Wednesday, November 24th, 2010
LUKOIL Group total hydrocarbon production available for sale reached 2,249 th. boe per day in nine months of 2010, which is a 1.6% increase y-o-y.
Crude oil production by LUKOIL Group in nine months of 2010 totalled 72.27 mln tons. Natural and petroleum gas output of LUKOIL Group available for sale was 13.80 bcm (grew by 26.1% y-o-y) of which output as part of international projects totalled 3.65 bcm and output in Russia was 10.15 bcm. Increase in Group hydrocarbon production was due to a larger amount of gas sales to Gazprom and hydrocarbon production growth in international projects.
Throughputs at the Company’s refineries (including its share in throughput at ISAB and TRN refining complexes) increased by 6.7% y-o-y in nine months of 2010 and reached 49.70 mln tons. Throughputs at the Company’s refineries in Russia increased by 1.1% y-o-y, throughputs at the Company’s international refineries grew by 21.4% y-o-y.
Wednesday, November 24th, 2010
Fifth Annual Conference “Offshore Oil and Gas Equipment” to be held in Moscow on December 9
On December 9, Moscow will host the fifth annual conference, “Offshore Oil and Gas Equipment” (NEFTEGAZSHELF-2010) that will be attended by a delegation from OJSC “Gazprom”, headed by director of the offshore technologies department, Vladimir Vovk.
Development of the Russian offshore fields provides ample opportunities for industrial development. Large-scale construction projects require a lot of cargo-handling equipment, road construction equipment, pipes, onshore and offshore structures.
The Conference will be of interest to suppliers of industrial products. The fifth annual conference will look at practical issues relating to local suppliers’ involvement in offshore projects. The event is attended by representatives of Russian and international offshore oil and gas producers, designers and manufacturers of industrial products.
We invite you to take this opportunity to meet with important customers on December 9.
Phones: (495) 514-58-56, 514-44-68; Fax: (495) 788-72-79
Tuesday, November 23rd, 2010
Today Rosneft produced the 15-millionth ton of oil since the beginning of operation on Vankor field.
The Vankor oil and gas field is located in the north of Krasnoyarsk Territory. Commercial oil production began in August 2009. 117 producing wells on 14 well pads deliver current daily production of 36,000 tons (more than 263,000 barrels per day). In the first 10 months of 2010 the Vankor field produced 11 mln tons of oil. The annual production plan for the year is 12.7 mln. tons, that’s 200,000 tons over planned volumes.
Facilities currently operating at the field include a booster pump station with preliminary water separation unit, as well as a diesel fuel production facility with capacity of 50 thousand tons a year to supply the company’s own needs.
Crude oil produced at the field is transported via the 556-kilometer Vankor – Purpe oil pipeline with three oil pumping stations connecting to the Transneft pipeline system. There are 150 km of infield pipelines, 60 km of gas pipelines, around 100 km of roads, 700 km of power lines and modern living quarters camps for 2000 people. Over 90% of equipment used on the field, that’s over 450 units, is produced in Russia.
In 2014 ZAO Vankorneft – a Rosneft subsidiary – will reach production volume of 25.5 mln tons per year in line with the development plan. This figure represents close to 5% of the total annual oil production in Russia.
Tuesday, November 23rd, 2010
Rosneft and China National Petroleum Corporation (CNPC) signed a memorandum on expanding cooperation in the upstream sector. The document was signed by Rosneft’s President Eduard Khudainatov and General Director of CNPC Jiang Zemin within the Russian-Chinese energy dialogue held on November 22-23 in St. Petersburg.
Rosneft and CNPC will consider potential purchasing new offshore and onshore blocks through LLC Vostok Energy, a JV between Rosneft (51%) and CNPC (49%) established to operate upstream assets in Russia. A working group will be formed to study different opportunities.
During the meeting the heads of the companies also noted the progress in the cooperation in the downstream sector. As part of this cooperation, the parties signed a feasibility study agreement at the end of September, 2010 for construction of a refinery in Tianjin (China). The works within the project are carried out by the Chinese-Russian Eastern Petrochemical Company, a JV between CNPC (51%) and Rosneft (49%).
