)(Brief Article)
November 17, 2000... Lithuanian oil firm Mazeikiu Nafta (MN) has signed supply agreements with Shell and Swedish oil firm Preem, which will significantly boost its exports of motor fuel to the growing Polish market. MN previously supplied around 15pc of the...

Vainstock warns China on pipeline tariffs.(Semyon Vainstock)(Brief Article)
November 17, 2000... In an interview this week Transneft president Semyon Vainstock issued a veiled warning to China and Ukraine over tariffs for proposed new export routes. He also issued a challenge to Lukoil's attempts to set up a transportation monopoly in...

Transneft targets Timan-Pechora.(new oil pipe line)(Brief Article)
November 17, 2000... Vainstock this week unexpectedly revealed Transneft's plans to build new pipeline infrastructure in the oil-rich Timan-Pechora region of Russia's far north. "This planned link would be incorporated into the proposed Baltic Pipeline...

Sidanco: `We are not Lukoil'.(Sidanco president Bob Sheppard)(Brief Article)(Interview)
November 17, 2000... Sidanco is redefining its role in the Russian oil market. It has weathered last year's loss of production subsidiaries Chernogorneft, Varyeganneftegas (VNG) and Kondpetroleum, and emerged from the shadow of bankruptcy. In an interview with...

Russia & CIS.(petroleum industry news)(Brief Article)
November 17, 2000... Opec president visits Moscow Opec president and Venezuelan oil minister Ali Rodriguez arrived in Moscow this week for talks with Russian officials. An energy ministry spokesman says minister Alexander Gavrin plans to meet Rodriguez, but...

Caspian/Central Asia.(petroleum industry news)(Brief Article)
November 17, 2000... Azerbaijan's Catch-22 Russia has blocked gas supplies to Azerbaijan. Trader Itera, which has a contract to supply 2.64bn [m.sup.3] of gas by 2001, suspended supplies to Azerbaijan on 11 November due to unspecified problems with Russia's...

Looking ahead--.
November 17, 2000... * Russian Energy Summit. 8 December. Moscow. CWC. Tel: (44 20) 7704 6161 Slavneft expects first oil at the field a year after it starts its development.

Central/eastern Europe.(petroleum industry news)(Brief Article)
November 17, 2000... Mol confirms gas losses Hungary's Mol has posted a third-quarter loss of 12.2bn forints ($39.8mn) compared with a Ft12.1 bn profit during the same period last year. The down-turn is ascribed to a government-imposed cap on Hungarian gas...

TNK gets its man in to Onaco.
November 17, 2000... Tyumen Oil (TNK) announced this week theft it plans to replace the president of newly acquired Onaco with one of its own men. The development is seen as further evidence that TNK and Sibneft have struck a behind-the-scenes deal over the...

RTS lacks rally drivers.(Russian Trading System)(Statistical Data Included)
November 17, 2000... Russian share values ended the week lower again, and prospects for the long-awaited end-of-year rally receded further. The index continues to suffer from the fragile sentiment depressing markets across the world. And observers see little...

Gazprom asset-stripping scandal spreads.(Stroytransgaz)(Brief Article)
November 17, 2000... Stroytransgaz, a gas industry construction company linked to Gazprom, has announced plans to expand its activities outside the FSU. But the company has become the focus of the latest scandal surrounding asset transfers by Gazprom's top...

EU pressures Ukraine on gas transit.(Brief Article)
November 17, 2000... The EU is trying to persuade Ukraine to allow foreign operators to run its gas transit pipeline system. The move forms part of EU plans to boost energy co-operation with Russia under a 20-year strategy approved last month (FSUE, 6...

Products market.(petroleum industry)(Brief Article)(Statistical Data Included)
November 17, 2000... Cooler weather boosts gasoil * Russian product prices surged on a flood of demand. Colder weather across Europe brought gasoil buyers onto the spot market. Weaker refining margins boosted demand for straight-run fuel oil as a feedstock,...

Crude market.(Brief Article)(Statistical Data Included)(Illustration)
November 17, 2000... Heating oil surge boosts sentiment * Outright prices for all Russian and Caspian grades climbed steadily through the week. Benchmark dated Brent fuelled the gains, soaring on Opec's decision not to release more crude and US insistence...

Russian rail data.(Statistical Data Included)
November 17, 2000... Russian rail exports/imports, Oct 2000 YTD '000 % chg '000 Crude b/d Sep b/d ...

