Russian Oil and Gas Industry: News

Russia also surpassed itself in petrol production in 2016 to 40M tons. Issue is, prices of petrol is still going up in Russia due to taxes. Currently average is 34 rubles/L.

Then again, its over $1/L in Canada.

NOVATEK’s shipyard construction is among Arctic priority projects

The priority list contains 20 projects, which are of biggest importance for development of the Russian Arctic areas

MURMANSK, January 19. /TASS/. The project of Russia’s NOVATEK, largest independent natural gas producer, to organize a construction center for large capacity modules is put on the list of priority projects, government of the Murmansk region said after this year’s first meeting of the project office for development of the Arctic’s benchmark zone on the Kola Peninsula.

"At the meeting, the office members determined which projects are to be off the list, and which are to be put on the list," the government said. "Thus, NOVATEK’s project to make a center in the Belokamenka village was put on the list, like projects of the region’s biggest companies - Kola GMK (Kola Mining & Metallurgical Company) and Apatit (mining and processing enterprise, extracting mineral raw materials for chemicals and fertilizers)."

The priority list contains 20 projects, which are of biggest importance for development of the Russian Arctic areas.

NOVATEK’S plan is to build a specialized shipyard to produce unique sea facilities - concrete gravity platforms for LNG plants, drilling and extraction platforms for the Arctic offshore projects and other large structures. Earlier, the project received a status of a strategic investment project, thus offering the company special taxation benefits, which are estimated at more than 32 billion rubles ($532 million).

In summer 2016, Russia organized a special project office to develop the Arctic area by forming benchmark zones there. The Murmansk region is a pilot project to form the Kola benchmark area. The project office features representatives of the federal and regional authorities, companies working in the Murmansk region, as well as scientific and research institutions.


More:
http://tass.com/economy/926013

Project Canada wrote:Russia’s dependence on imported oil and gas equipment drops to 53%

http://tass.com/economy/929395

I wish they profiled the imports. It is hard to tell how serious this dependence is. Gazprom has been doing its own fracking so obviously
it has access to the fracking fluid formula and the associated pressurized pumping equipment. I can't see Russia need to import this.
At the same time the computer related aspect can be handled by Russia as well. Russia has the scientific and mathematical depth to
produce 3D tomography software and field probing equipment (e.g. blasting and sonar backscatter recorders).

Perhaps there is equipment rental involved which makes economic sense. I can see such rental companies not being established in Russia.

Russia’s offshore energy projects in the Arctic

More:
http://tass.com/economy/938067

Reserves and production

According to the Russian Energy Ministry, Russia’s recoverable oil and gas reserves in the Arctic currently stand at 260 billion tonnes of equivalent fuel, or 60% of Russia’s recoverable hydrocarbon reserves. In 2015 the science doyen of the Oil and Gas Geology and Geophysics Institute under the Siberian branch of the Russian Academy of Sciences, Aleksey Kontorovich, estimated Russia’s oil and gas reserves in the Arctic at 100 billion tonnes.

In 2016, the Arctic produced nearly 90 million tonnes of oil (17% percent of Russia’s overall production) and nearly 500 billion cubic meters of oil and gas (80%). At the moment nearly all hydrocarbon reserves are extracted on the mainland. Of the total 350 oil fields there 60 are active. Nineteen oil and gas fields have been explored in Russia’s sector of the Arctic in the Barents and Kara seas. Commercial production is underway only at one of them - Prirazlomnoye. Exploration work is in progress at more than 40 offshore fields in the Barents and Kara seas and the Eastern Arctic.Investment into offshore oil and exploration in Russia in 2016 totaled 71.4 billion.

Novak reveals huge Russia's hydrocarbon reserve

http://vestnikkavkaza.net/news/Novak-reveals-huge-Russia-s-hydrocarbon-reserve.html
Mar 27 - 12:05 pm

Russian Energy Minister Alexander Novak said that the Arctic is a future of Russia's oil and gas production.

"The Arctic shelf is a huge hydrocarbon reserve that possesses billions of tons of oil and tens of trillion cubic meters of gas," Sputnik cited the minister as saying.

Novak said that Russia intends to increase its oil extraction and exploration on the Arctic shelf if the oil prices on the international market grow.

