Archive for the ‘gazprom’ Category

Russia Increases Oil Production   1 comment

Russia, the world’s largest oil producer, has increased monthly crude output by 0.3 percent in May of 2013, to the highest level of the year,according to preliminary data from the Energy Ministry’s CDU-TEK unit.

Output of crude and condensate was 44.3 million metric tons, or 10.481 million barrels a day.

OAO Gazprom (GAZP), Russia’s gas export monopoly, boosted output by 5.8 percent to 353,000 barrels a day. OAO Rosneft (ROSN), the world’s largest publicly traded oil producer, and its subsidiary OAO TNK-BP produced 3.85 million barrels last month, up 0.3 percent from April, according to the data.

Russia set a post-Soviet-era production record of 10.49 million barrels a day in November. Soviet-era production in Russia peaked in 1987 at 11.48 million barrels a day. President Vladimir Putin has called for production to be maintained at more than 10 million barrels.

For more information on the Russian oil industry, contact RADA LLC, a leading provider of due diligence services in Russia, the Caucasus, and Central Asia.

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2013: The Year of the Snake   Leave a comment

year-of-the-snake

RADA conducts due diligence and business intelligence investigations in Russia, Ukraine, Belarus, Poland, Romania, Moldova, Latvia, Lithuania, Estonia, Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.

Highlights of Interview with Gazprom CFO Kruglov   Leave a comment

Russian natural-gas giant OAO Gazprom’s net profit in 2011 will probably rise 25% to $40 billion, Chief Financial Officer Andrei Kruglov said in an interview with Gazprom’s corporate magazine.

Earnings before interest, taxes, depreciation and amortization are expected to rise more than 30% to $60 billion, Kruglov said in the interview.

“The favorable external environment and a strict control of operations will bring the company increased profitability,” Kruglov said.

Gazprom expects higher prices for its gas sales in Europe, as well as higher export volumes, he said.

“Despite the increased tax burden on the gas industry, the company’s finances will continue to improve,” Kruglov said.

Exxon Mobil Invests in Sakhalin   2 comments

exxonmobil_logoThe Sakhalin regional government announced that a group led by U.S. ExxonMobil will invest about $2 billion into Russia’s Sakhalin-1 oil and gas project this year.

Gazprom has long said it needs the gas produced at Sakahlin-1 to cover domestic needs, while Exxon plans to export the fuel to China.

Exxon operates the $12 billion project along with Russian state oil firm Rosneft, Japan’s Itochu, Marubeni Japan National Oil and India’s ONGC.

Sakhalin-1 works under a production sharing agreement (PSA), which gives investors tax stability but makes it subject to special regulations. Any increase in spending delays and reduces the government’s income from the project.

The project has been producing oil for several years and reached peak production of 11.2 million tonnes in 2007.

It has been producing gas since 2005 and shipping small volumes to continental Russia. It signed a separate deal to supply China with 8 billion cubic metres of gas a year and hoped to start supplies next decade.

Gazprom, the world’s largest gas producer, itself has a rival plan to supply China from East Siberia via two links. It wants to buy gas from Sakhalin-1 at market prices but talks have been stalled for over a year due to a price disagreement.

Gazprom co-leads Sakhalin-2, a neighbouring project from Sakhalin-1, and liquefies all of the gas produced there.

Turkmenistan Demands Compensation from Gazprom   Leave a comment

ASHGABAT: Turkmenistan’s president blamed Russia’s state gas monopoly, Gazprom, for a pipeline blast that shut off the Central Asian country’s exports.

President gazprom Gurbanguli Berdymukhamedov accused Russia’s Gazprom of “technological errors” causing Wednesday’s blast, and demanded payment repairs and compensate Turkmenistan for damages.

The Foreign Ministry said last week the explosion occurred after the Russian gas monopoly decided, on short notice, to reduce the amount of gas it takes from Turkmenistan without giving enough time to reduce its flow into the pipeline network.

Gazprom has not commented on the incident, but Russian Foreign Minister Sergey Lavrov on Friday sought to downplay the incident describing it as “purely technical.”

Moscow has sought to strengthen its domination on gas supplies to Europe by striking a deal with Turkmenistan last year to purchase most of its natural gas. The contract was signed before the global financial crisis, and the dwindling energy prices resulted in Russia now paying Turkmenistan more than it could charge its European customers.

Focus on Azerbaijan   Leave a comment

azerbaijan1Azerbaijan may be the oldest petroleum producing region in the world, going back to the third and fourth centuries. Many Arabic and Persian authors refer to the production of oil on the Apsheron Peninsula.

Marco Polo also saw the oil. He commented that it was not good to eat, but understood that it could be used as a fuel or medicine.

There are also many 18th and 19th century accounts of the Zoroastrian Fire Temple at Surakhany, where the fire was fed by natural gas from a cavern.

Azeri oil “boomed” beginning in the 1870s. The ancient site of Surakhany retained its importance. Even though Russian capital predominated, foreign interests began to participate as well. British firms, in particular, were able to commence operations as a result of their purchase of operations from Hajji Zeynalabdin Taghiyev.

Production increased after the Revolution, and offshore exploration began. During the war, oil fields were staffed largely by women and veterans. The entire Caucasus region, particularly Baku, was of key strategic importance throughout the war.

After gaining its independence, Azerbaijan has sought-and been successful in obtaining-significant foreign investment not only for petroleum but other industries as well.

For example, the Shah Deniz field was discovered in 1999. A gas plant was built at Sangachal Termanal in 2007, and is now a leading gas producer.

Russian Oil Alliances: State of Play in Early 2009   Leave a comment

opec_question1In January 2009, a Russian national oil consortium created to run oil projects in Venezuela will also cooperate with Cuba’s state-run oil company Cubapetroleo, according to a memorandum signed between the two companies.

The deal was signed in the presence of Russian Deputy Prime Minister Igor Sechin and Vice President of the Cuban Council of Ministers Ricardo Cabrisas.

The oil and gas consortium of Russian companies working Venezuela, which includes Gazprom, Rosneft, TNK-BP, Surgutneftegaz and LUKoil, was formed in October 2008.

The Russian consortium is operated by Gazprom, while control of the Russian-Venezuelan oil and gas alliance is exercised by Venezuela’s state-controlled Petroleos de Venezuela S.A. (PDVSA).

Plans call for the export of oil  to the United States, China and Europe.

In late 2008, Shakib Khelil, the president of the Organization of Petroleum Exporting Countries (OPEC), that Russia would join the organization, increasing its ability to impact the crude market.

For some time, petroleum analysts have asserted OPEC’s abiility to check a sharp recent fall in crude prices depends largely on cooperation from non-OPEC producers such as Russia, Norway and Mexico.