Russia 100419 Basic Political Developments

Moscow Times: $500M Starting Price in Nenets Fields Auction

http://www.themoscowtimes.com/business/article/500m-starting-price-in-nenets-fields-auction/404145.html
19 April 2010

Reuters

The government will demand a starting price of about $500 million when it auctions the strategic Trebs and Titov oil and gas fields in the Arctic, Natural Resources and Environment Minister Yury Trutnev said Friday.

The fields, with estimated reserves in excess of 200 million metric tons, are among the largest untapped oil and gas deposits in Russia. Government officials have said they could be auctioned this year, although Trutnev did not say when they would be sold.

Russia is the only country in the world pumping in excess of 10 million barrels of oil per day, but future output growth is dependent on replacing mature deposits in western Siberia with hard-to-access fields in eastern Siberia and the Arctic.

Trebs and Titov, in the Nenets autonomous district, are classed as strategic, which rules out majority private ownership. Some analysts have said, however, that the economic crisis and the need to maintain growth in oil and gas production may have made the Kremlin more accepting of foreign investment.

India's state-run Oil and Natural Gas Corporation has expressed interest in the fields, the government said in March, ahead of Prime Minister Vladimir Putin's visit to India.

Itar-Tass: New gas field 26 bln cub m reserves confirmed in Irkutsk reg

http://www.itar-tass.com/eng/level2.html?NewsID=15038454&PageNum=0

19.04.2010, 08.23

IRKUTSK, April 19 (Itar-Tass) - The Russian Federal Agency for Subsoil Use has confirmed the deposits of the Naryaginskoye gas field that has been discovered in the territory of the Ust-Kut and Kazachinsko-Lenskoye districts of the Irkutsk region. The total area of the license field is 2,500 square kilometres, the initial gas-in-place under the categories C1+C2 exceeds 26 billion cubic metres, the directorate of the Irkutsk Oil Company (IOC) told Itar-Tass on Monday.

The drilling of a prospecting well with the depth of 3,420 metres in this area had been started in 2008, and in a year it gave a gas influx.

The Irkutsk Oil company is the user of 11 fields and sections of hydrocarbons located in the north of the Baikal area. Of them the Markovo, Danilovo, Yarakta and West Ayan fields are in commercial operation.

Last year the IOC produced over 350,000 tonnes of hydrocarbons and put into operation an oil treatment facility that makes it possible to increase the oil recovery volume up to 1.5 million tonnes annually. The company has made a decision in the construction of a lateral pipeline to the Eastern Siberia – Pacific Ocean (ESPO) main pipeline system.

The Irkutsk Oil Company was established in November 2000 by uniting several small oil and gas producers operating in Irkutsk region. Irkutsk Oil Company was the first in the region to enter into the operational stage of production and for all those years kept its leading position as the largest oil and condensate producer in Irkutsk region. 2009 oil and condensate production of the company was close to 370 thousand tonnes (2.8 million bbl).

Currently, as a holding company, Irkutsk Oil Company operates 11 oil and gas fields. Those fields are:

Yarakta field (license is hold by JSC ‘Ustkutneftegaz’);

Markovo field (license is hold by JSC ‘Ustkutneftegaz’);

Danilovo field (license is hold by ‘NK ‘Danilovo’, Ltd.);

Ayan field (license is hold by ‘INK-Neftegazgeologiya, Ltd.’);

Ayan license area (license is hold by ‘INK-Neftegazgeologiya, Ltd.’);

Potapovsky license area (license is hold by ‘INK-Potapovo, Ltd.’);

Bolshetirsky license area (license is hold by JV ‘INK-Zapad’);

West-Yarakta license area (license is hold by JV ‘INK-Zapad’);

Naryaginsky license area (license is hold by JSC ‘SNGK’);

Angaro-Ilimsky license area (license is hold by JSC ‘SNGK’);

Severo-Mogdinsky license area (license is hold by JV ‘INK-Sever’).

All of the above mentioned fields and licensed areas are located in Irkutsk region.

