FSU Energy articles from November 2004

FSU Energy archives from November 2004

Buyer beware: a stake in Yuganskneftegaz is up for grabs next month, but there is plenty to make western firms think twice.
November 26, 2004... Most of Yukos' senior management is now outside Russia amid an apparent escalation of the campaign against the company by the Russian authorities. A Yukos source confirms that chief financial officer Bruce Misamore and six other top...

Crisis in Ukraine: the protesters in Ukraine are hoping for a Georgian-style 'rose revolution'. It is unlikely to happen.(Editorial)
November 26, 2004... The scenes being played out on the streets of Kiev this week have a familiar feel to them. Massive street demonstrations in protest at an allegedly rigged election seem to have become a regular fixture of political life in the former Soviet...

World Bank pans Gazprom-Rosneft merger.(News)
November 26, 2004... The World Bank has criticised the proposed Gazprom-Rosneft merger and the apparent stalling of gas sector reform in Russia. Meanwhile, Gazprom's latest financial results have come as a shock to analysts, many of whom had hoped for...

Yushchenko victory would bring big changes.(News)(Viktor Yushchenko)
November 26, 2004... If continuing popular protest results in Viktor Yushchenko emerging as final victor in Ukraine's disputed presidential election, there are likely to be significant changes in the country's energy sector. "It's no secret that a Yushchenko...

Local content wrangles dog Sakhalin projects.(Sakhalin)
November 26, 2004... The Shell-led Sakhalin Energy consortium developing the Sakhalin II project in Russia's far east has made significant progress in selling liquefied natural gas (LNG) to North America and Japan this year. But the question of local content...

Red tape.(Sakhalin)(impact of bureaucracy on petroleum industry)
November 26, 2004... Western oil firms continue to complain that their projects are being slowed down by Russia's cumbersome bureaucracy. Securing permits from the authorities remains a major obstacle to faster or more effective work at Sakhalin, say western...

Governor's balancing act.(Sakhalin)(Ivan Malakhov)
November 26, 2004... The death of Sakhalin governor Igor Farkhutdinov in a helicopter crash in August 2003 was a major blow for western oil companies in Sakhalin. Unusually among Russian regional governors, Farkhutdinov was a pragmatic and far-sighted figure, who...

Whale issue rumbles on.(Sakhalin)(Sakhalin Energy, grey whale feeding area)(Brief Article)
November 26, 2004... Sakhalin Energy continues to come under fire from environmental campaigners over its plans to build a pipeline crossing a grey whale feeding area. Concerns about the issue have held back funds for the second phase of the Sakhalin II project...

The rush to market.(Sakhalin)(contracts)
November 26, 2004... The Asia-Pacific market is the key focus for Sakhalin investors, thanks to rising demand, a desire to diversify away from Mideast crude supplies and, in Japan, concern about dependence on nuclear energy. Sakhalin Energy says it could...

Khristenko: going for growth: the Russian state is keeping a close eye on every aspect of energy sector development, industry and energy minister Viktor Khristenko told Argus in a recent interview. Increasing output and exports remains a priority.(Interview)(Interview)
November 26, 2004... What are the government's priorities in terms of oil production and exports? Russia has a powerful fuel and energy potential, which serves as a foundation for the development of the Russian economy and is a tool of domestic and foreign...

Russian firms to boost CPC exports.(Trade)
November 26, 2004... Russian firms are increasing crude exports through the Caspian Pipeline Consortium (CPC) pipeline using the new Kropotkin rail terminal, 230km northeast of Novorossiysk. Next month, at least 400,000t (94,000 b/d) of Russian crude is...

Russia plans Black Sea rise.(Trade)
November 26, 2004... Crude exports from Black Sea ports look to rise next month despite the usual winter delays in the Turkish straits. Black Sea ports are set to handle 1.27mn b/d next month, 23,000 b/d more than scheduled for November. Exporters from...

Lukoil to boost Vysotsk volumes in 2005.(Trade)(Brief Article)
November 26, 2004... Lukoil plans to ship 5mn t of crude and products through its new Vysotsk terminal on the Gulf of Finland next year. The oil company is financing the extension of railway infrastructure near Vysotsk to handle the extra oil. Capacity at Vysotsk...

