SPD has reached a massive milestone earlier this year, drilling its 800th well. That’s an excellent achievement, but what are your drilling targets over the next couple 
of years?

Our existing development will continue in the coming years. The number of wells to drill will depend on the speed at which we can mature new well pads. This becomes harder over time as we are targeting the more challenging parts of our reservoirs. We hope that recent seismic will help us define those areas. At the moment we are looking to continue with 2 to 3 rigs which translates to 60 – 90 wells per year.

Which drilling contractors are drilling the wells for SPD, and what are the average times taken to drill a well? How does this compare to industry standards?

KCAD and SSK are the two drilling contractors that have been with us since day one. Of course these contractors are supported by many additional service companies for directional drilling, cementing logging and so on. Our world class performance is based on SPD’s strategy of “Russia Plus” combining best practices of Russia with international oil & gas experience.  We are stimulating fair and honest competition between local and international companies looking for constant optimization of our operations and technologies. It results in mutual improvement of overall performance and competitiveness both in Russia and abroad. The average overall time last year was 9.7 days per well with an average depths of 2950 mtrs of and an inclination of 46 deg. This is pretty impressive considering it includes all the delays related to weather, equipment failures and the like. Based on benchmark data that we have and information from our joint venture partners it confirms that we are indeed 
top quartile.

With various contractors drilling wells, how do you ensure drilling optimization across the Salym fields?

Standardisation of our well design in combination with the large number of wells has allowed us to realise significant performance improvements. We have implemented incentive contracts where our drilling contractors and service companies benefit from improvements in performance. Each year these norms are revised to reflect the improvements made. We also have a routine to conduct after action reviews to help understand what went well and what room there is for improvement. These learning’s are shared between the rig teams to allow all to benefit.

We also have an improvement plan with several initiatives in which we trial new concepts and technologies, mostly at one rig at the time. If the concept proves useful we will look to implement on the other rigs.

What would you consider as your greatest achievement in terms of delivering a well at SPD?

Of course there have been a few records in terms of days for a well (4.54 days) or meters drilled in one day (1100 m). The biggest achievement however is that we have demonstrated to be able to consistently drill our wells quickly, cheaply and safely, and that we continue to learn and improve (even after 10 years). At this point in time our three drilling rigs have a combined total of close to 3000 days without a lost time injury. It is this safe delivery of these record wells which is the true achievement.

With the depletion of existing brownfields in Western Siberia, some industry analysts are saying that there is a need to develop tight oil in order to make up declining production. What role do you see tight oil playing in Russia’s oil output future?

The oil industry in Russia does not differ from that in the rest of the world. We are developing a resource and are competing at global level to do this on economic terms. We see that the current reservoirs are maturing and depletion results in less production. It is only natural to look for alternatives to make up for this decline. We venture out to new frontiers (e.g. the Arctic) we try harder in existing fields (enhanced oil recovery), or we bring in new technologies. The Liquid Rich Shales (LSR) has become attractive because of technology breakthrough and the concepts proven in the US. It so happens that much of Siberia has this unconventional play present and the advantage that it can benefit from the existing infrastructure.

Amendments to the Mineral Extraction Tax are key to the economical production on tight oil, what are views on the current tax regime and do you see the RF Government changing the law in time for 2014?

The government is taking a fair share of the oil revenues. Willingness to reduce this component frees up money to the oil companies who can use this to pursue more complex and costly developments. As such the government has an important tool to steer investment levels and development of natural resources of a country.  Changes in tax regime are always subject to lengthy debates and long considerations. Given the amount of money involved this is understandable. I’m sure that changes will be implemented in due course, however whether this will be in 2014 I cannot say. From a countries perspective timing is not the most crucial. For SPD this is a different story as our existing development has matured and we are coming off plateau production. This brings a reduction in drilling activity and we would like to use our current level of expertise and staff to transfer to the new opportunities rather that to have to build this back 
up again.

The Bazhenov is understood to have geological similarities with Bakken formation in North America. Can you see the technology used to economically develop tight oil at Bakken being transferred to Russia?

