Corporate Monitor



Gazprom Chairman Alexey Miller appointed Vitaly Markelov the general director of Tomsktransgaz, a wholly-owned Gazprom subsidiary. Before his appointment, Markelov worked as deputy general director for transportation and utilization of gas at Tomskgazprom. Vostokgazprom Vice President Mikhail Chernov has been the acting general director at Tomsktransgaz since last October. Earlier, the post had been held over many years by Vyacheslav Tolmachev, who retired last October.

SOCAR President Natik Aliev appointed Rizvan Vakhabov the general director of the recently created department of pipeline transport. Vakhabov is a member of SOCAR's board of directors.

Aliev also appointed Elshad Nasirov head of the marketing and economic operations department which has been created by merging SOCAR's subsidiary Azernefttajizat with its department for foreign economic relations.

John Barry has been named chairman of Royal Dutch-Shell in Russia. Barry's appointment is part of a planned rotation, Vice President for External Affairs Maxim Shoob told reporters. Royal Dutch-Shell underscores its commitment to develop its activities in Russia as a large, long-term investor in all aspects of the energy business, stressed Mr Shoob.

Gazprom signed a new three-year contract with Gazprominvestholding general director Alisher Usmanov whose previous contract had expired. Usmanov was born in 1953. He graduated from the Soviet Foreign Ministry's Moscow Institute for International Relations in 1976. From 1998 to 2000, Usmanov held the post of first deputy general director at Gazprominvestholding. In 2000-2001, Usmanov worked as an adviser to the chairman of Gazprom. He has been general director of Gazprominvestholding since 2001.
Gazprom, Gazeta

Gazprom Chairman Alexey Miller appointed Andrey Frolov general director of Burgaz, Gazprom's drilling subsidiary. Before his appointment, Frolov headed a Burgaz branch in Orenburg. According to Gazprom's press service, the contract with Frolov's predecessor Viktor Vyakhirev was canceled under mutual consent.

Former YUKOS-RM President Nikolay Bychkov was appointed a new representative of the province of Mordovia in Russia's upper chamber of

parliament, the Federation Council. Bychkov succeeded former YUKOS Vice President and former Chairman of Russia's Jewish Congress Leonid Nevzlin.


Russian President Vladimir Putin and Turkmen President Saparmurat Niyazov signed a 25-year agreement on cooperation between the two countries in the gas industry. Gazexport, a wholly-owned Gazprom subsidiary, and Turkmenistan's state-owned Turkmenneftegaz signed a long-term contract for the purchase and sale of Turkmenistan's gas over the same 25-year period.

According to the contract, Gazexport will buy 5 to 6 bcm of gas from Turkmenneftegaz next year. In 2005, the purchase will go up to 6-7 bcm, in 2006 it will reach 10 bcm, in 2007 from 60 bcm to 70 bcm, in 2008 from 63 bcm to 73 bcm. From 2009, Turkmenistan will ship from 70 bcm of 80 bcm each year. As of Jan. 1, 2004, the price of gas will be set at $44 per 1,000 cu m.

Payment for the supply of Turkmenistan's gas in 2004-2006 will be 50 percent in cash and 50 percent in deliveries of equipment to develop Turkmenistan's gas industry. At a later stage the parties will negotiate terms of payment for gas deliveries beyond 2006. The bilateral agreement and contract comes into effect on Jan. 1, 2004, and will remain in force until Dec. 31, 2028.

Gazexport and Gaz de France signed a new deal to supply natural gas to France. The new agreement extends the existing deal between the companies from 2008 to 2015. Under the existing contract, Gazprom delivers 8 bcm of natural gas to Gaz de France annually. The price of the new contract takes into account the growth in expenses related to production and shipping of the new volumes of gas. The two companies started their cooperation in 1976. Since then, Gazprom has delivered over 225 bcm of natural gas to Gaz de France. Last year, Gazprom shipped 11.4 bcm of gas to its French partner.

Gazprom redeemed series A1 bonds in the amount of $3 bln rubles, the company said in a press release. At the same time the company paid the coupon on its eighth and ninth series bonds. The coupon amounted to 29.58 rubles per bond (5 percent per annum in US$) for the eighth series, and on the ninth series, with compensation for growth of the US dollar rate for the entire period of circulation, to 293.13 rubles.

Gazprom intends to exercise an option for a $900-mln buyout of 16.3 percent of shares in Slovakia's gas pipeline network operator, Slovensky Plynaresky Priemysel (SPP), currently held by Ruhrgas and Gaz de France, Gazprom's representative in Slovakia Dmitry Malyshev said. In March last year, the Slovak government offered 49 percent of SPP shares in a tender which was subsequently won by a consortium comprising Gazprom, Ruhrgas and Gaz de France. The consortium paid $2.7 bln for the package. Each of the companies was supposed to pay $900 mln. However, Gazprom lacked funds and the consortium partners paid on its behalf, Gazprom receiving a two-year buyout option. The German energy consortium RWE is another major shareholder controlling 34 percent of the SPP stock. The Slovak government owns the remaining 17 percent of company shares.

