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Eurasian Business Briefingoil & gas

Gazprom to receive European funding for second Nord Stream gas pipeline

Nord Stream2 pipesGazprom’s plans to lay a second gas pipeline along the bed of the Baltic Sea came one step closer to fruition yesterday when five European companies agreed to finance 50% of the Nord Stream 2 project to the tune of € 4.75 bn. Under the terms of the agreement, (more…)

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Exxon’s Black Sea hopes dashed

Steven Mnuchin US TreasurySecretaryThe Trump administration has rejected Exxon Mobil’s application for a waiver from sanctions imposed on Russia after the annexation of Crimea and subsequent events in eastern Ukraine, dashing the oil company’s hopes that it could resume drilling in the Black Sea in partnership with Rosneft. (more…)

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Exxon in bid to resume Russian JV

Exxon Mobil has applied to the Treasury Department for a waiver from US sanctions on Russia in a bid to resume its Black Sea joint venture with state oil giant Rosneft, according to reports in the Wall Street Journal; but (more…)

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Gazprom’s Asian charm offensive struggles to excite investors

Singapore Stock ExchangeAs their board considers the possibility of a share placement on one of Asia’s major stock exchanges – most likely Hong Kong – executives from Russian energy giant Gazprom flew into Singapore and Hong Kong this week for the first time since 2015 in a bid to drum up interest; but even after last year’s commodities rally and a revival in Russian stocks, Asian money managers have yet to be persuaded that Gazprom is worth adding to their portfolio.
Deputy Chief Executive Officer Andrey KruglovNews that Gazprom (more…)

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Saudi Aramco to woo Chinese with IPO

Saudi Aramco compound DahranSaudi Aramco has asked JPMorgan Chase & Co and Morgan Stanley to help with what, at $100bn, is expected to be the world’s biggest IPO, according to the Wall Street Journal, while HSBC has emerged as the leading contender for a role among a list of five banks that could provide a pipeline to Chinese investors. (more…)
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Turkish Stream #2 gets sign-off

Gazprom and Switzerland’s Allseas are reported to have signed an agreement for the construction of a second, 900km Turkish Stream pipeline running from its Siberian gas fields along the the bed of the Black Sea to Turkey.
The two companies (more…)

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Putin signs up to Turkish Stream

Putin ratifies Turkish Stream 080217The new axis that has been developing between Istanbul and Moscow in recent months appeared to strengthen even further yesterday when President Vladimir Putin signed a bill ratifying the construction of the Turkish Stream pipeline that will eventually carry natural gas from Russia under the Black Sea to Thrace on Turkey’s border with Greece.
Turkish Stream (more…)

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Now QIA eyes up Novatek JV

Putin greets Al-Thani watched by Messina (Intesa) and Glasenberg (Glencore) 250117Following its acquisition of a 19.5% stake in Rosneft via its shareholding in the Anglo–Swiss multinational commodity trading and mining company Glencore last month, the Qatar Investment Authority (QIA) is thought to be on the verge investing a further $2bn in the Russian energy sector. After Russian President VladimirPutin and Rosneft CEO Igor Sechin met with QIA chief Abdullah Bin Mohammed Bin Saud Al Thani in Moscow yesterday, speculation was rife that the Qatari sovereign wealth fund could be about to buy Fund Energy’s 49% share in the Yargeo joint venture that it set up with Novatek to develop the Yarudeyskoe oil field on the Yamal peninsula in Northern Siberia.
Igor Yusufov, CEO Fund EnergyThe QIA had made “another deal that will mean additional investment of $2bn”, Al-Thani said before the meeting, although neither side would give further details. However, industry insiders are claiming that Fund Energy, the investment fund set up and run by former Russian energy Minister and Gazprom board director Igor Yusufov, was looking to sell its stake in Yargeo, the JV in charge of the largest oil asset in Novatek’s portfolio.
Yarudeskoye field, Yamal PeninsulaLaunched in December 2015, the field has an annual production capacity of 3.5m tonnes or 9,700 tons of crude oil a day, while the JV also runs a central oil treatment facility, oil and gas gathering systems, a pumping station and gas and crude oil pipelines. After treatment, the oil is transported 350km south to Purpe where it is injected into Transneft’s trunk pipeline system.
In December, Russia’s President Vladimir Putin took to the TV airways to celebrate the news that the commodity trader Glencore and Qatar’s QIA sovereign wealth fund had agreed to buy Moscow’s 19.5% stake in the state-run Rosneft oil giant for a figure Putin put at $11bn, boosted by what he described as “the rising trend in oil prices.”