Our first aim is to prove the concept and to demonstrate that we can significantly improve the productivity from Bazhenov wells by application of multi staged fractured horizontal wells. Once we have proven the concept and understand the productivity enhancements we can see how we can make this an economically viable undertaking. We hope to be able to demonstrate a similar learning curve as we have seen on our conventional wells, reducing time and cost to drill and complete a well in combination with the ability to better target sweet spots. We are hopeful that through the implementation of these technologies in combination with the right tax regime we can make the Bazhenov development economic.

Producing tight oil has two major challenges, not only the fiscal regime but also technology. Do you have any specific technology that you will look to employ on you fields in Salym in the near future?

Our current approach is to leverage what has been used and proven elsewhere rather than to develop our own technologies. This in itself is already a huge undertaking since equipment and resources are not readily available. Everything needs to be planned carefully as one cannot assume that resources are available in case of problems. Efficient transfer or technologies has proven to be a complex matter and it will be dangerous to assume that what has been done somewhere else can be simply copied across. We also need to learn and understand what is specific to our setting and how this impacts the technologies we want to deploy. Following the successful adoption of existing technologies we will push the boundaries by looking for further improvements and alternatives.

Horizontal drilling and hydrofracturing are currently used in Russia more for conventional plays, do you see this as a key technology to transfer to tight and unconventional plays?

Hydrofracturing will be the key enabler for development of the unconventional plays. At the moment this is the only effective technology that will provide sufficient contact area with the reservoir to enable sufficient flow to provide economic wells. There still is much to learn about predicting the benefits of these fracs and positioning them better. From the US we see that a large number of unconventional wells are still uneconomic.

You recently attended the 1st Russian Drilling Contractors roundtable, RDCR, did you identify any possible technologies that you would like to explore further from the event?

A thematic approach certainly helps to focus attendance and have meaningful round table. Areas that might be of interest for future events are for instance development of unconventional plays, enhanced oil recovery projects, waste management and arctic frontiers.

No related posts.

Novoport field

A total of five hydraulic fracturing operations were performed at four wells, including single hydraulic fractures at vertical wells and a multistage hydraulic fracture on a horizontal well.

All of the wells were commissioned after the hydraulic fracturing was completed. The wells’ average daily aggregate flow rate exceeds predicted values by 2.5 times. All of the wells are operating in the primary recovery stage

Furthermore, drilling of the first of three planned wells at the second multi-well pad began at the field in April.

“We are planning to move forward substantially in our study of the geologic structure of Novoport field in 2013. Analysis of the results of the completed hydraulic fracturing operations and drilling which has begun at the second multi-well pad will help us understand Novoport’s production potential. We plan further to apply hydraulic fracturing techniques for the development of Jurassic sediments,” said Denis Kashapov, Executive Director of the Novy Port branch of Gazpromneft Razvitiye.

Source

Related posts:

1. Alexander Dyukov Elected Chairman of Slavneft’s Board of Directors
2. Gazprom Neft boosts hydrocarbon reserves by nearly 10.5% in 2012
3. Petroneft Resources Successful Fracture and Workover Programme

As part of the visit, Rosneft President and Chairman of the Management Board Igor Sechin will hold talks with Venezuelan President Nicolás Maduro and Minister of Energy & Petroleum Rafael Ramírez. The parties will discuss a wide range of issues regarding development of trade and economic cooperation between the countries.

In a two-day visit to Venezuela Sechin also plans to see production facilities of the joint venture PetroMonagas.

The Russian delegation headed by Sechin consists of officials and business representatives, including among others delegations from Eurofinance Mosnarbank, Inter RAO UES, Uralmash NGO Holding, National Oil Consortium, OMZ, Gazprom Neft.

Source

Related posts:

1. Rosneft Head Igor Sechin Completes Working Visit to Venezuela
2. Russian Delegation Led by Rosneft President Igor Sechin Begins Work in Venezuela
3. Rosneft Completes Construction of Social Facilities in Neftekumsk, Stavropol Region

Rosneft’s Tax Department was recognized for Russia’s first advance pricing agreement with tax authorities, implementation of one of the country’s first consolidated group of taxpayers as well as active participation in international projects. Moreover, innovation, complexity and scale of projects and initiatives implemented in the tax sphere in 2012 were taken into consideration to identify winners. Therefore, this award has become the international recognition of high professionalism of Rosneft experts.

It is the ninth consecutive year that Annual European Tax Awards ceremony recognizing the best in-house tax teams and tax advisers has been held. A Russian in-house tax team has been awarded for the first time.