Joint Venture ‘INK-Sever’ was created by Irkutsk Oil Company and Japanese Oil, Gas and Metals National Corporation (“JOGMEC”) in April 2008, for the exploration of the north areas of Irkutsk region. Severo-Mogdinsky block exploration is the pilot project of this joint venture.

Irkutsk Oil Company owns INK-Service, Ltd., a fully functional service unit, responsible for drilling and work-over operations at the company’s fields. INK-Service has a proven record of successful drilling in the Eastern Siberia and is contracted by other operators in the region.

Irkutsk Oil Company is owned by CJSC ‘INK-Capital’, with European Bank for Reconstruction and Development as a shareholder among others. Irkutsk Oil Company currently employs some 850 people. Irkutsk Oil Company is a member of AssoNeft, the association of independent small and midsize companies and Irkutsk Chamber of Commerce and Industry since 2006.

According to the company's release, All Irkutsk Oil Company fields and operations are located in Irkutsk region. Irkutsk Oil Company has an active and constructive dialogue with the local governments and administrations, jointly finding the best solutions for the needs of the communities. Within the framework of the agreements with Irkutsk government, Irkutsk Oil Company continually helps schools, hospitals, and assists those who need it the most - orphans, retirees and people with disabilities.

We support sports and cultural events, health and education in the communities located in the northern part of the Eastern Siberia.

Irkutsk Oil Company is a responsible employer. It strives to create a safe, healthy, and stimulating environment for its employees.

The company’s active hiring policies help decrease the level of unemployment in the remote areas of Irkutsk region, which in turn supplements the local tax revenues. In 2006 and 2007, Irkutsk Oil Company was awarded with ‘Taxpayer of the year’ national award, which is given to the most responsible taxpayers.

The Irkutsk region has abundant mineral resources. Some of the country’ s largest mineral-bearing areas are located here, including the Lenskaya (gold), Mamsko-Chuiskaya (mica), Angarskaya (iron ore), Vostochno-Sayanskaya (rare metals) provinces and the Irkutsk coal basin. The Vostochno-Sibirsky saliferous (salt-bearing) basin is the largest in the world. About 11 tonnes of gold per year are produced in the region.

The most important mineral resources are hydrocarbons, gold, mica, iron, brown and bituminous coal, and table salt. The region also has abundant deposits of non-metallic raw materials for ferrous metallurgy.

The Irkutsk region is one of the most economically developed areas in the eastern part of the country. The leading industrial sectors are mining, the power industry, aluminium smelting, petrochemicals, engineering, and building materials. The forest, woodworking, and pulp and paper industries are currently undergoing intensive development.

19.04.2010

Oil and Gas Eurasia: TNK-BP Commissions Tyaminskoye Field in Uvat

http://www.oilandgaseurasia.com/news/p/0/news/7064

TNK-BP has commissioned the Tyamkinskoye field, which is part of the Uvat Project in southern Tyumen region, the company reported in a news release. Field production volume at the site is planned in excess of 80,000 tons in 2010 and about 400,000 tons in 2011. The total production at the Uvat fields is expected to rise by more than 30 percent compared to 2009 to reach about 4 million tons in 2010.    The Tyamkinskoye field belongs to the Central Hub of the Uvat Project that is being developed by TNK-BP. Three wells have been drilled in the field and one more is under construction. The new wells are to be drilled by the end of 2010. “Uvat Project production growth rates are yet another confirmation of that TNK-BP found a way to develop an entire oil province in southern Tyumen region. Tyamkinskoye will make a significant contribution to production growth because we managed to put it on stream five months earlier than planned. TNK-BP intends to continue developing Central Uvat fields, and we may possibly start developing Kosukhinskoye, where we successfully tested a well, before the end of this year “, said Sergey Brezitsky, Executive Vice President, Upstream, TNK-BP.Copyright 2010, TNK-BP. All rights reserved.