According to him, the total value of energy resources concentrated in Russia's Arctic region exceeds $30 trillion.

Russia’s offshore energy projects in the Arctic

More:
http://tass.com/economy/938067

Reserves and production

According to the Russian Energy Ministry, Russia’s recoverable oil and gas reserves in the Arctic currently stand at 260 billion tonnes of equivalent fuel, or 60% of Russia’s recoverable hydrocarbon reserves. In 2015 the science doyen of the Oil and Gas Geology and Geophysics Institute under the Siberian branch of the Russian Academy of Sciences, Aleksey Kontorovich, estimated Russia’s oil and gas reserves in the Arctic at 100 billion tonnes.

In 2016, the Arctic produced nearly 90 million tonnes of oil (17% percent of Russia’s overall production) and nearly 500 billion cubic meters of oil and gas (80%). At the moment nearly all hydrocarbon reserves are extracted on the mainland. Of the total 350 oil fields there 60 are active. Nineteen oil and gas fields have been explored in Russia’s sector of the Arctic in the Barents and Kara seas. Commercial production is underway only at one of them - Prirazlomnoye. Exploration work is in progress at more than 40 offshore fields in the Barents and Kara seas and the Eastern Arctic.Investment into offshore oil and exploration in Russia in 2016 totaled 71.4 billion.

Novak reveals huge Russia's hydrocarbon reserve

http://vestnikkavkaza.net/news/Novak-reveals-huge-Russia-s-hydrocarbon-reserve.html
Mar 27 - 12:05 pm

Russian Energy Minister Alexander Novak said that the Arctic is a future of Russia's oil and gas production.

"The Arctic shelf is a huge hydrocarbon reserve that possesses billions of tons of oil and tens of trillion cubic meters of gas," Sputnik cited the minister as saying.

Novak said that Russia intends to increase its oil extraction and exploration on the Arctic shelf if the oil prices on the international market grow.

According to him, the total value of energy resources concentrated in Russia's Arctic region exceeds $30 trillion.

I wonder if Rosneft will now start purchasing equipment from Gazprom/Uralvagonzavod and others (even themselves) for all their extraction equipment as well further fund Russian domestic development? It would be heavily in their best interest. As well, jump right in to foreign countries for extraction opportunities, ownership of pumps and processing facilities.

Gazprom's Medvedev channels Mao in quest to sell gas to China
By Elena Mazneva on 3/3/2017

http://www.worldoil.com/news/2017/3/3/gazproms-medvedev-channels-mao-in-quest-to-sell-gas-to-china

HONG KONG (Bloomberg) – Gazprom deputy head Alexander Medvedev is taking solace in old sayings by the founding father of the People’s Republic of China as the natural gas giant pushes ahead with a plan to become its biggest supplier.

“Do you know this Chinese saying “Hard work for three years, happiness for 10,000?” Medvedev said in an interview, referring to a loosely translated version of a Mao Zedong slogan. “We are in constant contact with our Chinese colleagues at all levels, corporate and governmental.”

The Moscow-based gas exporter sees a chance this year for a new supply deal, which would be the first since a debut contract in 2014 before gas talks between the nations stalled. Gazprom’s plan to deliver 100 billion cu m of Russian fuel per year “still remains our target,” Medvedev said in the interview in Hong Kong on Thursday, where Gazprom was holding its annual Investor Day.

Producers from Russia to Australia have been betting on huge sales to the world’s biggest energy user as it seeks to shift from coal to the cleaner burning fuel in order to tackle pollution. Talks on new deals have slowed as China is reshaping its gas market, aiming to reduce dependence on imports. The government also introduced a lower range for the share of its energy it expects to be met by gas earlier this year.

Russia signed its first contract to ship gas to China from the untapped East Siberian fields under a $400 billion deal in 2014 as relations with the U.S. and the European Union soured over the conflict in Ukraine. Gazprom had planned to follow the deal with another 30-year agreement for fuel from West Siberia in 2015 before finally settling on a memorandum of understanding for a third pipeline from Russia’s Sakhalin region off the Pacific coast.

Difficult Challenge

The three pipeline routes plus supplies of liquefied natural gas will be enough to meet the 100-billion-cu-m target, Medvedev said, without specifying the timing. The first pipeline is scheduled to open in 2019 at the earliest.