Source

Related posts:

1. Russian Prime Minister Signs Government Order to Transfer 12 Russian Offshore Acreages to Rosneft
2. Rosneft Completes Construction of Social Facilities in Neftekumsk, Stavropol Region
3. Sechin Sees $3-$5 billion Synergies in Rosneft Takeover of TNK-BP

 CGG announced today that Jason, a CGG company specializing in seismic reservoir characterization software and services, has added a powerful new product, 3D Interpretation, to its reservoir characterization software suite. The new software helps asset appraisal and development teams achieve a more thorough and complete picture of their subsurface reservoirs.

Reduced cycle time

The 3D Interpretation application makes it easy for teams to build, refine and complete their structural, stratigraphic and rock property models without leaving the Jason suite. Interpreters can visualize all of their subsurface data including wells, horizons, faults, seismic and rock property volumes. Tight integration with Jason’s deterministic and geostatistical product suite streamlines customers’ quantitative interpretation (QI) efforts, letting them spend more time interpreting and less time moving data around. This promotes faster, smoother workflows and reduces operating costs.

High-quality results

3D Interpretation complements the quantitative analysis and risk reduction techniques clients have come to value from Jason. Interpreters are able to deliver more accurate and reliable results based on all available subsurface information. Within the Jason suite, QI teams can integrate structural, stratigraphic and rock property information into a detailed reservoir model, and then QC their results. This process helps asset teams reduce project risk by continuously improving the quality and reliability of their geologic models.

Improved project economics

High-quality 3D Interpretation, coupled with superior reservoir characterization technology, helps customers mitigate risk during field development planning. With the integrated suite of Jason products, oil companies are better able to select the best well locations. Ultimately, greater understanding and predictability of the subsurface helps customers maximize production while minimizing cost.

Sophie Zurquiyah, Senior Executive Vice President, Geology, Geophysics & Reservoir, CGG, said:  “3D Interpretation is another example of Jason’s commitment to developing software technology that meets paramount client concerns for efficiency, accuracy and usability while extending capability. This new tool leverages Jason’s traditional strength in inversion by adding integrated volume visualization and interpretation capabilities. Its launch also marks further progress in CGG’s strategy to expand its offering in the interpretation market and enable our clients to leverage better reservoir models from their seismic investments.”

Source

Related posts:

1. WesternGeco Commences IsoMetrix Multiclient Seismic Survey in Barents Sea
2. Expanded CGG Fleet Achieves New Industry Records
3. Schlumberger Launches New Wireline Formation Testing Service

 Zhaikmunai L.P. , the oil and gas exploration and production enterprise with assets in north-western Kazakhstan, today announces its financial results for the period from 1 January to 31 March 2013.

HIGHLIGHTS FROM A RECORD FIRST QUARTER (Q1 2013)

OPERATIONAL:

• Record total average daily production of 46,273 boepd, an increase of 25% compared to FY2012 average (36,940 boepd);
• Continued progress with drilling programme and expansion of processing ability;

FINANCIAL:

• Record revenue of US$ 229 million, up 7% compared to Q4 2012 (US$ 214 million);
• Record EBITDA of US$ 153 million, up 30% compared to Q4 2012 (US$ 117 million);
• Strong cash generation, net debt of US$ 365 million at 31 March 2013, down 9% compared to the end of FY 2012 (US$ 401 million);
• Net debt to LTM EBITDA ratio fell below 0.75x;

NEW DEVELOPMENTS:

• Excess cash to be deployed through a GDR Buy-Back Programme of up to US$ 50 million commencing Monday, 20 May 2013.

Kai-Uwe Kessel, Chief Executive Officer of Zhaikmunai, commented:

“Our excellent first quarter results bear witness to the outstanding performance we have achieved operationally. Production levels have surpassed our average target for the year. Our revenue and EBITDA are again at record levels for the quarter and our cash position has never been stronger. While we will continue to make significant ongoing investment in future growth, we are pleased to be able to combine this with a US$ 50 million GDR Buy-Back Programme. We continue to focus on developing Zhaikmunai to deliver the best possible returns to our shareholders and remain confident about our strong prospects in 2013.”

