Total Oil

The partnership between Russia and Europe in the gas supply sector can’t be cut down easily and quickly

The partnership between Russia and Europe in the gas field sector cannot be cut  easily, but Europe is concerned with diversification of “blue fuel” supplies against the background of the Crimean events. Europe remembers well interruptions with the supplies in 2006 and 2009, the head of Total Gas & Power Philip Soke stated to the Reuters during the gas congress in South Korea.
“Russia and Europe won’t be able to divorce  supplies easily,” – Soke believes. But, according to him, taking into account risk of gas supplies to Europe through the Ukraine, the U.S. authorities may take up problem of export gas supplies more actively.
On the other hand, world gas market doesn’t expect large volumes of American LNG before 2017. The U.S. Ministry of Energy studies over 20 orders for LNG export, but it has given the go-ahead to only six of them since 2011.

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6 new contracts for $841 million are signed within Shah-Deniz 2 project

The partners on the development of the second stage of the Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea have signed 6 new contracts for $841 million, BP-Azerbaijan reports.
Previously, three contracts were signed with alliance Tekfen-Azfen, joint venture AMEC-Tekfen-Azfen and company KBR to the total amount of $2.337 billion for the construction and granting services in detailed design, project managements and provision.

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Fitch: oil and gas companies of EMEA – who wins and who loses because of crisis in the Ukraine

International rating agency Fitch Ratings notes that BG Energy Holdings Ltd («BG»: «A-» / forecast "Stable”), BP plc («A» / forecast "Stable”), Royal Dutch Shell plc («AA» / forecast "Stable") and Total SA («AA» / forecast "Stable”) are among oil and gas companies, which the agency rates in Europe, Middle East and Africa (EMEA), which can gain from potential change in energy relations between the EU countries and Russia in the course of time, while Gazprom («BBB» / forecast "Stable") and Naftogaz Ukrainy («CCC») are likely to be the losers.
According to the agency, global diplomatic row with Russia about the crisis in the Ukraine can help to change the approach to European energy security, which traditionally focused on diversification of gas transportation routes to the EU through a network of new pipelines, but did little for diversification of gas supply sources. The Fitch’s report, published today, analyzes the scenario according to which the EU countries could be forced to “review the approach to energy and economic relations with Russia in the course of time", the UK’s Secretary of State for Foreign Affairs William Hague noted.

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"Gazprom" prepares for the possibility of the introduction of sanctions by the EU

The company is trying to enlist the support of European customers before the possible the introduction of sanctions against Russia. The company offers them discounts on gas.
"Gazprom" is discussing the possibility of support in exchange for new concessions with European customers, two people close to "Gazprom" and one of the European companies told "the Vedomosti". The representatives of several European companies confirmed to "the Vedomosti" the fact of negotiations on the terms of contracts with "Gazprom", but refused to comment in detail. According to Bloomberg, the CEO of Eni ,Paolo Scaroni in an interview to Sole 24 Ore stated that by the end of April his company expects to conclude an agreement to modify the contract. A source close to the company clarifies that major changes need to retouch the "take or pay" rule. The E.On representative only stated that the partners are regularly reviewing the prices so that they are competitive.
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Foreign oil and gas companies to continue to invest into Russia

Foreign oil and gas companies are not going to refuse to work in Russia, despite the risk of the introduction of international sanctions against the country.
“We are absolutely committed to out investments in Russia,” – BP’s general director Bob Dudley stated at the conference for investors in London. The company is the largest private shareholder of Rosneft (19.75%). “That year, Rosneft had good results, that’s why it’s a part of our great set of assets,” – he said. The company estimated its share in the Rosneft’s profit in 2013 at $2.058 billion, in the 4th quarter – at $901 million. In 2012, BP received dividends in the amount of $456 million.
Rosneft has three more strategic foreign partner - ExxonMobil, Eni and Statoil. It works with them on the shelf in the Chukchi, Kara, Barents, Black, ​​Okhotsk and the Laptev Seas and is going to work at fields with difficult reserves in Western Siberia and the Volga region with the American and Norwegian companies. "We are observing the situation and will make necessary steps when necessary," - said a representative of Statoil to the Vedomosti, answered for the question whether the company will refuse to work in Russia in the event of the imposition of sanctions. According to him, the current activity of Statoil in Russia hasn’t changed.
 

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Total may leave Shah-Deniz project

French company Total may withdraw from the Shah-Deniz gas condensate field development project in the Azerbaijani sector of the Caspian Sea, 1news.az reports.

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The scheme of Yamal LNG project financing through RPIF to be determined in the 1st half of 2014.

The scheme of Yamal LNG project financing through RPIF (Russian Private Investment Fund) with foreign investors or through a joint Russian- Chinese fund will be determined in the 1st half of 2014, V. Dmitriev, the head of the Bank for Development and Foreign Economic Affairs, stated.
In October 2013, it became known that the Bank for Development and Foreign Economic Affairs is ready to finance the Yamal LNG project through the RPIF.

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Azerbaijan and Bulgaria to expand cooperation in the energy field.

Bulgaria is interested in expanding cooperation with Azerbaijan in the energy field, Dragomir Stoynevin, Minister of Energy , Economy and Tourism of Bulgaria, stated during a meeting with Rovnag Abdullayev, the head of SOCAR (State Oil Company of Azerbaijan).
According to him, the issue of Azerbaijani gas export to Europe is of great interest, and the Bulgarian government attaches great importance to diversification.

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Total increases its share in Novatek to 17%

Total increased its stake in Novatek to 17.4%, bought 0.8 of its shares in the 4th quarter of the last year, the French company reports.

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Novatek shifts the brunt of Yamal LNG financing to CNPC

Novatek owning 60% in Yamal LNG, the Russia largest gas liquefying project costing $27 billion will invest to the project by three times less than the shareholding participation presupposes. CNPC will bear most of investment; it got 20% in the project in December 2013. However Novatek continues looking for new partners that can get up to 10% in the project.

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