Kazakh firm sells joint-venture stakes.(Central Asia)
November 26, 2004... Kazakh state-owned oil and gas company Kazmunaigaz has agreed to sell its stakes in three joint ventures developing oil fields in western Kazakhstan (see table). Canadian company Nelson Resources, which bought the Arman stake, also bid...

Ageing pipeline threatens Turkmen gas exports.(Central Asia)
November 26, 2004... Turkmen natural gas production and exports could fall this year following a fatal accident that destroyed a compressor station on the Central Asia-Centre (CAC) pipeline in Kazakhstan earlier this month. November exports by...

Nervous equity investors tread water.(Stock markets)
November 26, 2004... Moscow's benchmark RTS trading system fell over the week, after tax authorities gave Yukos official notification of their tax check on its finances for 2002 (FSUE, 12 November, p11). The final bill looks set to be even higher than original...

Vityaz sells direct to Japanese utility.
November 26, 2004... Shell-led Sakhalin Energy has loaded the first cargo of its Vityaz light sweet crude direct to a power utility. All previous cargoes have been supplied to refiners. The 170,000 bl cargo, which was loaded on 20 November, was delivered to...

Lukoil strikes water at Azeri well.(Brief Article)
November 26, 2004... Russia's Lukoil may have to shut its first exploration well at the offshore Yalama structure (D-222) on the Azeri-Russian border in the Caspian Sea because of technical problems, says a source at Azerbaijan's state-owned Socar. The source...

Azerbaijan ups crude exports.(Brief Article)
November 26, 2004... Azerbaijan exported 832,800t (196,000 b/d) of crude in October (see table). Urals shipments by state-owned Socar from Russia's Novorossiysk in October rose as Socar increased cargo size to by 5,000t to 135,000t. Total Azeri exports in the...

Chimkent resumes processing.(Brief Article)
November 26, 2004... PetroKazakhstan's 160,000 b/d Chimkent refinery in Kazakhstan resumed operations on 19 November after month-long maintenance. The plant will not shut for maintenance next year. The shutdown and a drop in fuel oil output at the 104,000 b/d...

Mol to buy Shell Romania.(MOL Rt, Shell Romania Exploration B.V.)(Brief Article)
November 26, 2004... Hungary's Mol has agreed to buy Shell Romania's 59 retail stations, as well as its aviation, lubricants, wholesale and marine businesses. Shell says the deal should be completed by "early 2005". Neither side would reveal the price, but Tamas...

Looking ahead.(Calendar)
November 26, 2004... * Refining and Petrochemicals in Russia and the CIS. 30 November-2 December. Vienna. www.theenergyexchange.co.uk * Russian and CIS Oil and Gas Investment Forum. 1-2 Dec. Moscow. www.theenergyexchange.co.uk * Energy Trading and...

Lukoil to boost crude exports to China.(OAO Lukoil)(Brief Article)
November 26, 2004... Russian oil firm Lukoil may increase crude shipments to China's CNPC to as much as 32,000 b/d (400,000t) in the first quarter of 2005. Lukoil is due to export 70,00090,000t to China by the end of this month and raise shipments to...

Gasoil gains but fuel oil fades.(Products market)(Brief Article)
November 26, 2004... * Higher crude futures over the week and a surge in diesel demand pushed up Russian gasoil prices. But fuel oil was weaker as traders struggled to find outlets for surplus supply. * Gasoil futures were much higher on the week, but...

Products prices.(Products market)(Brief Article)(Illustration)
November 26, 2004... Products prices 24 Nov $/t Chg on 17 Nov Baltic ports (fob) Russian gasoil 437.13 - 438.13 +23 M-100 (straight-run) 103.51 - 105.51 -13...

Freight rates.(Products market)(Brief Article)(Illustration)
November 26, 2004... Freight rates 24 Nov Rate WS ($/bl) Novorossiysk to Augusta (Italy) Clean products 30,000t 410 3.12 Fuel oil 30,000t ...

Crude prices.(Crude market)(Brief Article)(Illustration)
November 26, 2004... Crude prices 24 Nov Chg on $/bl 17 Nov diff to BFO NW Europe BFO (dated) 42.49-42.55 +2.63 -- Urals (cif) ...