Q1 2013: STRONGEST FINANCIAL RESULTS IN ZHAIKMUNAI’S HISTORY

All figures in US$ million (unless otherwise stated)

¹ Q4 numbers contain audit adjustments made to the full year 2012 and therefore are not a true reflection of the actual Q4 reality, i.e. they are obtained by deducting Q3 2012 results from full-year 2012 results). They are used here solely for comparative purposes in order to show the marginal changes from the third to the fourth quarter in the context of the full production ramp-up which took place in 2012.

Revenue, EBITDA and Net Income

Revenue from sales of crude oil, stabilised condensate, LPG and dry gas stood at US$ 229 million. EBITDA stood at US$ 153 million. The EBITDA margin increased to 66.7% from 54.9% during the previous quarter, reflecting operational leverage from the capacity to handle increased production. Net income was also up for the period at US$ 66 million.

Cost of Sales

Cost of sales declined by US$ 10.7 million, or 12.9%, to US$ 72.4 million compared to US$ 83.1 million for Q4 2012. This decline was driven by a decrease in maintenance expenses of 44.2% from the previous period. The decline in maintenance expenses by US$ 9.7 million to US$ 12.3 million was due to increased GTF costs related to plant shut down in Q4 2012.

Cash

Zhaikmunai ended the first quarter of 2013 with US$ 287.3 million in cash and cash equivalents, which includes US$ 3.8 million of restricted cash and US$ 50.0 million of short-term deposits. This represents a US$ 35.9 million increase, or 14.3%, compared to the end of the 2012 financial year.

Initiation of GDR Buy-Back Programme

As announced on 22 April 2013, Zhaikmunai’s long-term GDR Buy-Back programme of up to US$ 50 million will commence following this Q1 2013 Results release.

OPERATIONS AT AN ALL TIME HIGH

Record Production Drives Revenue and EBITDA Higher

• Total average daily production for Q1 2013 was 46,273 boepd, an increase of approximately 24% compared to Q4 2012 (37,184 boepd);
• The product split for Q1 2013 was as follows:

Drilling activities

• A total of three new wells have been completed in the course of Q1 2013: 2 gas condensate production wells (Wells # 216 and # 410) and 1 crude oil appraisal well (Well # 701);
• Zhaikmunai is on target to achieve its planned drilling programme for 2013 of 15 to 17 wells comprising 9 appraisal wells, 1 exploration well and 5 to 7 production wells. The field currently has 15 oil wells and 12 gas condensate wells in operation.

Expansion of Processing Capacity with Additional Train to Gas Treatment Facility

Design of the third train of Zhaikmunai’s Gas Treatment Facility (GTF) has been completed and has received approval from the Kazakh authorities. Zhaikmunai is currently analyzing and evaluating the bids for the final selection of the main process and auxiliary equipment vendors. The tender for civil and construction works has been launched and results are expected in the course of Q2 2013.

Other News

Zhaikmunai Hosting a Site Visit on Thursday, 27 June 2013

On Thursday, 27 June 2013, Zhaikmunai is hosting a site visit of its Chinarevksoye field for analysts and investors. Details and registration are available on www.zhaikmunai.com.

KASE (Kazakhstan Stock Exchange) Presents Zhaikmunai with Special Award

On March 29 2013, Zhaikmunai was presented with a special award by KASE for its transparency record.

Arnat Abzhanov, Member of the Management Board, JSC Halyk Finance, commented:

“Companies who are listed on more than one stock exchange are faced with different and sometimes conflicting reporting requirements. The KASE award demonstrates that Zhaikmunai manages these challenges efficiently every day and is fully committed to all of its security holders.”

CONFERENCE CALL

Zhaikmunai’s management team will be available for a Q&A session for analysts and investors on the day of the announcement, Tuesday, 21 May 2013 at 14:00 UK time (UTC/GMT+1 hour).

If you would like to participate in this call, please register by email using the following email address: investor_relations@zhaikmunai.com. Please provide your ID details (name, title, company, email address and telephone number) in order to receive dial-in details.

Download the Q1 2013 Financial Statements
http://www.rns-pdf.londonstockexchange.com/rns/0636F_-2013-5-19.pdf

Source

Related posts:

1. Zhaikmunai to Acquire Neighbouring Oil & Gas Fields
2. Zhaikmunai: Proved Reserves Increase by 15.1% to 169.1 mmboe

Athens, Acropolis

Enlarged photo (JPG, 1 MB)

A working meeting between Alexey Miller and Antonis Samaras, Greek Republic Prime Minister took place as part of the visit.