Speaking at the ceremony, the parties noted that the Memorandum maintains the principle of reciprocal cooperation, and thus propels Russian-Chinese cooperation in the oil sector to a new level.
Thursday, November 18th, 2010
Signed shipbuilding contracts for two 14-streamer 3D seismic vessels
Total estimated project CAPEX of USD 168 million per vessel
Optimized vessel size for cost effective operations
Timely delivery of both vessels in first half 2012
Highly favorable financial terms with 80% of project CAPEX payable
at, or close to delivery
Equity issue of USD 65 million
Polarcus Limited (OAX: PLCS) is pleased to announce that the Company has today signed shipbuilding contracts for two additional high-end 3D seismic vessels for delivery in the first half of 2012. The Company is simultaneously launching an equity issue of USD 65 million through a private placement to partly finance the new vessels’ total estimated project capital expenditure of USD 168 million per vessel.
“This new order for two further high-end 3D seismic vessels underscores our commitment to be the new seismic major,” commented Rolf Ronningen, CEO Polarcus. “We have been able to take maximum advantage of the current availability of yard slots to execute shipbuilding contracts on highly favorable payment terms and to secure beneficial delivery times of the newbuilds. We have furthermore taken the strategic decision to build these vessels in Norway to avail ourselves of significant and advantageous financing from the Norwegian Institution for Export Financing, Eksportfinans ASA”.
“Both newbuilds are of the same proven design as our existing POLARCUS ASIMA and POLARCUS ALIMA vessels. They also incorporate some additional advanced capabilities, including the ability to tow up to 14 streamers, which will position these vessels firmly in the most active 12 to 14 streamer market segment, thereby maximizing vessel operating profitability” continued Ronningen. “Their timely delivery in the first half of 2012 will place Polarcus in pole position to ride a sector recovery.”
The announcement increases the size of the Company’s high-end 3D seismic fleet to seven vessels, with a corresponding projected increase in market share to approximately 13% after delivery in 2012.
New Shipbuilding Contracts
The shipbuilding contracts for two additional high-end 3D seismic vessels for delivery in March and June 2012 respectively have been signed with Ulstein Verft AS. The two newbuild seismic vessels will be constructed to the ULSTEIN SX134 design but with a higher ice class (“ICE 1A super”), increased propulsion and other innovative efficiency enhancing features. The vessels will be capable of towing up to 14 streamers with 100m lateral separation between streamers.
The total estimated project capital expenditure based on current exchange rates is USD 168 million per vessel, including seismic equipment. Approximately 80% of the total project capital expenditure will be due at, or close to delivery of the vessels. The Company has received a proposal from Eksportfinans ASA for long term financing for the two vessels of up to 80% of the total project capital expenditure at a fixed interest rate of 2.85% in addition to guarantee commission to GIEK and customary interest rate and fees to fronting commercial banks. The financing is repayable over 12 years in equal semi-annual installments. The Eksportfinans facility is subject to approval by the Norwegian Guarantee Institute for Export Credits (“GIEK”).
Private Placement of shares
Polarcus Limited (“Polarcus” or “the Company”) has retained ABG Sundal Collier Norge ASA and SEB Enskilda AS as lead managers, and Pareto Securities AS and DnB NOR Markets, part of DnB NOR ASA, as co-managers (all hereinafter the “Managers”), to advise on and effect an equity issue of up to USD 65 million through a private placement (the “Private Placement”) directed to professional Norwegian and international investors. The Private Placement will enable the Company to partly finance the equity part of the total estimated project capital expenditure. The issue price for the Private Placement will be set through a book-building process conducted by the Managers. The minimum order in the Private Placement has been set at an amount equaling at least EUR 50,000.
The book-building period will commence today at 17:30 CET and close on 19 November 2010 at 08.30 CET. The Board of the Company may, however, at any time resolve to close or extend the application period at its own discretion.