“Gazprom needs to be more realistic on gas pricing negotiations ahead” to win more supplies to China, said Gordon Kwan, head of Asia oil and gas research at Nomura Holdings Inc. in Hong Kong. While the country is putting more emphasis on cleaner fuels, “the challenge is difficult because coal is still very cheap.”

The government of President Xi Jinping cut wholesale gas prices twice in 2015 in an attempt to switch users from coal. No further cuts from the state have followed since then, and Gazprom doesn’t see them this year either as domestic prices are already “very low” for gas sellers, Medvedev said.

China expects its domestic gas output to rise about 60% to 220 billion cu m by 2020 from last year. In December, the government proposed a consumption target of 350 billion to 380 billion cu m by the same year.

China’s gas use can reach 400 billion cu m by 2025 if its plans on replacing coal with cleaner fuel are fulfilled, Medvedev said. The figure will be at least 300 billion cu m even under the most conservative scenario. “We won’t see less than that for sure,” he said.

Russian gas price will be more competitive than LNG from Australia for China because of lower production costs, Medvedev said, declining to comment on terms the company has in its debut agreement with China.

Russia’s plans for China

Power of Siberia pipeline from East Siberia will have capacity of 38 billion cu m a year with a possible expansion further West Siberian route capacity seen at 30 billion cu m Pipeline supplies from Russia’s Far East seen at 8 billion cu m, Medvedev said

100 bcm of Gas Supplies for China is a good target to achieve , if they manage to do that then gas supplies to China will exceed Gazprom supplies to Europe

Austin wrote:Russia’s offshore energy projects in the Arctic

More:
http://tass.com/economy/938067

Reserves and production

According to the Russian Energy Ministry, Russia’s recoverable oil and gas reserves in the Arctic currently stand at 260 billion tonnes of equivalent fuel, or 60% of Russia’s recoverable hydrocarbon reserves. In 2015 the science doyen of the Oil and Gas Geology and Geophysics Institute under the Siberian branch of the Russian Academy of Sciences, Aleksey Kontorovich, estimated Russia’s oil and gas reserves in the Arctic at 100 billion tonnes.

In 2016, the Arctic produced nearly 90 million tonnes of oil (17% percent of Russia’s overall production) and nearly 500 billion cubic meters of oil and gas (80%). At the moment nearly all hydrocarbon reserves are extracted on the mainland. Of the total 350 oil fields there 60 are active. Nineteen oil and gas fields have been explored in Russia’s sector of the Arctic in the Barents and Kara seas. Commercial production is underway only at one of them - Prirazlomnoye. Exploration work is in progress at more than 40 offshore fields in the Barents and Kara seas and the Eastern Arctic.Investment into offshore oil and exploration in Russia in 2016 totaled 71.4 billion.

Novak reveals huge Russia's hydrocarbon reserve

http://vestnikkavkaza.net/news/Novak-reveals-huge-Russia-s-hydrocarbon-reserve.html
Mar 27 - 12:05 pm

Russian Energy Minister Alexander Novak said that the Arctic is a future of Russia's oil and gas production.

"The Arctic shelf is a huge hydrocarbon reserve that possesses billions of tons of oil and tens of trillion cubic meters of gas," Sputnik cited the minister as saying.

Novak said that Russia intends to increase its oil extraction and exploration on the Arctic shelf if the oil prices on the international market grow.

According to him, the total value of energy resources concentrated in Russia's Arctic region exceeds $30 trillion.

Hopefully Russia secures as much as they can, Russia needs to step up, even more.

Isnt $30 trillion worth of Russian Energy resources at Arctic is huge amount of Energy and Money for Russia ?

Austin wrote:Isnt $30 trillion worth of Russian Energy resources at Arctic is huge amount of Energy and Money for Russia ?

No sh*t. That is why NATO wants it and is prepared to go to war to get it.

kvs wrote:

Austin wrote:Isnt $30 trillion worth of Russian Energy resources at Arctic is huge amount of Energy and Money for Russia ?

No sh*t.   That is why NATO wants it and is prepared to go to war to get it.

Madeline Halfbright one famously said quoting Arctic that the resources is so vast that it should belong to the entire world not just Russia !