The parties highly praised the Russian-Greek cooperation in the gas sector and expressed their mutual interest to continue the fruitful partnership.

Source

Related posts:

1. Gazprom Boosting Efficiency of Associated Petroleum Gas Utilization
2. Gazprom and IBM discuss cooperation within Informatization Strategy implementation
3. Rosneft and Gazprom Join Forces to Explore and Develop Offshore Fields

– Revenue of MUSD 882.3 (Q1 2012: MUSD 815.1).

– EBITDA of MUSD 150.8 (Q1 2012: MUSD 217.8).

– Profit before tax of MUSD 63.7 (Q1 2012: MUSD 177.4).

– Profit for the period of MUSD 44.1 (Q1 2012: MUSD 139.7).

– Transactions completed to form joint venture with Repsol.

– Launch of gas production in Tomsk region and Khanty-Mansiysk region.

Subsequent events

– Eurobond offering raised MUSD 500 in April 2013.

– In April, oil and gas production increased to 65,465 boepd

Alliance Oil’s consolidated average daily hydrocarbon production increased by 6% quarter-on-quarter with total volumes of 5.0 million barrels of oil equivalent for the quarter, and average daily refining throughput increased by 5% quarter-on-quarter with total volumes of 7.8 million barrels for the quarter.

In the upstream segment, production growth driven by the launch of recently acquired gas assets in the Tomsk region, resulted in higher sales volumes and segment revenue increasing by 7% quarter-on-quarter. Commercial gas production was also launched in the Khanty-Mansiysk region of Russia, marking the first success of the joint venture created with Repsol to grow in the Russian oil and gas.

The refinery capacity utilization remained high in the reporting period partially supported by inventory increases in anticipation of scheduled maintenance works in early April. Downstream revenue decreased by 5% quarter-on-quarter due weaker prices and lower seasonal demand. The Company sold 7.6 million barrels of oil products in the first quarter of 2013 compared to 7.8 million barrels in the previous quarter.

Total debt decreased compared to the previous quarter. In April 2013, in order to optimize the debt portfolio, extend the maturity and decrease interest rates, the Company successfully placed 7-year unsecured Eurobonds for a total amount of MUSD 500 with a 7% annual coupon.

Outlook

Following the commercial launch of gas and gas liquids production in the first quarter, the Company’s total hydrocarbon production recently reached approximately 65,500 barrels of oil equivalent per day, including about 4,500 boepd from the JV with Repsol. This unprecedented level marks another milestone towards the target of double digit production growth.

In the downstream segment, margin improvements are anticipated both in the short-term as market conditions have improved and in the longer-term due to the refinery modernization program. The construction of a new hydroprocessing complex remains on track for launch into test operations in the third quarter of 2013. Refining capacity is planned to reach 100,000 bopd in 2013. The first crude oil supplies to the refinery by the ESPO-pipeline are scheduled for early 2014 with 40,000 bopd capacity, and will be gradually expanded to 100,000 bopd by 2015.

This year Alliance Oil is nearing the end of its extensive investment cycle.

Upon completion of the refinery related projects and further supported by hydrocarbon production growth, the Company expects to significantly improve profitability and to maintain its position of one of the most dynamic and efficient companies in the Russian oil and gas industry.

Source

Related posts:

1. Repsol and Alliance Oil have Commenced Gas Production from the Syskonsyninskoye Field
2. Alliance Oil Interim Report for the Quarter and Nine Months Ended 30 September 2012
3. Repsol and Alliance Oil complete the first phase of their exploration and production joint venture in Russia

The seven metres of net pay in the Jurassic comprises two zones, including an upper interval at vertical depths between 1,106 to 1,116 metres and a lower interval at depths between 1,187 to 1,201 metres.  The lower interval correlates with pays seen in the BCHW-1 well, while the upper zone is a new reservoir not previously encountered.  Reservoir quality in the Jurassic is excellent with porosity ranging from 15 to 27%.

