ROGTEC Magazine - Russian Oil & Gas Technologies - News, Reviews & Articles

ROGTEC Magazine - Russian Oil & Gas Technologies - News, Reviews & Articles

Cadogan Petroleum: Preliminary Results for the Year Ended 31 December 2011

Monday, April 30th, 2012

Cadogan Petroleum plc is an independent oil and gas exploration, development and production company with onshore gas, condensate and oil assets in Ukraine.

The Group has undergone significant management changes during the year, including the appointment of Zev Furst as Chairman and Bertrand Des Pallieres as Chief Executive Officer.

Other developments during 2011 included the following:
-The completion of a major transaction with Eni S.p.A (“Eni”) resulting in Eni owning 60% of the Group’s
interest in the Zagoryanska licence and 30% of the Group’s interest in the Pokrovskoe licence
-A $30 million (excluding VAT) drilling programme on the Pokrovskoe field
-A three‐well work‐over programme on the Zagoryanska field
-Total capital expenditure of $21.3 million (2010: $12.1 million) during the year
-Net cash and cash equivalents at year end of $65.0 million (2010: $36.4 million)


Rosneft Board Recommends Increasing Dividends 25% to 3.45 Rubles per Share

Monday, April 30th, 2012

Rosneft’s Board of Directors convened a regular meeting on April 27, 2012 to consider issues relating to the Annual General Shareholders’ Meeting.

The Board approved the following agenda for the shareholders’ meeting:

  •  Approval of the Company’s annual report
  •  Approval of the Company’s financial (accounting) statements, including profit and loss reports (profit and loss statements)
  •  Approval of the distribution of 2011 Company profits
  •  The size of dividends for 2011 and payment procedure and timeframe
  •  Remuneration and compensation for expenses for members of the Company’s Board of Directors
  •  Election of members of the Board of Directors
  •  Election of members of the Internal Audit Commission
  •  Approval of the Company’s auditor
  •  Approval of related party transactions.

Rosneft’s Board of Directors preliminarily approved the Company’s 2011 annual report and recommended that the Annual General Shareholders’ Meeting adopt a resolution to pay dividends of 3.45 rubles per share based on 2011 results. This dividend level is 25% higher than in 2010.

If the shareholders agree to the recommended dividend amount, a total of 36,563.7 million rubles will be spent on dividends.

The Board recommended appointing CJSC Auditing and Consulting Group Razvitiye Biznes-Sistem as the auditor of the Company’s 2012 annual financial (accounting) statements to Russian standards. The cost of services will be 2,823,150 rubles including VAT.

The Board of Directors defined the list of information (materials) that will be provided to Rosneft shareholders in preparation for the annual shareholders’ meeting, as well as how this information will be delivered. The Board also approved the form of the ballot papers and the text they will carry and determined who will be invited to the meeting.

In addition, the Board of Directors was briefed on Rosneft’s expected financial and operating results for the first quarter of 2012 and also approved the closing of the Company’s Strategic Cooperation Agreement with Italy’s Eni.


Tatneft Has Received 5,000th Patent

Monday, April 30th, 2012

The innovators of TATNEFT commemorated the World Intellectual Property Day this year with registration of the title of protection for the result of intellectual activity.

Russian Federation Patent No. 2446317 for the invention “Method of transportation of highly watered oilfield wells production” obtained by TATNEFT company has become the 5,000th in the history of the inventive activity. The invention is aimed at reducing the pressure in the pipelines for transportation of fluids produced from the wells and reducing the costs of pumping, treatment of crude oil and water conditioning at the process facilities.

The employees of TATNEFT have been traditionally active in the field of technical creativity. Throughout the history of the Joint Stock Company this activity was confirmed by a large number of intellectual property items. The one thousandth title of protection was obtained in 1987, 2,000-th – in 2002, 3,000-th – in 2006 and 4,000-th in 2008.

The Company’s advanced technologies are also patented in foreign patent offices.

OAO TATNEFT possesses 17 foreign patents at present.


Caspian Oil and Gas:Looking to Exit Kyrgyzstan

Monday, April 30th, 2012

Perth-based exploration company Caspian Oil & Gas Limited reports its activities for the March 2012 quarter.