Freight rates.(Crude market)(Brief Article)(Illustration)
November 26, 2004... Freight rates (Capital Shipbrokers) 24 Nov WS Rate ($/bl) Novorossiysk to Augusta (Italy) Crude 130,000t 370 2.88 Crude 80,000t 400 ...

Delays boost Mediterranean Urals.(Crude market)(Brief Article)
November 26, 2004... * Crude prices reversed earlier losses over the week, with dated BFO climbing back up over the $40/bl mark. Forecasts of a cold winter, low heating stocks and concerns over supply after a pipeline to Iraq's southern Basrah oil terminal was...

Russian refinery output, October 2004.(Russian refinery output)(Illustration)
November 26, 2004... Russian refinery output, October 2004 '000t Crude Crude throughput Crude throughput Oct % chg throughput...

Russian crude netbacks.(Netbacks)(Illustration)
November 26, 2004... Russian crude netbacks 24 Nov Primorsk Butinge Navo- rossiysk Urals (cif-fit) ($/bl) 36.92 36.92 36.82...

ExxonMobil to 'exit' Zafar: the US major may be about to quit its two remaining exploration projects in Azerbaijan.
November 12, 2004... ExxonMobil is on the brink of pulling out of its two remaining exploration projects in the Azeri sector of the Caspian, according to sources at Azerbaijan's state-owned Socar. If true, this will be the latest in a string of withdrawals by...

A very Polish scandal: the wave of controversy engulfing Poland's oil sector is closely linked with next year's elections.(Editorial)
November 12, 2004... Over the past few months a major scandal has flared up in Poland centred around the country's oil sector. It is a murky affair with allegations of bribery and corruption in high places and claims of a conspiracy to allow Russian firms a...

Russia's China exports double on year.(News)
November 12, 2004... Russia overtook Saudi Arabia and Angola to become the biggest exporter of crude oil to China in September, according to official Chinese data. And China's overall imports of Russian crude in January-September were double the level of the same...

Political decision on bypass line nears.(News)
November 12, 2004... The proposed Burgas-Alexandroupolis pipeline from Bulgaria's Black Sea coast to the Greek Aegean seems to be back in the running as a potential bypass for crude shipments via the Turkish straits. But commercial terms have still to be agreed...

Sakhalin Energy finalises Japan LNG deal.(News)
November 12, 2004... Sakhalin Energy, the Shell-led consortium developing the Sakhalin II project, has finalised a liquefied natural gas (LNG) sales agreement with Japanese utility Tokyo Electric Power (Tepco). The 22-year deal, which starts in April 2007,...

Menatep says 'still no deal' over Yukos.(News)(Menatep group;YUKOS Oil Co.)
November 12, 2004... The Menatep group representing core Yukos shareholders denies that it is trying to dispose of its 61pc stake the embattled oil company. Menatep managing director Tim Osborne this week tells Argus that he is not aware of any negotiations....

Eon takes over Mol's gas interests.(Eastern Europe)
November 12, 2004... German energy giant Eon is to take control of the gas interests of Hungarian company Mol, significantly extending its presence in the central and east European market. Eon will buy 75pc of Mol's gas trading, wholesale and storage...

Is Kulczyk pulling out of PKN?(Eastern Europe)
November 12, 2004... Poland's richest man, Jan Kulczyk, has reduced his stake in oil company PKN Orlen amid deepening controversy about his involvement in the firm. Kulczyk's firm, Kulczyk Holdings, reduced its stake in PKN from 5.6pc to 4.78pc on 2...

Lukoil steps into China breach.(Exports and trade)
November 12, 2004... Lukoil is preparing to replace Yukos' crude exports to state-owned Chinese company CNPC, which were halted in late September. The first trial shipment of around 70,000t (511,000 bl) is expected to be delivered some time next month, a...

Russian rail exports down on Yukos' China cut.(Exports and trade)
November 12, 2004... Russian crude exports by rail fell again last month, largely because troubled oil company Yukos has decided to halt shipments to China's CNPC (see above). But a rise in shipments from northern ports prevented a steeper overall decline. ...

Mediterranean sweets slide.(Exports and trade)
November 12, 2004... The value of low-sulphur crude in the Mediterranean has crashed relative to dated BFO in recent weeks as demand for prompt oil has eased, amid rising crude supplies. Caspian light CPC Blend has fallen from a premium of 60 cents/bl to...