One way is to make India and China partners in Arctic exploration make sure Western Companies dont get any stake there , The energy needs of China India and Asia is bound to grow in the next 30-35 years as per EIA.

Gazprom signs five-year contract on Uzbekistan's gas purchase

More:
http://tass.com/economy/939626

Rosneft to receive first 600,000 barrels of Kurdistan’s oil

MOSCOW, April 6. /TASS/. Russia’s oil major Rosneft will receive the first crude oil shipment from Iraqi Kurdistan amounting to 600,000 barrels this week, the company’s representative told TASS Thursday.

"This week Rosneft will receive the first oil shipment from the Kurdistan Regional Government. The cargo amounting to 600,000 barrels will be shipped in the port of Trieste and delivered to Rosneft’s refinery assets in Germany through TAL [Transalpine Pipeline - TASS]," he said, adding that later Kurdistan’s oil will be refined in India.

"As Rosneft is expanding its refinery network, the company plans to provide most efficient supplies to refineries," the source said. "We assume that Kudristan’s oil allows us to diversify sources of oil," he said, adding that the diversification of supplies helps hedge risks of overusing one source of oil. The structure of agreements with Kurdistan helps to mitigate Rosneft’s risks in force majeure circumstances, the company’s representative added.

As reported earlier Rosneft and the Kurdistan Regional Government of Iraq signed an agreement on the sidelines of the IP week conference in London, which stipulates oil purchases by Russia’s top oil producer in the period between 2017 and 2019. The purchaser of crude will be Rosneft’s trading arm - Rosneft Trading SA.

The contract was signed as part of the cooperation agreement between Rosneft and the Kurdistan Regional Government of Iraq in the fields of upstream, infrastructure, logistics and trading.

According to Rosneft Chief executive officer Igor Sechin, the off-take and supply of Kurdish crude oil into Rosneft's expanding worldwide refining system will further contribute to the increase in its efficiency.


More:
http://tass.com/economy/939795

Russia imports oil and gas equipments .

Another Big Win for Russian Pipeline Politics in Europe: The controversial Nord Stream 2 pipeline reaches a new milestone


A divisive Russian energy project dripping with geopolitical tension reached a major milestone this week. The Nord Stream 2 pipeline, which would pump natural gas from Russia into northern Europe, lined up financial backing from the western energy industry on Monday despite a barrage of protest from many European Union members fearful of Moscow’s hold on Europe’s energy supplies.

Five European energy companies agreed to foot half the bill for the controversial $10.3 billion project: Austria’s OMV, France’s Engie, the Dutch-British group Royal Dutch Shell, and Germany’s Uniper and Wintershall. Russia’s state-owned gas giant Gazprom would pay for the remaining half, but retain control of the project.

Coming after a spate of failed Russian pipeline initiatives, landing the financing represents a big step forward for Gazprom. It would allow Russia to continue shipping natural gas to the heart of Europe without having to pump it through Ukraine — enabling Russia to avoid a transit state that has given it headaches in the past, and with whom it is currently embroiled in a simmering conflict.

“It’s a breakthrough,” Gazprom chief executive Alexei Miller told Reuters. “It’s a firm confirmation of foreign participation in the project, it’s an important financial basis for the project to be completed by the end of 2019.”

With a capacity of 55 billion cubic meters of gas a year, the Nord Stream 2 pipeline would double the capacity of Russia’s gas connection to European energy markets through northern Germany. Gazprom is slated to begin construction in 2018 and complete the pipeline — running from Russia’s massive Bovanenkovo gas field near the Baltic coast to Greifswald, Germany — in 2019. Three Russian companies and one German company will supply the pipelines for the project.

But Nord Stream faces strong legal and political headwinds at every turn, including suits Poland brought at the European Court of Justice. Poland and the Baltic states became outspoken opponents of the deal, saying it would allow Russia to tighten its energy noose around Europe and cut the gas flow from its pipelines that run through Ukraine. (Russian gas and oil still flows through Ukraine to Europe despite the two countries’ hostilities; both need the revenue).  

The five European energy firms first signed an agreement with Gazprom to financially back the project in September, 2015, but Poland blocked the bid.

Gazprom’s pipeline that’s already online, Nord Stream 1, is currently only being used at half capacity, making some experts question the economic rationale — especially at a time of flat European demand for natural gas.