 
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Eni sells Zohr stake to Rosneft and gives Qatar a foothold in the Med

Rosneft HQJust weeks after snapping up the Russian government’s stake in Bashneft for around $5bn and days after the Qatar Investment Authority and Glencore announced that they were to buy a 19.5% stake in the energy giant from the Russian government for $11bn, Rosneft was in the news again today as it announced that it had agreed to pay Italian oil and gas group Eni $1.125bn for a 30% stake in the offshore Shorouk concession. Zohr Oil Field
(more…)

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Gazprom puts out call for Nord Stream 2 bids in face of EU opposition

Landfall of the Nord Stream Pipeline in GermanyNord Stream 2: Russia’s state energy giant Gazprom continued its defiance to the EU over its plans to build a second gas pipeline under the Baltic Sea to Germany this week by putting out a call for bids for the $11bn Nord Steam 2 project. On completion, the new pipeline would push Nord Stream’s combined annual capacity up to 55bcm and boost Germany’s importance as a transit hub for Russian gas into Europe. (more…)

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BP US CEO Bob Dudley stands back from special Iranian task force

 BP CEO Bob DudleyBP has formed a special task force to study the investment potential of the Iranian oil industry in the post-sanctions era – but, in an attempt to mitigate the risk of the US sticking to its ban on any American involvement in the Islamic Republic, the team is to be headed by its UK-born CFO Brian Gilvary rather than US national CEO Bob Dudley. (more…)

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Total wins race to sign first energy deal with Iran since end of sanctions

South ParsFrance’s Total this week became the first western energy company to sign a major deal with Tehran since the lifting of international sanctions earlier this year by confirming that it had signed a heads of agreement with the National Iranian Oil Company (NIOC) for (more…)

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Russian Minister passes Turkish Stream buck back to Brussels

Russian Foreign Minister Sergei LavrovRussia will only agree to build a European extension to its Turkish Stream pipeline once it receives cast-iron guarantees that it will not meet with opposition from Brussels, its Foreign Minister Sergey Lavrov said yesterday, effectively (more…)

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Astana to auction 60 Kazakh oilfields

Kazakh Energy Minister Kanat BozymbayevKazakh oilfields: Astana is planning to put more than 60 potential oil and gas fields up for auction next year, Energy Minister Kanat Bozumbayev announced yesterday. The majority of the fields are located in the deep waters of the Caspian Sea where (more…)

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Crunch time looms for Nord Stream 2

Nord Stream2 pipesThe future of Gazprom’s plans to lay a second 1,200km long pipeline along the bed of the Baltic Sea – Nord Stream 2 – should become clearer next week, with EU officials due to decide on Monday if it will ease restrictions (more…)

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Naftogaz sues Russia for $2.6bn

Annexation of CrimeaNaftogaz, Ukraine’s state-run oil and gas enterprise, has filed a lawsuit against Russia in the international courts demanding $2.6bn in compensation for losses incurred by the ‘unlawful seizure’ of assets owned either directly by the holding company or through six of its subsidiaries after the annexation of Crimea over two and half years ago. (more…)

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Essar acquisition gives Rosneft foothold in Indian energy market

Sashi and Ravi RuiaEssar: Russian oil giant Rosneft’s ambitions to secure a foothold in the Indian energy sector looks set to become a reality this week with the announcement that it is to buy a 49% stake in Essar Oil, (more…)

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Rosneft privatisation next after Sechin wins $5bn battle for Bashneft

Bashneft Oil field BashkortostanRussian Prime Minister Dmitry Medvedev yesterday gave into pressure from his boss President Putin and signed off on Rosneft’s $5.3bn bid for a controlling stake in the smaller state-owned oil enterprise Bashneft oil – and then (more…)

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Moscow and Ankara bury their differences to set up $1bn Russian Turkish investment fund

Russian Economy MIinsiter Ulyukaev and Turkey's EM Zeybeci Istanbul 09/10/16Russian Turkish investment fund: With Russian President Putin due to meet with his Turkish counterpart Recep Erodgan at the World Energy Congress in Istanbul today,  Moscow and Ankara took another significant step towards (more…)
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Major oil field discovered in Alaska

Caelus Energy exploration platform, AlaskaA little-known energy exploration company this week claimed to have found new recoverable oil reserves in Alaska that could equal Russia’s entire output from its Arctic fields and which could breathe new life into the state’s ailing economy. Caelus Energy LLC, (more…)

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