Russia Oil and Gas

The decision about transition of some oil production projects to taxation of additional income from oil production

The Russian profile ministries and agencies discuss the possible mechanism for the transition of some oil production projects to taxation of additional income from oil production (NDD). The decision can be agreed in 2014, 2 officials close to the discussion claim.
A source in the Ministry of Finances says that the measure is unlikely to be applied to the whole oil sector that’s why they work with the companies in order to present it for the separate projects. The use of NDD will be fixed in the Tax Code, and the projects classifier will be introduced to the Code for that.
A source in the Ministry of Energy confirms to the agency that this variant is discussed. The Ministries are going to present their coordinated position to the Government in December.

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The amendments to the law for LNG liberalization initiated by Lukoil and Rosneft have not been agreed

On November 20th 2013, the State Duma Energy Committee rejected the amendments to the law  for LNG exports liberalization initiated by Lukoil and Rosneft, the representative of the Committee I. Grachyov says. He claims that they introduced just 3 stylistic amendments.
The law  will be presented in this form to the second hearing on November 22nd 2013, and can immediately pass through to the third.
Under the law , access to LNG exports can be granted to Rosneft and Yamal LNG project realized in accompany with Novatek, besides from Gazprom. The Ministry of Energy evaluates that the corresponding structure of the sole export channel in the part of LNG exports gives no opportunity to fully provide designated financing of the construction of LNG plants.

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In 2013-2015, investments into Vankor to be about 92.1 billion rubles

In 2013-2015, investments into development of the Vankor group of  fields will make up about 92.1 billion rubles. The synergistic effect from development of these fields will be about $2 billion, Rosneft reports.
On November 8th, the Rosneft’s Board of Directors approved Vankorneft as the operator on the development of the Lodochnoye, Suzunskoye and Tagulskoye fields, as well as on the construction of a gas turbine electric power plant (150 MW) to provide them with electricity.
After the acquisition of BP-TNK’s assets, which include these deposits, by Rosneft, it was decided to work out the projects of their joint development by Vankorneft to reach a maximum synergy. The integration of the fields will increase the Rosneft’s resource base in the region by over 350 million tons of oil.

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On November 20, the daily oil and gas condensate output was 1.4471 million tons in Russia

On November 20, the daily oil and gas condensate output was 1.4471 million tons in Russia, the Central Dispatch Department of the Fuel and Energy Sector reports. Production was 561,600 tons in Rosneft, 237,300 tons in Lukoil, 168,700 tons in Surgutneftegaz, 136,600 tons in Gazprom Neft, 72,200 tons in Tatneft, 45,500 tons in Bashneft, 55,500 tons in Gazprom and 24,000 tons in Russneft.
Translated by Nadezhda Poltoratskaya
Source:  http://www.angi.ru/news.shtml?oid=2806921

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In January – September, Alliance Oil halved its net profit by ISA

In January – September, Alliance Oil halved net profit by ISA to $145.8 million. It also reduced revenue by 10% to $2.79 billion, EBITDA by 12% to $499.1 million, and pretax profit by 43% to $214.1 million.
In Q3, it gained net profit of $61.7 million compared to $132 million in Q3 2012, revenue of $1.01 billion (+12%), and EBITDA of $175.1 million (+18%).
In October, it extracted 66,200 barrels in oil equivalent a day, including 5,800 barrels in oil equivalent a day gained in the joint venture with Repsol. The company awaits doubling in oil production in 2013.

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Open auction for the South-Tanlovsky subsoil area in the Yamal-Nenets Autonomous District is announced

The Subsurface Department in the Ural Federal District has announced an open auction for the South-Tanlovsky subsoil area – for geological survey, exploration and production of hydrocarbons. It includes a part of the Meretoyakhinskoye oil field, a part of the Verkhnepurpeiskoye oil and gas condensate deposit, the South-Tanlovskoy oil and gas and the Soloviynnoye gas condensate fields.

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Gazprom Neft places 10-year eurobonds for $1.5 billion with interest rate of 6% per annum

Gazprom Neft places 10-year eurobonds for $1.5 billion with interest rate of 6% per annum. On Wednesday, the company set price guidance at 6.125%, and précised it later at 6-6.125%.
The meetings with the investors were held on November 18-19 in London and New York. The issue organizers are Credit Agricole, JPMorgan, Bank of America Merrill Lynch and Mizuho.
Gazprom Neft is a 95.68% property of Gazprom. In 2012, it increased net profit by 10.2% to 176.7 billion rubles by ISA and by 10.4% to 84.505 billion rubles by RAS.

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Myasnikovich and Medvedev discuss oil balances till the end of 2013 and for 2014

The Prime Minister of Belarus, Mikhail Myasnikovich and the Russian Prime Minister, Dmitry Medvedev have discussed issues on oil balances till the end of the current year and for 2014. The meeting was held within the session of the Council of the CIS’s Government Heads in St. Petersburg today.

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How Russian oil flow to Europe through Switzerland

Although Switzerland is not even in the top-50 major countries and doesn’t have extensive historical ties with the former overseas colonies, this hasn’t prevented the country to becoming the global center of the commodity trading business. The country managed to beat  Great Britain in this battle, although the largest commodity companies of the Old World are registered there.
The informal confrontation between London and Geneva began in the mid-70s of the last century. For a long time, till the mid-90s, the UK capital led in athepoken competition. Geneva was actually helped by aa major event, in 1991 the Soviiet Union collapsed, and industry giants, which became private companies, began to urgently look for opportunities to export their products to the West. Switzerland, which is characterized by liberal legislation in the area of trade operations, was very welcoming in this case.
The Oil companies were the first: small and poorly integrated companies hastily looked for the global traders to get a stable sales channel. According to the experts of the Geneva Association of Trade , three quarters of Russian exports of oil have passed through the country at some point. And this is despite the fact that there is no large oil companies in the country!

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Mikhail Gutseriev goes on collecting oil assets

Flowdale Investments Limited controlled by the President and the owner of Russneft Mikhail Gutseriev redeemed 14.9% of British Exillon Energy extracting oil at the deposits of Western Siberia and Timano-Pechora. Exillon Energy reports, purchase of 24.065 million of shares belonging to Swiss fund Worldview EHS International Master Fund amounted to about $68.6 million.
The source close to the transaction reported, Gutseriev will purchase more shares, though it remains unknown whether he will buy the controlling ownership of Exillon or consolidate the company.

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