19 Apr, 2010 08:05 CET

CISIONwire: SHELTON PETROLEUM AB: SHELTON PETROLEUM READY TO SELL ITS FIRST RUSSIAN OIL

http://www.cisionwire.com/ext/shelton-petroleum-ab/shelton-petroleum-ab--shelton-petroleum-ready-to-sell-its-first-russian-oil
"We are very pleased with the good exploration results Shelton has achieved on the Rustamovskoye field. We have found oil in two of two wells and can now say that both show commercially-viable flows. Access to infrastructure in the area is good, and we expect to be able to sell our first Russian oil as early as this summer," says Robert Karlsson, CEO of Shelton Petroleum.

Shelton Petroleum has perforated a three-meter interval in the Upper Devonian oil bearing Kynovsko-Pashiysky sediments. Production rates indicate a flow rate of 200 barrels of oil per day from RS#2. The new test thus confirms the good reservoir properties and RS#2 will be put into production, which was indicated by the shorter drill stem test carried out at the end of last year. The first well on Rustamovskoye, RS#1, showed commercial flow rates in a test program that was completed at the end of 2008.

A number of producing oil fields are located nearby, and access to infrastructure is good in the area. This means Shelton Petroleum can commence production from the now tested exploration well with a minimum of investment. Initially, Shelton plans to transport oil by truck to a pipeline connection point located 20 kilometers from the drill site.

The testing of RS#2 was the final step in the Rustamovskoye exploration program. Shelton proceeds now to a production phase in Russia as well. During 2010 Shelton intends to commence production from the two exploration wells as well as to prepare for a large-scale development of the field, which will dramatically increase its cash flows and daily barrel production numbers. The drilling of the production wells in Russia is expected to begin during the first half of 2011. Shelton Petroleum also has a 45-per-cent interest in the producing Lelyaki field in Chernigov region outside Poltava, Ukraine. The total production of that field amounted to an average of 600 barrels per day in 2009, and the field is deemed to have a potential of over 3,000 barrels per day.

Bashkiria is one of Russia’s oil capitals. Oil accounts for half of the region’s economy. Bashkiria has the greatest refinery capacity in all of Russia.

For more information, please contact:

Robert Karlsson, CEO, Shelton Petroleum, tel [phone]
[e-mail]
www.sheltonpetroleum.com

Gazprom

Bloomberg: Gazprom May Reduce Ukraine’s Gas Price by 25%, Vedomosti Says

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a306ZOQ4jKhw
By Stephen Bierman

April 19 (Bloomberg) -- OAO Gazprom may charge Ukraine an average of $250 to $260 for 1,000 cubic meters of natural gas this year, down from $334 in the country’s budget, Vedomosti reported, citing two unidentified people who quoted Ukrainian Cabinet documents.

The two sides have an agreement in principle on the reduction, and Ukrainian Energy Minister Yuriy Boyko will travel to Moscow today for talks, the Moscow-based newspaper said.

To contact the reporter on this story: Stephen Bierman in Moscow at [e-mail]

Last Updated: April 19, 2010 01:54 EDT
April 19, 2010 11:30

Interfax: Shtokman Development chief Yury Komarov to step down

http://www.interfax.com/newsinf.asp?id=159371

MOSCOW. April 19 (Interfax) - Yury Komarov is stepping down from his post as CEO of Shtokman Development AG, the joint venture between Gazprom (RTS: GAZP), French Total and Norwegian Statoil that is the operator for the first phase of the project to develop the Shtokman field.

"Komarov is currently on vacation and does not plan to return," the company told Interfax.

However, a source familiar with the situation said: "Komarov's contract expired on April 15. They simply forgot to extend it. The shareholders are currently resolving the issue."

Komarov was a deputy CEO of Gazprom until April 2005. Six months later he was named to head Sevmorneftegaz, which holds the license to the Shtokman and Prirazlomnoye fields. He was appointed to the top job at Shtokman Development in 2008.