 Mailisu III # 6 has been re-entered and the stuck perforation guns were removed in April. The well is currently being tested and while oil has been recovered, acidisation will be required before a rate can be determined
 Re-perforation and pump testing of West Mailisu #2 failed to produce oil
 While a number of enquiries were received on the Kyrgyz farmout package, political instability and short licence tenure have been obstacles to prospective farmin partners
 A Kyrgyz Government decree requiring all new licences to be issued under an auction or tender process has thwarted plans to renew the licences expiring at the end of 2012
 Technical reviews were undertaken of several oil fields in Kazakhstan, with negotiations and due diligence continuing on one project

June Quarter Plans

 Conclude due diligence and if appropriate negotiations on producing asset in Kazakhstan
 Work towards farmout or disposal of remaining Kyrgyz assets
 Seek new projects, either petroleum or minerals
 With additional work in the Kyrgyz Republic unlikely, the Company will seek to sell its drilling rig

Kyrgyz Republic Oil Projects: Background

Caspian Oil & Gas, through its subsidiaries, holds six exploration licences and three production licences in the Kyrgyz Republic section of Fergana Basin in Central Asia.

Caspian maintains a 650hp drilling rig in the Kyrgyz Republic.


During the winter season, only limited work was able to be undertaken on the Kyrgyz Republic oil projects. In late March a crew was able to re-access the Mailisu III #6 well site and recover the stuck perforation guns from the hole. A pump was connected and a small volume of oil returned. The well will need to be acidised before the flow rate can be determined. Excluding Mailisu III #6, monthly oil production from Caspian’s Kyrgyz wells is
approximately 390 barrels.

In January, re-perforation and pump testing Bed III in the Mailisu III #2 well failed to produce oil, notwithstanding the oil recovered when the well was first drilled. This indicates that either the Bed III reservoir is tight or the heavy mud used to drill through Bed III has damaged the formation.

While it may be possible to re-enter the West Mailisu #2 wellbore and sidetrack from immediately above the Bed III reservoir to test the reservoir zone (Beds III & V) without damaging the formation, this will be left for a potential farm-in partner to assess.

Caspian is reassessing its Kyrgyz interests in view of the effect of the new licensing requirements introduced in late April.


The West Mailisu exploration licence remains valid until December 2014. In 2011 the Katran and Ashvaz licences were dropped and Caspian requested new licences for its East Mailisu, Charvak, Ak-Bura and Sulukta exploration projects. Since those existing licences expire at the end of 2012 there is insufficient time for Caspian to complete more seismic, a drilling campaign, reserve assessment and production licence application by December. While the Subsoil Agency had initially indicated that it was amenable to considering the extension request, in late April a decree dictating that new licences can only be issued after tender or auction has precluded the reissue of those licences to Caspian’s subsidiary.


Caspian has actively pursued potential farminees’ for the Kyrgyz acreage. Whilst there has been interest in the licences from some significant parties, to date none of these leads have progressed due to the perceived political risk in the Kyrgyz Republic and the short licence life remaining on most of Caspian’s exploration licences.

Kazakhstan Opportunities

A number of opportunities in Kazakhstan have been reviewed and the Company is currently investigating and in negotiations for the purchase of one producing asset in the country


Max Petroleum: NUR-1 Sidetracking Frees Stuck Tool

Monday, April 30th, 2012

Max Petroleum Plc, an oil and gas exploration and production company focused on Kazakhstan, today announces an update on drilling at the NUR-1 pre-salt well at the Emba B prospect on Block E. The Company has successfully sidetracked the well around drilling tools that became stuck in early April. After setting intermediate casing at a depth of 5,683 metres, the Company will drill ahead through a thin layer of salt using high density drilling mud designed to handle the high pressure transition in the salt window. Once through the salt, the Company will set another short section of casing prior to the well penetrating the exploration objectives in the Carboniferous and Devonian. The Company expects the well to reach total depth of 7,250 metres in June 2012.


Tatneft: Effective Ways of Corrosion Protection

Friday, April 27th, 2012

OAO TATNEFT has been actively developing methods aimed at further improving the efficiency and reliability of the oilfield equipment operation. The leading specialists of TATNEFT Company have offered a new way of arranging the anode earthing.

The existing anode bed installation technologies have a number of essential shortcomings that affect the efficiency of the oilfield equipment corrosion protection. One of these drawbacks is the electrical contact fault between the anode earthing electrodes due to the subsidence in the operation process. This is especially characteristic of the anode beds happen to be within an area of underground rivers. Another drawback of the existing designs is impossibility to repair the anode bed during operation.

These defects were successfully eliminated by the anode bed installation technology developed by the specialists of TATNEFT by hanging a ferrosilid electrode column on nonmetallic cable and using cover.

The anode bed installation in the hung up position with the installed additional electrodes/potheads solved the problem of the contact reliability between the electrodes. In addition, the introduction of the cover made it possible to retrieve the suspended defective anodic earthing from the well and then lower the fault free one during the operation. Application of these technologies allows extending the life of the anode bed and reducing the cost of its installation.

This development can be used not only in oil, gas and energy industries, but also in the utilities sector through application of electrochemical protection for pipelines.