PetroKazakhstan wants extra Iran exports.(Exports and trade)(Brief Article)
November 12, 2004... PetroKazakhstan has asked the Kazakh energy ministry for permission to export more crude to Iran. The Canadian producer wants to divert exports of its Kumkol crude away from the Aktau-Baku-Batumi route across the Caucasus, as a result of...

Transneft seeks tariff hike.(Russia & CIS)(Brief Article)
November 12, 2004... Oil pipeline monopoly Transneft has asked the federal tariff service for permission to increase pipeline tariffs by 12.6pc from 1 January. Transneft applies for tariff increases each year in line with inflation, which is expected to exceed...

Sakhalin I starts pipeline construction.(Russia & CIS)(Brief Article)
November 12, 2004... Sakhalin I leader ExxonMobil this week announced the start of construction of a 240,000 b/d pipeline between Sakhalin Island and the Russian mainland. The 225km line will transport crude from the Chaivo field across the Tatar strait to the De...

Russia launches national oil exploration strategy.(Brief Article)
November 12, 2004... Russia's natural resources minister Yuri Trutnev was due on 11 November to present a strategy for exploration and production of oil and gas in 2005-20. He wants spending of Rbs1.5 trillion ($52bn) on developing new reserves by 2020, with...

Rosneft awaits Seoul's acceptance.(Russia & CIS)(Brief Article)
November 12, 2004... Rosneft has revealed terms of the Sakhalin shelf exploration projects offered to South Korea's state-owned KNOC under a memorandum of understanding signed by the two companies in September (FSUE, 24 September, p5). KNOC was offered 40pc in...

Looking ahead.(Calendar)
November 12, 2004... * Sakhalin Oil and Gas. 15-18 Nov ember. London. www.ibcenergy.com * Refining and Petrochemicals in Russia and the CIS. 20 November-2 December. Vienna. www.theenergyexchange.co.uk * Russian and CIS Oil and Gas Investment Forum. 1-2...

Ministry auctions new Siberian blocks.(Russia & CIS)(Brief Article)
November 12, 2004... Four upstream blocks in the Yamal-Nenets autonomous of west Siberia will be put up for auction on 14 December, in line with the licensing programme of the ministry of natural resources (FSUE, 29 October, p5). Both Russian and foreign...

Refinery deliveries fall.(Russia & CIS)(Illustration)
November 12, 2004... Russian and CIS refineries received 4.91mn b/d (20.86mn t) of crude in October, compared with 5.2mn b/d in September. October crude exports by pipeline to non-CIS destinations hit a new record (FSUE, 5 November, p8). Crude shipments to...

Itera bets on Kalmykia.(Russia & CIS)(Brief Article)
November 12, 2004... Independent gas producer Itera plans to invest $160mn in exploration in the Kalmykia autonomous republic in southern Russia, where it has licences for 11 blocks. The company is set to drill 18 exploration wells in line with the licence...

Kiev recalls product export registration.(Russia & CIS)(Brief Article)
November 12, 2004... The Ukrainian government plans to introduce the compulsory registration of product export agreements, say refining industry sources. The government declines to comment. The registration procedure will be similar to one introduced in October...

Azeris sign new onshore PSA.(Caspian/central Asia)(Production Sharing Agreement)(Socar)(Brief Article)
November 12, 2004... Azeri state-owned oil firm Socar has signed a 25-year production-sharing agreement (PSA) with UK firm Caspian Energy to develop the Kyurovdag onshore field 150km southwest of Baku. Kyurovdag is being developed by UK-Azeri joint venture...

Slovakia offers Transpetrol buy-back.(Central/eastern Europe)(Brief Article)
November 12, 2004... Slovakia is ready to buy back the 49pc of crude pipeline operator Transpetrol owned by Yukos. The beleaguered Russian oil firm acquired the stake in 2002 for $74mn (FSUE, 4 October 2002, p6). Transpetrol operates the 515km Slovak section of...

Yukos 'deal' rumour moves market.(Stock markets)
November 12, 2004... The Russian equities market picked up after 8 November. Investors seized on comments by Yukos chairman Viktor Gerashchenko that key shareholder group Menatep is considering selling up as evidence of an impending deal between Yukos core...