RTS$#&: GAZP

jh

Reuters: Russia to start Shtokman gas field development 2011-Putin

http://uk.reuters.com/article/idUKLDE63G0CV20100417
Sat Apr 17, 2010 3:05pm BST

MURMANSK, Russia, April 17 (Reuters) - Russia plans to start development of the giant Arctic Shtokman gas field in spring 2011, Russian Prime Minister Vladimir Putin said on Saturday.

"Nobody has cancelled the project. The investment decision will be made next year in spring and the work will start immediately afterwards," Putin told Murmansk regional governor Dmitry Dmitrienko.

Russian gas export monopoly Gazprom (GAZP.MM) had agreed with partners Total (TOTF.PA) and Statoil (STL.OL) to delay pipeline gas production from Shtokman to 2016 instead of 2013.[ID:nLDE6141NX]

Shtokman, located in the stormy Barents Sea and one of the world's largest gas fields, is expected to require $15 billion of investment in its first phase alone.

The field was discovered by the Soviet Union in 1988 and its start-up has been repeatedly delayed due to problems with financing. If the field is put on stream in 2016, it will come 16 years later than originally planned. (Reporting by Gleb Bryanski, writing by Dmitry Sergeyev; Editing by Toby Chopra)

RIA: Development of Shtokman gas field to start in spring 2011 (update 1)

http://en.rian.ru/business/20100417/158629838.html
22:1817/04/2010

The development of the Shtokman gas condensate field in the Russian sector of the Barents Sea will start in the spring of 2011, Prime Minister Vladimir Putin said on Saturday.

"In the spring of next year, an investment decision is due to be made and immediately after that, development work on the deposit will begin," Putin said.

He stressed that preparations are ongoing.

"Of course, it will take several years to put the field into operation and build essential infrastructure, but this must be done no matter what," he said.

Project operator Shtokman Development AG said in September companies developing the Shtokman field have so far invested $500 million.

Russian gas monopoly Gazprom has a 51% stake in the project, while France's Total and Norway's StatoilHydro have 25% and 24%, respectively.

Total costs are expected at $30 billion.

Shtokman, with estimated reserves of 3.8 trillion cubic meters, is to feed Nord Stream, a gas pipeline set to link Russia and the European Union via the Baltic Sea.

MOSCOW, April 17 (RIA Novosti) 

RBC: Gazprom Neft still interested in European oil refineries

http://www.rbcnews.com/free/20100419120806.shtml

      RBC, 19.04.2010, Torino 12:08:06.Gazprom Neft is still mulling options for purchasing oil refineries in Europe, deputy general director of the Russian oil company Anatoly Cherner told journalists today. "We are considering a large number of assets," he stated, adding that Gazprom Neft was looking only at assets that complied with its development strategy in the sphere of oil processing approved in 2009. Cherner mentioned an oil refinery in the UK that the company was no longer interested in, since it did not comply with these criteria.

      Gazprom Neft's representative also indicated that the company planned to expand its sales network in Europe, due primarily to the recent purchase of the Serbian company NIS.

19.04.2010

Oil and Gas Eurasia: New Motor Oil Brand G-Energy Introduced by Gazprom Neft

http://www.oilandgaseurasia.com/news/p/2/news/7071

Gazprom Neft has introduced a new motor oil brand G-Energy to the market. The brand presentation was held in Turin (Italy) in the offices of Italdesign-Giugiaro, an industrial design leader who developed the brand’s visual concept.

The brand’s product line includes synthetic and semisynthetic motor oils that meet the requirements of the world automobile manufacturers. G-Energy brand will cover products designed for present-day European, American and Japanese cars and commercial vehicles. Before end 2010, G-Energy product range will comprise of more than 40 names, including a special oil product line for car-care services. The sales of G-Energy products are to be launched simultaneously in Russia and Europe.

G-Energy motor oils are produced at the European Gazpromneft-Lubes production facility in Bari (Italy). The factory in Bari represents an advanced hi-tech facility capable to yield 30 thousand tons of motor oil and 6 thousand tons of viscous lubricants per year. The factory is ISO certified for motor oil and lube production, packaging, storage and sales.

Gazprom neft