In 2005, Severgazprom, a subsidiary of Gazprom, plans to complete reconstruction of the Sosnogorsk gas processing plant in the city of Ukhta in Russia's northern province of Komi, a source close to the company said. After the reconstruction, the plant's processing capacity will double and will total 3 bcm per year. Skoda, the Czech consortium, is running the �100-mln project to modernize the plant.


The London Stock Exchange, which trades in LUKOIL securities, placed the company's strategic development program on its website. The plan shows LUKOIL intends a significant increase in oil production.

From 2008 to 2013, the program envisions an average output of 110 mln t (726 mln bbl) of oil and 33 bcm of natural gas per annum. By 2008, LUKOIL plans to boost explored reserves to 2.5 bln t (16.5 bln bbl) of oil and over 1 tcm of natural gas.

By 2008, LUKOIL's oil and gas production units will receive $19 bln in investment. Other units involved in the transportation and marketing of oil and petroleum products will receive around $2 bln. The company also plans to almost double the number of its filling stations in Europe and Russia over the same period.

LUKOIL President Vagit Alekperov and Gazprom Chairman Alexey Miller signed a cooperation agreement for gas supplies from the Nakhodkinskoye field of the Bolshekhetskaya Depression (in the Yamalo-Nenetsky autonomous district).

According to the deal, LUKOIL will sell to Gazprom up to 0.75 b�m of gas in the 4th quarter of 2005 and up to 8 bcm of gas in 2006. Gazprom committed to pay for gas and its transport via the unified Russian gas supply system. The document also determines the pricing formula under which Gazprom will buy gas from the Nakhodkinskoye field at the Yamburg compressor station.

This agreement shall be an additional part of the general agreement on strategic partnership between LUKOIL and Gazprom for 2002-2005. The general agreement confirms, in particular, a joint implementation of projects to explore and develop oil and gas fields in the Yamalo-Nenetsky autonomous district, the Nenetsky autonomous district and the Russian sector of the Caspian Sea.

SOCAR President Natik Aliev and LUKOIL President Vagit Alekperov signed a package of agreements on additional terms and conditions for the exploration and development of a promising offshore block, Yalama D-222, in Azerbaijan's sector of the Caspian Sea. According to the agreement, LUKOIL will expand its contracted area from 1,287 sq km to 3,037 sq km. LUKOIL also increased its share in the project from 60 percent to 80 percent by purchasing a 20-percent stake held by SOCAR. LUKOIL Overseas Holding Ltd is the project operator.

The D-222 Block is part of Yalama which is the largest promising structure in the mid Caspian. At a distance of 30 km from the coastline, the structure almost equally covers the Azerbaijani and Russian sectors of the Caspian. The structure is situated at depths ranging from 80 to 700 m. There is a high probability of hydrocarbon reserves. The drilling of the first exploratory well in the contracted area of the D-222 Block, using a semi-submersible drilling platform, is planned for the second half of 2004.

LUKOIL Overseas along with a Syntroleum corporation subsidiary, Advanced Gas Technology Partners (�GTP), have signed a letter of intent to create a joint venture that would build a system for collecting associated gas, as well as construct units for initial processing of gas with separation of liquid hydrocarbons. The JV will also be involved in marketing the products. The first step is for the parties to conduct

a feasibility study. According to LUKOIL Overseas representative Grigory Volchek, the first two projects will take place in the north of the Perm region and the Pechora district of the Komi province. According to preliminary estimates, the price of each of these projects could total $25-27 mln.

The total volume of associated gas processing could total up to 25 mln cu fpd (around 340 mcm per year), and the amount of separated liquid hydrocarbons could reach 5,000 bpd (250,000 t per year). LUKOIL is not Syntroleum's only partner in Russia. The US company has already signed an agreement with Yakutgazprom (a Sakhaneftegaz subsidiary) to build an LNG plant and now hopes to clinch a similar deal with Gazprom.


Transneft wants to obtain at least 50 percent of the shares of Ventspils Nafta (VN), the company in charge of the oil terminal in the Latvian port of Ventspils, for $143 mln, Transneft Chairman Semyon Vainshtok said. The Latvian government plans to sell 38.82 percent of VN shares this year. Earlier, Latvian shareholders had already proposed selling Transneft 34 percent of VN's stock. According to Vainshtok, the Latvians valued 100 percent of the company's shares at $205 mln. 'We have offered to invest $143 mln in exchange for 50 percent of shares,' said Vainshtok.