The allocation of shares will be determined at the end of the book-building process. The final allocation will be made at the Board’s sole discretion. The investors will receive Placement Shares (in the form of depository receipts) registered on a separate International Securities Identification Number (ISIN) than the existing shares of the Company. Listing and trading of the Placement Shares on Oslo Axess is subject to approval of a listing prospectus by the Norwegian Financial Supervisory Authority (“FSA”), at which time the Placement Shares are contemplated to be transferred to the same ISIN as the existing shares of the Company. The approval of the listing prospectus is expected to take place on or about 24 November 2010.
Allocation: on or about 19 November 2010 at the sole discretion of the Board.
Payment of shares: on or about 24 November 2010.
Delivery of Placement Shares: on or about 24 November 2010.
Approval of the listing Prospectus and transfer of the Placement Shares to the Company’s ordinary ISIN: on or about 24 November 2010
The Board reserves the right, at its absolute discretion, to cancel the Private Placement at any time.
Thursday, November 18th, 2010
Early in November, on the Urievsk oil field, Weatherford completed the first Russian engineering and technical maintenance operations during construction of horizontal well sections with the use of full range of 4 ¾ in. LWD Triple Combo (conventional assembly of three combined logging while drilling sensors).
The operations were conducted by Weatherford Directional Drilling PL specialists. The operations were conducted in the interval of 2961-3430 meters (in vertical section of 2657-2660 meters). While gathering data for processing and interpretation of logging data while drilling (Logging-while-Drilling or LWD), the communication channel for real time data transfer (Weatherford Real Time Solutions WITSML) was successfully operated.
Interpretation of obtained logging data was conducted and delivered to the Customer two times per day. Upon retrieval from the memory unit the data was interpreted utilizing the Interactive Petrophysics software and the final conclusion was provided to the Customer in a form of plot record, report as LAS-files processing with logging data and interpretation results.
The Customer highly appreciated the pilot operation performed. Currently the equipment is ready and Weatherford specialists waiting for commencement of operations on the next horizontal well but on a different field under more complicated drilling conditions.
Wednesday, November 17th, 2010
Market growth drives need for operations base covering three service lines
HOUSTON – November 17, 2010 –Baker Hughes (NYSE: BHI) announced today that it has opened a new facility in Welshpool, Australia, to meet growing demand and increased oilfield activity in Australia. Three of the company’s service lines–pumping services, tubular services, and process and pipeline services–are now housed in the new 340,000-square-foot facility.
Major growth in the region prompted the company to expand its presence and increase personnel nearly fourfold during the past three years. Earlier this year, Chevron Pty Ltd awarded Baker Hughes a contract to provide pipeline precommissioning services on the Gorgon Project off the Northwest Shelf of Australia. Work has begun and is scheduled for completion by the end of 2013.
“To support our dramatic increase in activity, we required a larger facility to accommodate more staff and equipment. By consolidating three service lines at one base, we can share resources and work together as a team more efficiently. Our customers ultimately benefit from these synergies,” says Jaipreet Singh, Baker Hughes Australia area manager for process and pipeline services.
The new purpose-built facility, which serves as the operations base for Australia and New Zealand, includes offices, laboratories, training space, workshop facilities, a warehouse and storage, and an equipment lay-down area. To support operations in the region, Baker Hughes maintains a full complement of equipment for pumping services, tubular services, and process and pipeline services at Welshpool. Baker Hughes also houses the largest fleet of nitrogen services equipment in Australia.
Wednesday, November 17th, 2010
Opens First Multinational Research Center Dedicated to Exploration and Production Activity in Brazil
Schlumberger today inaugurated a new research and geoengineering center in Rio de Janeiro, Brazil. The Brazil Research and Geoengineering Center is designed to promote the integration of geosciences and engineering to improve hydrocarbon production and recovery from the complex deepwater reservoirs and pre-salt carbonates offshore Brazil.