Netbacks.(petroleum industry)(Statistical Data Included)
November 17, 2000... Russian crude netbacks Ventspils Butinge Urals (cif-fit) ($/bl) 32.65 32.65 Urals (cif-fit) ($/t) 238.35 238.35 Freight ($/bl) ...

Rusia signs Kovykta agreement.(Rusia Petroleum)(Brief Article)
November 10, 2000... Kovykta licenceholder Rusia Petroleum has signed an agreement with China's CNPC and South Korea's Kogas to carry out a feasibility study for the $10bn Kovykta natural gas project. BP operates Rusia, and Kovykta is key to its presence in...

Sibneft for sale?(Brief Article)(Statistical Data Included)
November 10, 2000... Roman Abramovich, Sibneft's presumed owner, is said to be planning a strategic sale of his oil assets The management of Sibneft could be gearing up to sell the company to an unidentified foreign buyer. A company source suggests its...

The last oligarch.(Roman Abramovich)(Brief Article)
November 10, 2000... President Vladimir Putin is slowly edging a key member of the Yeltsin era family' out of the political arena Time, it seems, has been called on the relentless expansion of Roman Abramovich's business empire. The reigning in of one of...

Sibneft/TNK bury the hatchet over Slavneft.(Tyumen Oil (TNK))(Brief Article)
November 10, 2000... Tyumen Oil (TNK) and Sibneft appear to have settled their battle for control of state-owned oil firm Slavneft. Their behind-the-scenes deal gives TNK the chance to become one of the most powerful players on the Russian market. The...

TNK stalls for time.(Tyumen Oil (TNK))(Brief Article)
November 10, 2000... Doubts remain about the willingness of Tyumen Oil (TNK) to accept Sidanco's Chernogorneft share swap terms, despite assurances that it is ready to be "flexible". TNK is seeking "adequate guarantees" from Sidanco shareholders that its proposed...

State grip on oil exports tightens.(Brief Article)
November 10, 2000... Russian prime minister Mikhail Kasyanov last week rubber-stamped a resolution establishing a new export commission. The new body is meant to increase state supervision of the oil and gas exports that bring in around 40pc of Russia's...

Rosneft eyes early upgrade.(Brief Article)(Statistical Data Included)
November 10, 2000... State-run Rosneft wants to start a $50mn reconstruction of the Nakhodka products terminal in Russia's far east. But high rail tariffs on shipments to the port cast doubt on whether it will be able to find enough users. Rosneft...

Russia resumes gas deliveries to Serbia.(Brief Article)
November 10, 2000... Gazprom resumed gas supplies to Yugoslavia last week after the Russian government decided to grant Belgrade credit for imports. In November and December, Yugoslav consumers will receive 254mn [m.sup.3] (4.2mn [m.sup.3]/d) at a price of...

Kazakhstan hands Pavlodar to MMG.(Pavlodar oil refinery)(Mangistaumunaigaz (MMG))(Brief Article)
November 10, 2000... The Kazakh government has transferred a 51pc stake in the country's 162,000 b/d Pavlodar oil refinery to west Kazakhstan producer Mangistaumunaigaz (MMG). Observers suggest that the deal may have put the country's largest refinery -- one...

Iran claims swaps pipeline progress.(Brief Article)
November 10, 2000... Iran has announced it will open the first stage of its 370,000 b/d swaps pipeline, delivering Caspian oil to Iranian refineries, by the end of this month. The news has confounded sceptics who had thought the project was on the verge of...

Russia faces energy `catastrophe'.(Brief Article)(Statistical Data Included)
November 10, 2000... Lack of investment means that Russian energy output cannot match the potential increase in demand. But a more efficient use of existing resources would help solve the problem. "We are standing on the threshold of an energy catastrophe,"...

FSU crude exports steady ...(Former Soviet Union)(Brief Article)(Statistical Data Included)
November 10, 2000... FSU crude exports in October through the Transneft pipeline system -- Russia's state-owned monopoly -- were 2.81mn b/d, down slightly on the previous month but up by more than 330,000 b/d on October last year. Exports by Russian companies...

... while product exports slide further.(Brief Article)(Statistical Data Included)
November 10, 2000... Product exports from FSU ports plummeted to a 20-month low of just 3.1mn t in October, down by 30pc on the previous month. Shipments were stifled by seasonal factors combined with export restrictions. Fuel oil exports were hardest hit,...