Russia's Property Ministry has announced the starting price of a special bid to sell 0.073 percent of YUKOS' shares held by the government. The price has been set at 460.16 mln rubles - $8.97 per share. After the sale, YUKOS will become a 100-percent privately owned company. According to the announced price, the Property Ministry values a barrel of YUKOS' reserves at $1.52.


The Sibneft board of directors has approved the agenda for the upcoming annual shareholders meeting to be held on May 15, 2003. The board has also scheduled an extraordinary shareholders meeting for May 28, 2003. At the May 28 extraordinary general meeting, shareholders will be asked to approve the acquisition by Sibneft of Kretans Holding Ltd, an oil trading firm operating on the domestic market. The acquisition is part of Sibneft's ongoing program to consolidate all trading operations.

Sibneft sold to TNK its 1-percent stake in ONAKO oil company and the 38-percent interest in ONAKO's production unit, Orenburgneft, which owns 89 production licenses in the Orenburg region. Last year, Orenburgneft produced 9 mln t of oil. A source in Alfa-group, speaking on condition of anonymity, told Interfax that now TNK controls 100 percent of the shares in both ONAKO and Orenburgneft.


Surgutneftegaz summed up the results of its activities in the first quarter of the year. Oil production totaled 12.87 mln t, an 11-percent increase on the first quarter of 2002. Gas output rose by 10 percent, totaling 3.55 bcm. The scope of drilling work went up by 8 percent and totaled 727,000 m. Exploratory drilling accounted for 61,000 m, comparable to the same figure for 2002. In the first quarter this year, the company brought on stream 220 new wells, 12 more than the same period last year.


Responding to media enquiries about Tatneft's activities in Iraq, the company's press service released the following information: Tatneft's operations in the Republic of Iraq were sanctioned by the United Nations within the framework of the contract with Zarubezhneft to drill 45 wells, as well as under Tatneft's own contract with the Northern oil company to drill 33 wells.

Last fall, the company started to fulfill the deal with Zarubezhneft. Within five months, Tatneft drilled and handed over to the Iraqi partners one well and started working on a second. When the fighting started, the drillers had completed 520 m (1,705 ft) of drivage.

At the moment, both contracts have been frozen due to the fighting in Iraq. The company's staff of 26 have been evacuated. The only Tatneft property left behind was the drilling unit leased to Zarubezhneft under the contract.


Rosneft, LUKOIL and the Krasnodar province administration have set up a joint venture to explore and develop a gas field located on the Azov Sea shelf, Rosneft President Sergey Bogdanchikov said. Rosneft will invest $700 mln into the reconstruction of the Tuapse oil refinery, he added. According to Bogdanchikov, the investment will pay off in four to five years.


The Far East Shipping company (DVMP) has won a tender to provide support for Orlan drilling platform operations in the Sakhalin-1 project, the DVMP press service said. The platform is owned by the project operator, Exxon Neftegaz Ltd. According to DVMP's press secretary Alexandra Savelyeva, the company will build a special ice-class vessel that will support all offshore operations at the Orlan platform. In addition to this, DVMP ice-breakers will pilot vessels to the platform.


The Vyksa Steel Works, part of the Unified Metallurgical Company (OMK), has shipped the first batch of 1,850 t of pile pipes for the Sakhalin-1 project. The pipes were manufactured under a contract that OMK had been awarded after winning a bid in February. All requirements put forward by the project operator, Exxon Neftegaz Ltd, have been met - pipes of 762 mm (30 in) diameter and 12 mm wall thickness comply with the API 5L international standard. The second batch will be manufactured in April. According to the contract, the works will manufacture around 2,000 t of pipes with a special anti-corrosion coating.

The Unified Metallurgical Company (OMK) and the Chelyabinsk Pipe Rolling Mill (ChPTZ) have won a tender held by Azerbaijan's state-owned Azerigaz to deliver pipes for the project called 'Rehabilitation of Azerbaijan's Gas System.' OMK and ChPTZ will share the entire order on a 50-50 basis. The scope of deliveries and the contract price were not disclosed.

Oil&Gas; Eurasia applies to BPA International for membership

Eurasia Press, Inc. announces
North American strategic marketing partnership with C4Omnigroup, Inc. of Houston, Texas.!

Free! Web Offer Exclusively to OGE Advertisers. Find out more!

Teplomag Heat Tracing

Schlumberger Discovery MLT Completions

Pipe Metallurgical Co.

UralAZ Heavy Vehicles

MIKON Diagnostics & Automation

Get an update on Russia's largest oil and gas companies.


industry outlook | applied technology | business know how | caspian watch | russian majors
about us | media kit | subscribe | events | jobs | home