Russia Oil and Gas

Russia tries to avoid Ukrainian gas storages

Gazprom is going to enlarge the capacity of Katarina underground gas storage by 50%. In Q4 2014, the Russian corporation is going to launch the third salt reservoir that will enlarge the capacity of the storage to 170 million cubic m.
Gazprom performs construction of the underground gas storage in Peissen together with the German Verbundnetz Gas AG. Now the capacity of Katarina is 113 million cubic m. They plan to have 6 reservoirs by 2017. Thus, the capacity of underground gas storage will exceed 600 million cubic m.
The Russian gas monopoly claims that the aim of construction is provision of reliable gas supplies to Western Europe including via Nord Stream.
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Surgurneftegaz and Lukoil asked for the tax breaks for difficult oil extraction.

Disputes about the difficult oil development in Russia came to the government level. February 6 the Ministry of Natural Resources held a meeting on this topic. It was attended by representatives of the private oil companies: "Surgutneftegaz", "Lukoil", "Neft" and the Ministry, SIA Press reports.
The benefits were the main topic to improve the profitability of work, including the Bazhenov formation. "Surgutneftegaz", for example, suggested a zero rate of mineral extraction tax on oil extracted from the Bazhenov Formation, regardless of the degree of depletion of the deposit.

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Daily production of oil and gas condensate made up 1 million 442.2 thousand tons on February 6, 2014

Oil and gas condensate production a day made up 1 million 442.2 thousand tons on February6, 2014. The state enterprise the “Central Dispatch Department of the Fuel-and-Energy Sector” states.
Oil and gas condensate production in Russia by eight leading companies of the sector made up, thousand tons:

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How Much Would It Hurt? Exploring Russia’s Vulnerability to a Drop in Energy Prices

Russia’s economy is obviously energy-reliant, but how vulnerable does that make it in practical terms? What would happen if global energy prices dropped significantly? In the shadow of the shale gas and oil revolution, this memo examines how a drop in energy revenues would affect Russia in three important areas: fiscal, financial, and political.
In each area, some of the effects of falling oil prices would be more or less automatic. For example, a decline in revenues would mean a rising budget deficit (keeping all other things equal). Such an effect is easy to predict: the deficit would simply be larger if the revenue loss were greater. Other implications, however, are more contingent, as they rely on choices made by individuals and groups. For instance, while observers sometimes imply or state outright that a government will be “forced” to respond to a crisis in a certain way, leaders always have some freedom to remain stubborn in the face of adversity. Likewise, there are multiple ways in which political alliances may react to stress. Those reactions are more difficult to foresee, but institutional arrangements and past patterns of behavior can guide observers’ efforts.
The Nature and Performance of the Russian Economy

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On February 13 of 2014, Rosneft to hold collection of orders for bond obligations for 35 billion rubles

On February 13 of 2014 from 10.00 to 16.00 Moscow time, Rosneft will hold collection of orders for 10-year stock obligations of BO-01 and BO-07 series to the amount of 35 billion rubles.

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Bashneft opens the largest retail gasoline station in Russia

“Bashneft” has put in operation the largest fuel filling station in Russia on the highway Ufa-Airport after the reconstruction. They said about it in the press-service of the company.
Bashneft’s president, A.Korsik, the first vice-president for processing and commerce M.Adriasov, vice-president for regional sales ,D.Panyukov, first deputy Prime Minister of Bashkortostan R.Mardanov, Minister of Industry and Innovative policy of the republic, A.Karpukhin, the head of the local administration I.Yalalov and the head of the administration of the Ufa district, M.Davydov took part in the ceremony of opening the filling station.

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In January of 2014, Tatneft produced over 2 billion tons of oil

In January of 2014, Tatneft produced over 2 221.896 thousand tons of oil or 100.6% to January of 2013 (+12 952 tons), the company’s press centre reports.
All oil-and-gas production departments fulfilled the plan 100%. 2 196 785 tons of oil were shipped and 19 955 tons in excess of the plan.

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Rosneft may come to agreement with Chinese partners on joint venture for oil production in Russia by May

Rosneft may come to an agreement with its Chinese partners on the creation of a joint venture for oil production in Russia, including on the shelf, by May, the company’s head, Igor Sechin reported.
“Currently we discuss with China (CNPC) a proposal on their participation in production in our territory, as on land, as on shelf in Sakhalin, on Arctic shelf. We have agreed to create working teams on all directions,” – Sechin said to journalists.
“By May of the current year, I expect that opportunities to discuss new projects and to sign new agreements within preparation for visit of the Russian President to China will appear,” – he added.
In October of the last year, Rosneft and CNPC signed a memorandum on the creation of a joint venture for work in Eastern Siberia. The Russian company will own 51% in the joint venture.

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Russian upstream oilmen are asked to set the export duty on oil to 20% of the oil duties.

The Heads of LUKOIL, "Gazpromneft" and "Tatneft" have sent a letter to the Prime Minister ,Dmitry Medvedev asking to set export duties on oil at 20 % of the crude oil export duty, a copy of the letter is at the disposal of the "Prime" agency.
The main volume of commercial oils and lubricants, consumed in Russia, is produced from the base oils of first to third groups, which have high added value and traded at a premium to oil products. Russia has the capacities to produce base oils of mainly the first group, and the need for second and third groups of oils is provided by imports. The equalization of export duties on oil products at 66% and planned increase in January 2015 of the duties on dark petroleum products up to 100% of the oil duty prevents the production development, RIA Novosti informs.

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In 2014, Gazprom’s investments into South Corridor to increase 1.5 times

In 2014, Gazprom’s investments into the South Corridor, which will provide supplies to consumers in the south of Russia and to the South Stream gas pipeline, will increase 1.5 times as compared with the previous year to 168.071 billion rubles, the gas holding company reports.
On the whole, 698.212 billion rubles are planned to be invested into capital construction (775.214 billion rubles in 2013), including 404.116 billion rubles into gas transportation facilities (385.487 billion rubles), 354.374 billion rubles of which will be invested into new facilities (340.044 billion rubles).
In the current year, 154.08 billion rubles are planned to be used for the system of main gas pipelines Bovanenkovo-Ukhta (144.411 billion rubles in 2013), 168.071 billion rubles – for the extension of the unified system of gas supply to provide the supplies to the South Stream gas pipeline (108.568 billion rubles). Last year, Gazprom increased the total cost of the South Corridor project to 738.542 billion rubles from 509.585 billion rubles.
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