Russian Oil and Gas Industry: News

sepheronx wrote:Good.

Russia really needs to get their other brand of goods (besides resources) on the market. Real potential is its energy industrial goods (Rosatom and Power Machines), high tech, CNC and automotove. Hopefully it is those goods that will have big returns for Russia in long run after decades as that equipment will need to be replaced and people already trained on Russian gear will be inclined to buy Russian goods again (As example is defence industry with accordance to many former USSR allies).

As well, maybe this will reduce cost of fuel in Russia for average driver.

Viktor wrote:Nice. Russia would buy 500 000 barels of oil per day from Iran which would would increase Iranian oil output by 50% and in exchange Russia would provide

unspecified goods. Sounds like a perfect deal!

Exclusive: Iran, Russia negotiating big oil-for-goods deal

etaepsilonk wrote:On a somewhat related note, there is a port being built in northern Iran, isn't it? If so, that would greatly serve Iran to work around those sanctions.

MOSCOW, January 16 (RIA Novosti) – Russia is set to continue talks with Iran on a possible oil-for-goods swap that would make Moscow a major importer of Iranian oil despite concerns by the United States, the Kommersant business daily said Thursday, citing a Russian diplomatic source.

Energy Minister Alexander Novak told Reuters last month that breaks should help Russia keep production at a minimum of 10.1-10.2 million bpd in coming years and could lead to an increase to 10.8-11.0 million bpd before 2030.


In its annual outlook, oil company BP said Russia and South America would join the United States in tapping shale oil over the next two decades, contributing about 1 million bpd of shale oil each by 2035.

Austin wrote:This is Interesting on Russian plans to maintain the current level of oil output

http://www.reuters.com/article/2014/01/21/russia-oil-forecast-idUSL5N0KV0N920140121

Energy Minister Alexander Novak told Reuters last month that breaks should help Russia keep production at a minimum of 10.1-10.2 million bpd in coming years and could lead to an increase to 10.8-11.0 million bpd before 2030.


In its annual outlook, oil company BP said Russia and South America would join the United States in tapping shale oil over the next two decades, contributing about 1 million bpd of shale oil each by 2035.

The Russian energy ministry released a draft energy strategy to 2035 on Friday, which forecasts that 23% of all energy exports will be sent to the Asia-Pacific region by 2035.

"The primary task is to speed up entry into Asia-Pacific markets," the ministry said in a statement outlining the key points.Russia aims to send 32% of crude, and 31% of gas produced to the region by 2035.

Officials have long indicated that Russia is aiming to further diversify its export portfolio and ship greater volumes eastward.

"Energy markets in Europe and the CIS will remain key markets for Russian energy production, but export volumes after 2015 will fall, and by the end of the period will be 95% of 2010 levels," the statement said.

Russia currently ships around 6% of the gas it produces to the Asia-Pacific region, in the form of LNG from its Sakhalin 2 LNG plant, which has a capacity of 10 million mt/year.

Gas giant Gazprom is aiming to finalize a major deal for shipments via the Eastern route to China this year, which envisages supplies of 38 billion cubic meters a year to China from 2018. Gazprom has not ruled out increasing supplies to China to as much as 60 Bcm.

Russia's largest crude producer, Rosneft, is also increasing volumes of crude shipped to China, adding an additional 800,000 mt in 2013.

The company was supplying China's CNPC with 300,000 b/d of crude via the East Siberia-Pacific Ocean pipeline under a contract signed in 2009, but last year agreed to increase volumes gradually to around 620,000 b/d by 2018.

Rosneft has also agreed to supply around 200,000 b/d over 10 years to Sinopec, with deliveries to start this year.

The draft strategy envisages increasing the proportion of oil products and petrochemicals to no less than 40% of exports by 2035.

Russia also plans to cut fuel oil exports from 57 million mt in 2010, to 20 million mt in 2035, while raising vehicle fuel exports to 58 million mt from 44 million mt.

Capital expenditure in the energy sector is also set to increase gradually to $793 billion between 2031 and 2035 from $460 billion between 2011 and 2015, according to the draft.

Ministry monitors indicate that development is by and large in line with the current strategy.

"Production, domestic consumption and export of energy resources is, on the whole, within or close to the forecasts in the Energy Strategy 2030," the statement said.

The draft forecasts growth in world energy consumption of 1.2% by 2035, compared with the previous estimate of 1.5% by 2030.

KRASNOYARSK, February 28 (RIA Novosti) – Russian state energy giant Rosneft said Friday that it will invest around $83 billion on developing a strategic oil and gas field in Eastern Siberia over the next decade.
Vankor field in Siberia’s Krasnoyarsk region contains an oil and gas cluster capable of producing 55 million tons of oil annually by 2025, Rosneft vice president Svyatoslav Slavinsky said.
Slavinsky said developing the cluster would create 15,000 jobs for high-skilled laborers.
Rosneft has steadily expanded drilling operations in Eastern Siberia over the last decade, acquiring a license to build up Vankor in 2003. The company paid more than $410 million for exploration and development rights for four more nearby oil and gas fields in 2005 and 2006.
Vankor, which is the largest field to be discovered and put into production in Russia in the last quarter of a century, is estimated by independent auditors to hold the equivalent of more than 1.6 billion barrels of oil in confirmed hydrocarbon reserves.
The field, which started commercial output in July 2009, is viewed as central to Russian plans to meet sales targets to energy-hungry China.

http://en.ria.ru/russia/20140228/187964590/Rosneft-to-Spend-83Bln-Developing-Siberian-Oil-Field.html

MOSCOW, March 04. /ITAR-TASS/. In May 2014, Gazprom “will sign a contract with China for the supply of 38 billion cubic meters of gas, with the term of the contract making up 30 years,” Gazprom CEO Alexei Miller said on Tuesday.