This invention was awarded a gold medal at the XV-th Moscow International Salon of Inventions and Innovative Technologies “Archimedes – 2012″.


Gazprom reports its 2011 financial results under IFRS

Friday, April 27th, 2012

On April 27, 2012 OAO Gazprom issued its audited consolidated financial statements prepared in accordance with International Financial Reporting Standards for the year ended December 31, 2011.

Sales (net of VAT and customs duties) increased by RUB 1,040,036 million, or 29%, to RUB 4,637,090 million in the year ended December 31, 2011 compared to the year ended December 31, 2010. More detailed information on our sales for the years ended December 31, 2011 and 2010 is presented in the table below.

Net sales of gas increased by RUB 628,643 million, or 29%, to RUB 2,814,848 million in the year ended December 31, 2011 compared to the year ended December 31, 2010.

For the year ended December 31, 2011 net sales of gas to Europe and other countries increased by RUB 339,844 million, or 31%, to RUB 1,439,069 million compared to the year ended December 31, 2010. This mainly results from the increase of average realized prices in RUB terms (including customs duties) by 23% which was enhanced by the increase of volume of gas sold by 6%, or 8.5 bcm.

Net sales of gas to FSU countries increased by RUB 187,041 million, or 42%, to RUB 637,178 million in the year ended December 31, 2011 compared to the year ended December 31, 2010. The increase of sales in this segment is explained by the increase of average realized prices in RUB terms (including customs duties, net of VAT) by 21%, which was enhanced by the increase of volume of gas sold by 16%, or 11.5 bcm.

Net sales of gas in the domestic market increased by RUB 101,758 million, or 16%, to RUB 738,601 million in the year ended December 31, 2011 compared to the year ended December 31, 2010. This is explained primarily by the increase in the average domestic price for gas established by the Federal Tariffs Service.

Net sales of refined products increased by RUB 263,964 million, or 37%, to RUB 973,026 million in the year ended December 31, 2011 compared to the year ended December 31, 2010. The increase was due to the increase of prices for refined products and increase of volumes sold.

Net sales of electric and heat energy increased by RUB 55,896 million, or 19%, to RUB 344,551 million in the year ended December 31, 2011 compared to the year ended December 31, 2010. The increase in electric and heat energy sales is explained by the increase in tariffs for electric and heat energy and the increase in volumes.

Net sales of crude oil and gas condensate increased by RUB 39,358 million, or 20%, to RUB 235,432 million in the year ended December 31, 2011 compared to the year ended December 31, 2010. The increase related mainly to activities of Gazprom neft Group: sales of crude oil increased by RUB 20,752 million, or 12%, to RUB 189,945 million in the year ended December 31, 2011 compared to the year ended December 31, 2010, mainly due to the increase in oil prices. Sales of gas condensate increased by RUB 18,606 million, or 69%, to RUB 45,487 million in the year ended December 31, 2011 compared to the year ended December 31, 2010. Increase of gas condensate sales was due to the increase of average realized prices and volumes of gas condensate sold.

Net gas transportation sales increased by RUB 20,364 million, or 22%, to RUB 112,995 million in the year ended December 31, 2011 compared to the year ended December 31, 2010. The increase was mainly due to increase in tariffs and volumes of gas transported for independent gas suppliers.

Operating expenses increased by RUB 501,404 million, or 21%, to RUB 2,942,181 million in the year ended December 31, 2011 compared to the year ended December 31, 2010.

The major item in the total amount of operating expenses is “Purchased gas and oil” which increased by RUB 222,715 million. The increase in cost of purchased gas relates to the increase in volumes and prices of gas purchased from third parties within Russian Federation and abroad.

In the year ended December 31, 2011 our profit for the year attributable to owners of OAO Gazprom totaled RUB 1,307,018 million which is RUB 338,461 million, or 35%, higher compared to the year ended December 31, 2010.

Our net debt balance (defined as the sum of short-term borrowings, including current portion of long-term borrowings, short-term promissory notes payable, long-term borrowings, long-term promissory notes payable and restructured tax liabilities, net of cash and cash equivalents and balances of cash and cash equivalents restricted as to withdrawal under the terms of certain borrowings and other contractual obligations) increased by RUB 163,948 million, or 19%, from RUB 870,993 million as of December 31, 2010 to RUB 1,034,941 million as of December 31, 2011. This can be explained by the raising of new long-term and short-term borrowings, the appreciation of USD and Euro against RUB and decrease in cash and cash equivalents.

More detailed information on the IFRS consolidated financial statements for the year ended December 31, 2011, can be found here.