TNK-BP eves same assets as Rosneft.(News)(Brief Article)
November 12, 2004... TNK-BP looks set to compete with state-owned Rosneft for the Lodochnoye field in Siberia's Krasnoyarsk region, which is scheduled to be auctioned on 10 December. Both firms have upstream assets in the same area and want to boost their...

Bogdanchikov hopes for export share.(News)
November 12, 2004... Gazprom and Rosneft are currently working on a feasibility study to determine the shape of the planned Gazpromneft subsidiary, which is supposed to be responsible for oil and condensate production once the two companies are merged. ...

Sibneft gets a favourable loan.(News)(Brief Article)
November 12, 2004... Sibneft has secured a $160mn syndicated loan at an interest rate of 1.4pc over the London interbank offered rate (Libor)--an impressively low rate, observers say. Sibneft will use the funds for debt refinancing and working capital. "This...

No outlet for surplus fuel oil.(Products market)(Brief Article)
November 12, 2004... * Prices tumbled last week, mainly in response to further corrective selling on crude futures in London and New York. Oversupply has put pressure on fuel oil, while declining exports failed to shore up gasoil prices as end-users held off in...

Products prices.(Products market)(Brief Article)(Illustration)
November 12, 2004... Products prices 10 Nov Baltic ports (fob) $/t Chg on 3 Nov Russian gasoil 414.94 - 415.94 -15 M-100 (straight-run) 133.83 - 135.83 -22 M-100 (cracked) ...

Freight rates.(Products market)(Brief Article)(Illustration)
November 12, 2004... Freight rates 10 Nov Rate WS ($/bl) Novorossiysk to Augusta (Italy) Clean products 30,000t 360 2.74 Fuel oil 30,000t...

Crude prices.(Crude market)(Illustration)
November 12, 2004... Crude prices 10 Nov $/bl Chg on 3 Nov diff to BFO NW Europe BFO (dated) 42.50 - 43.56 -1.89 -- Urals (cif) 35.90 - 35.96 -1.39 ...

Freight rates.(Crude market)(Brief Article)(Illustration)
November 12, 2004... Freight rates (Capital Shipbrokers) Nov 10 WS Rate ($/bl) Novorossiysk to Augusta (Italy) Crude 130,000t 370 2.88 Crude 80,000t 400 ...

Urals gains strength.(Crude market)(Brief Article)
November 12, 2004... * Crude prices were down by more than $2/bl over the week, with December BFO sliding under $45/bl. Ample crude supply has been weighing on prices and US stocks are building to comfortable levels ahead of winter. * Dwindling supplies from...

Russian rail exports/imports, October 2004.(Russian rail data)(Illustration)
November 12, 2004... Russian rail exports/imports, October 2004 '000t % chg YTD Crude '000 b/d Sep '000 b/d Overland Afghanistan Armenia...

Russian crude netbacks.(Netbacks)(Illustration)
November 12, 2004... Russian crude netbacks 10 Nov Primorsk Butinge Navo- rossiysk Urals (cif-fit) ($/bl) 35.93 35.93 36.03...

Pipeline decision near: Moscow could approve a new far east pipeline soon. But it has yet to decide on expanding BPS.
November 5, 2004... The Russian government is poised to approve construction of a far east pipeline before the end of the year, but it remains undecided over development of northern export routes. The government has been instructed to make a formal decision...

Now is the time: Russian firms want long-haul export routes rather than more capacity aimed at Europe. It is time to diversify.(Editorial)(Editorial)
November 5, 2004... In recent years, pipeline monopoly Transneft has tended to get its way when it comes to pipeline projects inside Russia. So the spectacle of a visibly put-out Semyon Uainshtock complaining this week about government indecision on...

Government hits Yukos with massive new bills.(News)
November 5, 2004... Yukos will ask shareholders to consider bankruptcy or liquidation on 20 December after the government issued new tax claims totalling around $10bn. Chief executive Steven Theede said this week that the firm cannot continue to operate...

New export route needed for northern projects.(News)
November 5, 2004... TNK-BP plans to invest $35mn in exploring four fields in the Bolshekhetskaya depression in Siberia. The firm claims the fields contain 830mn bl of crude and condensate as well as 117bn [m.sup.3] of gas. But to trans port crude out of the...