Russia & CIS.(Brief Article)(Statistical Data Included)
November 10, 2000... Russian gas output stable Russian gas output of 474bn [m.sup.3] in January-October is little changed on the same period last year. Gazprom accounts for almost 90pc (see table). But oil firms have boosted output to 25.4bn [m.sup.3], while...

Caspian/central Asia.(Brief Article)
November 10, 2000... US silent on alleged Mobil swap deal The US government last week was silent on persistent industry rumours that Mobil, prior to its merger with Exxon, is being investigated by US customs officials for illegally swapping Caspian crude...

Baltics.(Brief Article)
November 10, 2000... Klaipedos Nafta president fired The management of Klaipedos Nafta, operator of Lithuania's Klaipeda oil terminal, has dismissed general-director Pjatras Pareigis, effective 10 November. The main reason for his dismissal is a sharp drop...

Central/eastern Europe.(Brief Article)
November 10, 2000... Poland bargains over bypass Poland may look to renegotiate conditions of payments for gas it buys from Russia's Gazprom, in exchange for a deal allowing construction of a gas pipeline bypassing Ukraine (FSUE, 20 October, p2). "The Polish...

China pipeline stalled by disagreement.(Brief Article)(Statistical Data Included)
November 10, 2000... Russian hopes of pushing forward construction of an oil pipeline from eastern Siberia to China are beginning to fade. The failure to agree terms with China will postpone implementation for a year or more, say analysts. The proposed line...

Shares fail to consolidate.(Statistical Data Included)
November 10, 2000... Russian shares failed to consolidate last week's gains, driven downwards by company headlines. A healthier looking Wall Street had no positive impact. The Russian Trading System (RTS) ended the week 5pc lower, closing at 184.54 points --...

Czech gas privatisation within a year.(Brief Article)(Statistical Data Included)
November 10, 2000... The Czech government is looking for a single buyer for its 97pc stake in natural gas importer Transgas, plus its stakes in all eight of the nation's regional gas distribution firms. The government hopes to announce a buyer by August next year...

Sibneft signs new loan agreements.(Brief Article)(Statistical Data Included)
November 10, 2000... Sibneft signed two loan agreements against future oil exports in September worth a total of $280mn (see table). Sibneft's borrowing (2000) $mn Arranger Amount Participants Glencore 180...

Lukoil tries again in the US.(Brief Article)
November 10, 2000... Russian giant Lukoil is making a second attempt to enter the US retail market with the $71mn acquisition of Getty Petroleum Marketing, a remnant of oil giant Getty Oil. The Russian firm will acquire 1,300 retail stations in the northeastern...

Products market.(Brief Article)
November 10, 2000... Russian exports fuel arbitrage traffic * High refinery runs in northwest Europe have pushed Russian gasoil transatlantic and cracked fuel oil to Singapore. Straight-run fuel oil is in demand now that overproduction has brought down...

Crude market.(Brief Article)
November 10, 2000... Headlines buffet prices * News headlines continued to buffet a tightly supplied physical crude market. Outright prices climbed early in the week as unrest in Nigeria hit output and a cut in Iraqi supplies loomed. But the interruption to...

Russian crude exports.(Brief Article)(Statistical Data Included)
November 10, 2000... Crude exports from Russia, October 2000 '000t Exporter Novorossiysk Tuapse Total exports through Russia 3,024.0 483.4 Total exports by Russia ...

Netbacks.(Brief Article)(Statistical Data Included)
November 10, 2000... Russian crude netbacks 8 Nov Ventspils Butinge Urals (cif-fit) ($/bl) 30.63 30.63 Urals (cif-fit) ($/t) 223.60 223.60 Freight...

Sidanco claims breakthrough.(Sidanco to reacquire Chernogorneft from Tyumen Oil)(Brief Article)
November 3, 2000... TNK may be ready to return Chernogorneft to Sidanco. But a final deal has still to be signed Tyumen Oil (TNK) and Sidanco appear to be on the brink of a settlement over the return of Chernogorneft. Until this week, it had seemed that TNK...

Quiet revolution.(Gazprom undergoing change of executives)(Brief Article)
November 3, 2000... The resignation of Gazprom's deputy chairman is as significant as last week board meeting. Change is coming The resignation of Gazprom deputy chairman Valery Remizov may prove a milestone for the history of the Russian gas giant. His...