“We are very excited to be opening this new center here in Rio de Janeiro,” said Ana Zambelli, Brazil GeoMarket manager, Schlumberger. “Future oil and gas production will increasingly lie in technically complex environments such as pre-salt carbonates and deepwater areas and we expect this facility, the first multinational research center in Brazil, to play an important role in responding to these and other demanding technical challenges.”
The new center includes a Geoengineering Research Center, a Geoengineering Technology Center, and a GeoSolutions Hub in addition to a number of Reservoir Laboratories. Each element fills a key need in deepwater and pre-salt reservoir exploration and development. The Research Center, which is designed to work in close collaboration with both customers and academia, will conduct research and development to improve industry understanding of pre-salt formations and their optimal development. The Geoengineering Technology Center will pursue geoscience workflows using state-of-the-art Ocean* application development and Petrel* seismic-to-simulation software. Regional solutions to the integration of data from seismic and other techniques will be developed in the WesternGeco GeoSolutions Hub while three Reservoir Laboratories provide the facilities to test and evaluate reservoir rocks and fluids under controlled conditions for multiple applications including well construction and reservoir stimulation.
The Brazil Research and Geoengineering Center covers 10,000 m2 in floor area, and is the first such Schlumberger facility in the southern hemisphere. When fully staffed, up to 300 scientists, engineers and technical staff working in multidisciplinary, collaborative teams will work on the development of innovative solutions to the technical challenges associated with the complex formations found deep offshore Brazil. Continuing a theme that now runs across all Schlumberger research centers, the new Brazil facility is located close to the leading academic expertise of the Federal University of Rio de Janeiro, and is located on the same campus that houses the Petrobras CENPES Research Center.
Schlumberger has operated in Brazil since 1945, offering technology solutions to local oil and gas industry challenges. Today the company manages its operations from 12 locations across the country and employees a total of more than 2000 people in Brazil.
Wednesday, November 17th, 2010
LUKOIL PLEDGES COOPERATION WITH THE GOVERNMENT OF THE KOMI REPUBLIC
Vagit Alekperov, OAO LUKOIL President, and Vyacheslav Gaizer, Head of the Komi Republic, signed a Cooperation Agreement today between the Company and the Government of the Republic in Syktyvkar.
According to the agreement, the parties will cooperate in the area of subsoil geological exploration, production and processing of hydrocarbon materials, development of the oil supply system, production and social infrastructure, as well as in other areas of mutual interest.
Specifically, the Government of the Republic of Komi will ensure an equal standing of LUKOIL and its subsidiaries among the companies operating in the Republic, including implementation of projects aimed at the development of heavy high-viscosity oil fields or those in the closing production stage.
The agreement also provides for competitive development of the Company’s infrastructure for petroleum product storage and sales, including construction of new filling stations and renovation of the existing ones, and aircraft fueling in the airports of the Republic.
LUKOIL plans to increase the scope of its work aimed at reclamation of the territories contaminated with oil and petroleum products and those contaminated before, as well as capital repair and the replacement of oil pipelines.
LUKOIL will also take all necessary steps to prevent environmental pollution in the regions of its presence and to immediately respond to the negative consequences should accidents or emergency situations occur.
The Agreement shall be valid up to December 31, 2014. The former Cooperation Agreement of 2006 between the Komi Republic and OAO LUKOIL ceased to be effective.
Tuesday, November 16th, 2010
Today LUKOIL Finance Ltd. (a wholly owned subsidiary of OAO LUKOIL) has made a partial advance payment under the 1.5 billion unsecured club facility (the “Facility”) arranged in August 2010, with the maturity of 1 year. The Facility was guaranteed by OAO LUKOIL.
The advance payment of USD 1 billion was made with the proceeds obtained from the eurobonds issue in November, 2010.
The Facility was arranged by The Bank of Tokyo-Mitsubishi UfJ, Ltd., Citibank, N.A., London branch, ING Bank N.V., London branch, NATIXIS, The Royal Bank of Scotland N.V., WESTLB AG, London branch. Citibank International PLC acted as an agent for the transaction.