“Nord Stream 2 is a diversionary pipeline, it’s being built to get rid of Ukraine,” said Sijbren de Jong, an energy expert with the Hague Institute for Strategic Studies.

Yet other experts argue it’s a sound commercial decision, since it will ensure a steady flow of supplies with little transit risk to central Europe, and say that Nord Stream 1’s construction in 2012 didn’t turn out to be the geopolitical disaster some expected. Europe’s domestic gas production is expected to halve in the next two decades, and Gazprom needs to shore up its position in a market that still accounts for a massive chunk of its revenue.

But Gazprom developed a nasty habit of using energy as a political cudgel. It charged different countries different prices for gas, and on scores of occasions since the fall of the Soviet Union cut off or threatened to cut off energy supplies to coerce neighbors.

It cut off gas to Ukraine in 2006, the winter of 2008 to 2009, and most recently in 2015 as the Ukraine conflict flared up after Moscow’s illegal annexation of the Crimean peninsula.

Gazprom may have won the latest battle with the help of the five European energy firms, but the war’s not over. Despite western dollars to back the project, Gazprom remains the sole shareholder of the pipeline, which means big legal concerns still abound, said de Jong. And Denmark, Sweden, and Finland, EU members whose water the pipeline would traverse, still have to greenlight the project’s construction, posing another potential hurdle.

Earlier this year, the EU Commission determined EU energy laws didn’t apply to the offshore portion of Nord Stream 2. Brussels is hoping to hash out an agreement with Moscow on the project to mollify nervous EU members and defang any of Gazprom’s more nefarious geopolitical ambitions.

But Poland and friends can carry on the fight. “The jury is still out on this one and member states can always end up suing the [EU] Commission if they don’t like the outcome,” de Jong said.

No. Russia imports petrol. Which is stupid since they don't seem to produce enough of their own. So they import large amounts of it too. Maybe why they are constantly increasing the amount of new facilities.

http://www.customstoday.com.pk/russia-could-double-gasoline-exports-after-capacity-boost/

Looks like somebody needs to update their information. Also, importing gasoline is dictated by economics such
as regional transport costs. It is cheaper for Russia to export gasoline from the remote east to local markets
instead of shipping it to the populated western part and instead of shipping to the western part imports from
the EU are used. So imports can actually boost company revenues and do not reflect some sort of Russian inadequacy.

Canada is a next exporter of oil, but the eastern part imports oil. Canada must be a failure.

It is getting tiresome when all discussion about Russia is hyperbolic hysteria. No context is ever supplied
in discussions, just polemics.

kvs wrote:http://www.customstoday.com.pk/russia-could-double-gasoline-exports-after-capacity-boost/

Looks like somebody needs to update their information.   Also, importing gasoline is dictated by economics such
as regional transport costs.   It is cheaper for Russia to export gasoline from the remote east to local markets
instead of shipping it to the populated western part and instead of shipping to the western part imports from
the EU are used.   So imports can actually boost company revenues and do not reflect some sort of Russian inadequacy.

Canada is a next exporter of oil, but the eastern part imports oil.   Canada must be a failure.

It is getting tiresome when all discussion about Russia is hyperbolic hysteria.   No context is ever supplied
in discussions, just polemics.

They still import in the millions for petrol.  I rather they do not import at all.  Just gives money to potential enemies. I am all for self sufficiency and not importing any at all. Something that we in Canada need to start doing too.

The Russian oil and gas industry, how will it take place in the next year in Russia? Is it a good income for the Russian industry?

https://sdelanounas.ru/blogs/93056/

Overview of new energy companies in Russia today (part 1)

TurkStream map:




Off topic:

How the hell can solar power plant operate with panels covered in snow? Also, Russia has surprisingly large number of solar power plants. You learn something new every day...



https://sdelanounas.ru/blogs/?search=%D1%81%D0%BE%D0%BB%D0%BD%D0%B5%D1%87%D0%BD%D0%B0%D1%8F%20%D1%8D%D0%BB%D0%B5%D0%BA%D1%82%D1%80%D0%BE%D1%81%D1%82%D0%B0%D0%BD%D1%86%D0%B8%D1%8F

Geology of the Future

More:
http://tass.com/sp/948159