The Triassic section, which extends from vertical depths of 1,210 to 1,380 metres, is largely composed of tight sandstones, all of which appear to be charged with hydrocarbons.  Electric logs indicate five metres of these sands can be considered net pay having porosity of 15% or greater, which is the standard porosity cut-off the Company has used historically for Triassic reservoirs. An additional 33 metres of reservoirs have porosities ranging between 8% and 15%, with a further 60 metres of additional tight sandstone reservoirs with porosities below 8%. The entire 170 metre hydrocarbon-charged Triassic section is a candidate for hydraulic fracture stimulation and therefore will be included in the testing programme for the well.

Production casing has been run in the well and testing will begin as soon as regulatory approvals are received. The Zhanros ZJ30 Rig will now move to drill the SAGW-4 well, an important appraisal well in the Sagiz West Field, located four km south of the nearest producing well in the field.

Source

Related posts:

1. Max Petroleum: Further Success at Zhana Makat ZMA-A22
2. Max Petroleum: Strikes Dust at BSBNE-1
3. Max Petroleum Plc: Discovery at Baichonas West

Rosneft Management Board cancelled standards of corporate governance in effect in TNK-BP and approved uniform policies and standards for the entire structure of Rosneft, which come into force and apply to the united company from this point on.

Rosneft President and Chairman of the Management Board Igor Sechin continued to form a new efficient governance structure for HQ and Company’s subsidiaries by making a number of appointments. HRM decisions have been taken solely to step up requirements for the Company’s management, strengthen their responsibility, efficiency and professionalism.

With this in view, Rosneft faced the following staff changes:

• Rosneft First Vice President Eduard Khudaynatov, who has a solid experience with the Company and high competence in operating activities, will oversee production operations. Sergey Brezitsky, who used to oversee the business area, stepped down;
• Vice President Vlada Rusakova, a recognized top manager in the Russian gas industry, has been appointed to oversee Rosneft gas operations;
• Artem Prigoda, who used to be Sibur Director of the Corporate Reorganization Project, has been appointed Advisor to President of the Company – Director of Planning, Performance Management, Development and Investments in Development and Production Department in the rank of Vice President. Former Director Nikolay Ivanov quit the Company;
• Sergey Mikhailov has been appointed Director of Procurement Department and Central Tender Committee. Former Director Olga Malyshkina quit the Company;
• Marcus Cooper, a former BP top manager with considerable experience in the field, has been appointed Director of Oil and Petroleum Product Trading. His experience will allow Rosneft to develop uniform business approaches both in foreign and domestic markets. Denis Nyrkov, who used to be Director General of RN-Aero and showed his outstanding performance in the jet fuel market, became his first deputy. Former Director Elena Alekseyeva quit the Company;
• Arkady Kuznetsov, a descendant from a family of oilmen, has been appointed Director General of OJSC Orenburgneft;
• Khasan Tatriev, an efficient manager, who used to be Director General of OJSC RN-Ingushneft, a Rosneft subsidiary, has been appointed Director General of OJSC Samotlorneftegaz.

“This way, our Company has completed the principal stage of integration and formed the Company’s governance structure upon acquisition of TNK-BP. Today, given the scale of the corporate development, we introduce a uniform policy and standards based on present-day operating principles in order to enhance production performance, transparency and openness of the Company’s operations and gain maximum returns for Rosneft’s shareholders,” Igor Sechin said.

Source

Related posts:

1. Russian Prime Minister Signs Government Order to Transfer 12 Russian Offshore Acreages to Rosneft
2. Rosneft Completes Construction of Social Facilities in Neftekumsk, Stavropol Region
3. Sechin Sees $3-$5 billion Synergies in Rosneft Takeover of TNK-BP

Traditionally conferences are held in the format of a discussion.

The following speakers will be given the floor at the conference:

- Ivan Grachev, Chairman of the Central Electricity Generating Board, Deputy of the State Duma;

- Victor Sedov, deputy director FAU «Federal center of price formation in

Construction and building materials industry»;

- Viktor Lorents, president of the Russian Union of Oil and Gas Constructors;

- Mikhail Polonsky, president of CJSC «PROMSTROY GROUP»;

- Abdulla Karaev, director of department of logistics support and KS of JSC «Gazprom neft»;

- Pavel Zhelvis, chief representative of the Moscow office of Foster Wheeler

Intercontinental;

- others.

