Copper, Russia Oil and Gas
The share of the undistributed subsoil fund in Russia for different types of minerals is at least 3%, said today the Minister of Natural Resources Sergei Donskoy at the meeting with President Vladi
The stake of UGMK in the new company will be 75%, Rosneft – 25%.
The Head of Department for Subsoil Use in Bashkiria Raphael Gufranov has stated that oil reserves in Bashkiria will be enough for 26 years of the production, and copper, zinc, gold ore - for 20 yea
Oil extraction in Russia rose by 5.3% to 43.064 mln tons in February 2016 against Feb 2015, the Central Dispatch Management of the Fuel and Energy sector reports.
Bashneft stayed the leader on the growth of oil extraction in February. The extraction made up 1.643 mln tons, by 11.4% more than in Feb 2015.
The extraction growth in February was also shown by Gazprom Neft – by 7.8% to 4.43 mln tons, Surgutneftegas – by 3% to 4.867 mln tons, Tatneft – by 8.4% to 2.213 mln tons.
Rosneft and Lukoil managed to increase the extraction (Rosneft by 2.9% to 15.828 mln tons, Lukoil- 0.1% to 6.673 mln tons), in January they reduced the extraction results.
The Government has allowed Russian investors to conduct geological exploration and production at areas of federal importance till the completion of prospecting. Previously, companies had to wait for five years until prospecting licenses would expire, and ask for permission to develop from the Government. Market participants support the changes, hoping to benefit from projects earlier. The access to strategic areas for foreign investors is limited for a while, but the Ministry of Natural Resources plans to simplify it too.
On October 28, the Prime Minister Dmitry Medvedev signed a decree (published on Tuesday), according to which Russian companies are entitled to conduct geological exploration and production at areas of federal subsoil before the completion of geological study. According to the explanatory note, the decision removes the contradictions between regulations, which defined this order in different ways: the regulation, approved by the Government in September 2008 and Article 6 of the Federal Law "On Subsoil". The decree also introduces a mechanism for attributing subsoil users to Russian or foreign ones through submission of documents to Rosnedra and the FAS. Now companies, controlled by foreigners, can obtain access to strategic fields with the permission of the Government.
The RF Ministry of Economic Development includes "Makfa", "Mechel" and ChTPZ into the list of the backbone organizations in Russia.Edited by Rhod Mackenzie / 2015-02-09 12:50:09
The RF Ministry of Economic Development included "Makfa", "Mechel" and ChTPZ into the list of the backbone organizations in Russia. The list was approved by the anti-crisis commission. There are almost 200 companies together with the Chelyabinsk ones. They all are eligible for state guarantees in the amount of not more than 5 billion roubles as a priority. They will be set for investment projects and restructuring of the current debts.
Copper cathodes production in Russia is actually distributed between Norilsk Nickel, UGMK and Russian Copper Company. Last year it was slightly less than 1 million tons, Y. Raikov, the CEO of Tsvetmetobrabotka says. Production of copper rolled wire, cables and conductors was 744,000 tons in 2013, and exports were 405,000 tons. Production of rolled copper and its alloys was 70,000 tons.
More than 40 large hydrocarbon deposits in the Arctic are in the Russian sector. And next year, after submission of an application to the United Nations, Russia plans to expand its domain due to the Lomonosov and Mendeleev Ridges.
At the end of last year, Russia received the first batch of Arctic oil. The development of the Arctic shelf began from the development of Prirazlom field. In general, about 60 large deposits of hydrocarbons are in the Arctic, more than 40 of them are located in the Russian sector. Today Russia is now planning to expand its domain due to the Lomonosov and Mendeleev Ridges at the bottom of the Arctic Ocean. The corresponding application is expected to be submitted to the United Nations next year.
The government may ease operation conditions of foreign state-owned companies in Russia. Until now, they could get in projects of strategic deposits development in the country not more than 25%. Primarily, this liberalization aims to attract investors from China, India and the Middle East. Primarily state-owned companies conduct international expansion just in these countries, and Russia will reorient to partnership with them in condition of conflict with the West over the Ukraine.
The Government has instructed the Ministry of Natural Resources, Ministry of Economy and FAS to consider whether to give foreign investors the opportunity to increase their share in companies, which develop subsoil plots of federal importance (large deposits of oil, gas, gold, nickel, platinum and copper) in excess of the limit, set by the legislation. This topic was raised by CEO of Metalloinvest Andrei Varichev at the Cabinet’s meeting on July 10; he offered to amend the law "in terms of increasing the possibility of the presence of foreign investors – certainly, through consideration by the Government Commission - from 25% to 49%". According to him, such measures are necessary for the development of large deposits, in particular to attract project financing.
Now, according to the federal law 57, there is a special procedure of foreign investments in companies that hold licenses for subsoil plots of federal importance. These companies are considered to be controlled by a foreign investor if it has a share of 25% or more.
The Russian Government can abandon copper and nickel export duties in 2014, and to establish some other measures for supporting of the metallurgy companies, Vedomosti writes referring to the project of the protocol of the session with participation of the Premier D. Medvedev on November 25.
Under the document, Mr. Medvedev will order to the Ministries of Economy Development, of Finances and of Industry and Trade to elaborate before December 23 the measures for supporting of the metallurgy companies while the era of worsening of the state of affairs.