“Gazprom is ready to reorient Western Siberian gas deliveries to Asia instead of Europe, and their amounts will be comparable with the amount of gas deliveries to Europe,” Miller said.

MOSCOW, March 04. /ITAR-TASS/. Russian Gazprom CEO Alexei Miller said on Tuesday that gas deliveries to Europe via the South Stream gas pipeline would begin at the end of December 2015.

“Everything proceeds as scheduled, the construction of onshore sections of the gas pipeline was launched on the territories of Bulgaria and Serbia,” Miller said at a meeting with Prime Minister Dmitry Medvedev.

He also said the amount of gas produced by Gazprom last year made up 487.5 billion cubic meters, with exports to Europe to the amount of 162 billion cubic meters. The main route of gas deliveries was through Ukraine, and more than 86 billion cubic meters of gas were delivered to Europe in transit via Ukraine.

He added that in May, Gazprom “will sign a contract with China for the supply of 38 billion cubic meters of gas, with the term of the contract making up 30 years”.

“We expect that the contract may be signed in May of this year,” Miller said.

“An agreement was reached with Chinese partners that as soon as a contract for gas deliveries from Eastern Siberia to the People’s Republic of China is signed, we will immediately launch negotiations on gas supplies on the western route, where the resource base is Western Siberia, which has been traditionally a resource base for gas deliveries to Europe,” Miller said.


“In the medium term we can bring gas deliveries in the Asian direction to the amount that will be comparable with gas deliveries to Europe,” he added.

TOKYO, March 19. /ITAR-TASS/. One tenth of Rosneft’s offshore resources is estimated at $2.5 trillion, company's president, Igor Sechin said in a report.

According to the presentation, Rosneft’s offshore prospective resources reach 24.2 billion tonnes of oil and 23.8 trillion cubic meters of gas.

“Mining of a tenth of these resources means yielding about $2.5 trillion, if estimated under the current prices. This will require no less than $400 billion of investments,” Sechin told the sixth Russian-Japanese Investment Forum that opened in Tokyo on Wednesday. This, he added, would surely necessitate “joint efforts and qualified partners”.

The potential of further expansion of Russian-Japanese energy cooperation was huge and reached dozens and hundreds of billions of dollars in Rosneft’s case alone, Sechin told the forum’s opening; Japan can count on a considerable increase of hydrocarbon and electricity supplies.

“In order to provide energy security of Japan and the entire Asia-Pacific region in the future Rosneft is ready to offer a wide range of opportunities to satisfy oil and gas needs,” he added.

Russia was interested not only in cooperation with certain partners but also joint work along the entire production line — production, infrastructure, processing, and transportation of resources.

“Asset swap as well as a clearer contract system is crucially important to achieve a long-term economic effect. This will help avoid any political and contract risks,” Sechin said.

Rosneft’s president highly evaluated the work of the Japanese partners.

“Some of them are working in Iraq with a 7% breakeven level. The inflation level as it is, they are making truly heroic efforts,” said Sechin. Russia’s breakeven level “considerably exceeds these figures”, Sechin said and invited Japanese partners to partake in petrochemical and ship-building projects in Russia’s Far East.

The forum in Tokyo has gathered more than 700 government officials and businessmen from Russia and Japan. Improving Russia's investment climate and investment cooperation between the two countries are on the agenda.

Austin wrote:Why mining 1/10 of the resources what happens to the rest of it ?

Austin wrote:Thanks for your reply.

My concern was can they only mine 1/10 of the reserves due to technical feasibility of doing so ? I mean the difference between available resource and explorable reserves

China hopes that China National Petroleum Corporation (CNPC) and Russia's gas giant Gazprom (MOEX: GAZP) will sign a contract for laying a gas pipeline from Russia to China and for Russian gas deliveries during Russian President Vladimir Putin's visit, set for May, the Chinese embassy's plenipotentiary minister and counselor for economic affairs, Zhang Di, told Interfax.



"The current talks suggest that the companies' positions are drawing nearer, progress is apparent, so the signing of a contract during the Russian president's visit to China is quite likely," he said. But he noted that, "as in the past, the price remains unsettled, which may become the main hurdle," he said.

Gazprom and CNPC kept saying all through last year that they would finalize the contract before the end of 2013, but they failed to come to terms on a price. Talks between Gazprom CEO Alexei Miller and CNPC Chairman Zhou Jiping in Beijing at the start of the year produced a tentative agreement to conclude a contact in May 2014.

Gazprom's press service reported that, "the two companies are interested in a successful outcome of the talks and plan to sign a contract as soon as possible. It was said that the talks are proceeding according to schedule and that the contract would take effect before the end of 2014, as agreed. A proposal was made for preparing the contract for signing during the Russian president's visit to China, scheduled for May 2014."

Gazprom's deputy chief executive officer, Alexander Medvedev, said in turn that in the case of Russian gas deliveries to China "revenue cannot be lower than that of gas exports to Europe." He also said that Asia is a premium market and that Gazprom's competitive advantage in its proximity to it.

Austin wrote:In current situation South Stream seems dead

South Stream victim of Crimea annexation