CPC crude loadings hit record.(News: Caspian Pipeline Consortium)
November 5, 2004... The Caspian Pipeline Consortium (CPC) terminal near Novorossiysk on the Black Sea handled record volumes of CPC Blend crude last month. The outlet shipped 533,200 b/d (2.11mn t) of oil, an increase of 12pc on September. The rise follows...

TCO considers Baku-Ceyhan.(News: Tengizchevroil consortium )(Brief Article)
November 5, 2004... Kazakhstan's Tengizchevroil consortium (TCO) appears to be considering shipping Tengiz crude through the Baku-Tbilisi-Ceyhan (BTC) pipeline, as an insurance policy against being unable to expand the Caspian Pipeline Consortium (CPC) route....

Eni awards Kashagan pipeline contract.(News)(Brief Article)
November 5, 2004... The Eni-led consortium developing Kazakhstan's giant Kashagan field has awarded a $520mn contract to build and install an offshore pipeline system to Saipem, an engineering affiliate of Eni. Milan-based Saipem says it will install the...

Total hopes for the best.(News)
November 5, 2004... Total's vice-president for Russia, Inessa Varshavskaya, has outlined the French company's plans in the country. They are wide-ranging, but the company faces a number of obstacles. The French firm is ready to invest $600mn in the next...

Poland investigates Gdansk sale.(News)(Brief Article)
November 5, 2004... A Polish parliamentary commission is turning its attention to the failed privatisation of the Gdansk oil refinery two years ago. The commission was originally set up to investigate alleged wrongdoing in the dismissal of Andrzej...

Vekselberg takes on gas role at TNK-BP.(News: Viktor Vekselberg )(Brief Article)
November 5, 2004... Viktor Vekselberg will resign as TNK-BP's chief operating officer on 15 November to take the role of executive director for gas development. He will be replaced by current deputy chief operating officer Larry McVay. Vekselberg will remain as...

Driving demand.(Gasoline)
November 5, 2004... Rapid expansion of private car ownership in Russia in recent years has prompted a big rise in domestic gasoline demand as well as a shift in consumption patterns. Russian gasoline consumption has been rising steadily since 2000 when the...

Prices approach US levels.(Gasoline)
November 5, 2004... Rising gasoline prices have prompted accusations that oil firms have acted in concert to rig the market, with calls from the public and politicians for the government to act. But Moscow is not convinced that state intervention will help. ...

Crude exports hit record high.(Trade)(Industry Overview)
November 5, 2004... Crude exports through Russia's Transneft pipeline system hit a record high of 4.08mn b/d in October. Increased deliveries through the Black Sea ports of Novorossiysk, Odessa and Pivdenne, together with a rise in shipments through the Baltic...

Product exports steady.(Trade)(Illustration)
November 5, 2004... Higher fuel oil shipments meant product exports from FSU ports steadied at 7.8mn t after falling for two successive months. Overall fuel oil exports rose by 4pc on an average daily basis to 3.98mn t, although shipments from Baltic ports...

Investors want bigger budgets.(Sakhalin)
November 5, 2004... The western-led consortiums developing the two Sakhalin production-sharing agreement (PSA) projects have asked the government for permission to increase their 2005 budgets. Deputy industry and energy minister Ivan Materov said in Moscow...

Gazprom highlights China.(Sakhalin)
November 5, 2004... Gazprom's impending arrival in the ExxonMobil-led Sakhalin I consortium is likely to increase the partners' focus on China as a potential export market. The gas giant will gain a foothold in Sakhalin I when it takes over Rosneft, which...

Bogdanchikov will head Gazpromneft.(Russia & CIS)(Brief Article)
November 5, 2004... Gazprom's chief executive Alexei Miller has appointed Rosneft president Sergei Bogdanchikov as director-general of Gazpromneft, which will comprise the oil assets of Rosneft under the Gazprom/Rosneft merger plan. Miller signed a formal ruling...

Volga-Don route blocked.(Russia & CIS)(Brief Article)
November 5, 2004... The Volga-Don waterway, which carries crude and product exports to the Black Sea, will be blocked until at least 21 November following an accident. A dry cargo vessel crashed into the Konstantinovsky lock on 1 November in the Rostov region of...