Alexander Fridman Leads Novatek Delegation at Neftegazstroy-2012

Thursday, April 26th, 2012

Alexander Fridman, Deputy Chairman of the Board of NOVATEK OJSC, will take part in the Second Annual Conference NEFTEGAZSTROY-2012, which is to be held on May 22 in the Radisson-Slavyanskaya Hotel. This event is supported by the Russian Ministry for Energy.

The key topic to be discussed at the Conference is establishment of EPC contractors in the Russian market. Most countries of the world organize the oil and gas construction process according to the EPC Engineering, Procurement and Construction) model. This approach means that a customer chooses a single general contractor who takes responsibility for the following types of works: design, engineering, procurement. The EPC contractor searches for subcontractors who perform construction works.

Giving the whole project to a foreign EPC contractor may cause difficulties, as the Russian customers and foreign contractors still speak different languages (literally and figuratively). This work should be performed by Russian specialists, who are familiar with the advanced foreign experience, know foreign languages, but as well understand the regulatory base and bureaucratic processes in Russia and can contact with Glavgosexpertiza and other state authorities. A EPC contractor from abroad does not know the Russian equipment and, consequently, plans to use in the project the foreign products familiar to him. That is why establishment of Russian EPC contractors is very important in terms of supporting the Russian industry.

Among the participants of the event are: Director of the Directorate for Procurement and Capital Construction of Gazprom neft Abdulla Karaev; Deputy General Director for Capital Construction of Surgutneftegaz OJSC Alexander Rezyapov; Director of Department for capital Construction of Bashneft OJSC Sergei Tsybin; and many oil and gas construction contractors. Gazprom OJSC and AK Transneft OJSC are forming their delegations.

For information on participation in the event, please call: (495) 514-44-68, 514-58-56;;

Varyoganneftegaz to Perform Well Workover Program in 2012 to Increase Oil Production

Thursday, April 26th, 2012

Varyoganneftegaz (a member of the TNK-BP Group) will carry out a large-scale well workover program in 2012 with an effect of production growth by more than 1 mln tonnes, which is 25% higher than the same figure of 2011.

The company plans to reactivate idle wells and improve active well stock production performance by implementing a package of process solutions that include fracturing, bottomhole optimization, water shut-off, well chemistry and sidetracking. As of today, the production stock of Target Subsidiary Varyoganneftegaz (VNG) includes ca. 2,200 wells. Pursuant to the business plan, the well workover program is to provide more than 14% of the total VNG production volume in 2012.

‘Wellworkover is a key driver of brownfield production performance improvement. We commission about 100 new wells each year. In addition to that, VNG will carry out 30 sidetracking jobs for subsequent commissioning of idle stock wells in 2012’ said Alexander Dodds, TNK Executive Director and Executive Vice President, Upstream.


Tatneft’s Board Discuss the 2011 Results

Thursday, April 26th, 2012

A regular meeting of the Board of Directors of OAO TATNEFT was held in Kazan (Tatarstan) on April 26, 2012. The Board of Directors discussed the results of the Company’s budget execution for three months of 2012 and approved the budget for May.

The Board of Directors discussed the results of financial and economic activities of OAO TATNEFT in 2011.

25 million 929 thousand tons of crude oil were produced at the Company’s fields last year exceeding the level of 2010 by 65 thousand tons. The amount of 226 thousand tons of crude oil was produced at the licensed fields of the Company’s subsidiaries in the Russian Federation outside Tatarstan.

Extra-viscous oil production at Ashalchinskoye field amounted to 42,000 tons with the total production from the beginning of the field development amounting to about 107 thousand tons as of January 01, 2012.

Mean time between failures operation of the wells reached 1,142 days. This is still the highest index among the major oil companies in the country.

Implementation of the resource saving program continued and implemented activities resulted in decreasing the specific energy consumption for production of crude oil by 0.7% compared to 2010.

The net revenues (excluding VAT and export tax) increased by 23.5% compared with the corresponding period of 2010 and amounted to 318.6 billion rubles. The net profit for 2011 amounted to 54.9 billion rubles.

The total amount of taxes and payments, including the export tax, charged to all budget levels amounted to 321 billion rubles.

65.8 billion rubles were directed to execution of the investment program for all production activities of TATNEFT Group of Companies, including 26.7 billion rubles for crude oil production and 36.2 billion rubles for the construction of the Oil Refining and Petrochemical Complex

The Board of Directors was presented the information about the annual general meeting of shareholders, as well as about the composition of OAO TATNEFT’s Board of Directors, and also considered a number of other issues of the Company’s activities.

The Board of Directors considered the issue of dividends payment for 2011.

The Board of Directors approved the agenda of the General Annual Shareholders’ Meeting.



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