The following companies will participate in the conference:

- Boris Imas, deputy director general on commercial issues LLC «Gazprom Complectatsiya»;

- Alexander Trunov, deputy director on construction LLC «Gazpromneft-Snabzheniye»;

- Denis Maslov, deputy director on construction of the branch «Tyumen» LLC «Gazpromneft-Snabzheniye»;

- Alexey Kada, procurement director on Inventory Supply Chain Management Division R&D JSC «ТNК-ВР Management»;

- Ivan Baranov, head of department on strategy and development Supply Chain Management Division R&D JSC «ТNК-ВР Management»;

- Alexey Konovalenko, head of service procurement department of List 1 Supply Chain Management Division R&D JSC «ТNК-ВР Management»;

- Anatoly Kuzmin, head of service procurement Supply Chain Management Division R&D JSC «ТNК-ВР Management»;

- Alexander Rubtsov, head of the reproduction department of capital Construction and investment projects of JSC «АК «Transneft»;

- Artem Burmashev, deputy head of Department of construction and major repairs JSC «АК «Transnefteproduct»;

- Andrey Shkurat, head of repair management service, modernization and Construction LLC «Gazprom transgaz Moscow»;

- Gennady Kogai, head of internal audit department JSC «Tatneft»;

- Alexey Sorokin, process engineer JSC АNК «Bashneft» «Bashneft-Ufaneftechim»;

- Dinar Talipov, principal manufacturing engineer JSC АNК «Bashneft» «Bashneft-Ufaneftechim»;

- Sergey Gerashchenko, adviser director general on business development JSC «Stroytransgaz»;

- Andrey Shkolnikov, deputy head of Department on strategic development and Investments LLC «Stroygazmontazh»;

- Konstantin Demetriu, deputy director LLC «Stroynovatsiya»;

- Tatyana Kutergina, manager LLC « Stroynovatsiya»;

- Sergey Kostromin, director General JSC PG «Promindustriya»;

- Pavel Tikhonov, deputy director general LLC «Severny European Pipe project»;

- Denis Arteev, deputy head CPD JSC «Sibnefteprovod»;

- Sergey Bylin, managing director JSC «Tomskgazstroy»;

- Yury Kintsler, president LLC «Yamalstroygazdobycha»;

- Vitaly Grodzinsky, director general LLC «Ramos»;

- Eugeny Shemakov, chief engineer LLC «Ramos»;

- Vladimir Kuramin, president SRO NP «Neftegazstroy»;

- Vladimir Chirskov, director general SRO NP «Neftegazstroy»;

- Eugeny Ermolaev, head FAU «Federal center of price formation in construction and building materials industry»;

- Sergey Agaurov, Commercial director JSC «VNIINEFTEMASH»;

- Aleksander Anisimov, Chief Marketing officer JSC «VNIINEFTEMASH»;

- Sergey Lesukhin, Director general LLC «Volga NIPITEC»;

- Dmitry Berkutov, Chief Marketing officer LLC «Zenith-Chimmash»;

- Marat Mingachev, head of department on commerce and advertising LLC « Zenith-Chimmash»;

- Damir Karimullin, director General JSC «КМPО»;

- Leonid Bobylev, deputy Director General on gas and power generating facilities JSC «КМPО»;

- Ramil Khismatullin, director General LLC «ОZNА-Management»;

- Boris Mironchuk, Managing director LLC «ОZNА-Engineering»;

- Roman Gabdulkhakov, Analyst LLC «ОZNА-Мanagement»;

- Aleksander Serpukhov, sales Director LLC «Trubodetail» LLC «ОМК»;

- Igor Tarasov, Senior project manager JSC «ОМК»;

- Maria Burova, Expert on key customers LLC «SIBUR GEOSYNTH»;

- Victor Tepaev, Expert LLC «SIBUR GEOSYNTH»;

- Roman Grokh, Head of marketing Department JSC «ТМК»;

- others.

Program of the conference>>

Take part in the conference>>

Phones: (495) 514-44-68, 514-58-56; fax: (495) 788-72-79, info@n-g-k.ru; www.n-g-k.biz

Related posts:

1. The conference “Supply chain in oil&gas complex” will be held March 14th (NEFTEGAZSNAB-2013)
2. The plan for the “Moscow Annual Oil and Gas Conferences” for 2013
3. December 6the prospects of the Russian suppliers for oil and gas shelf will be discussed in Moscow

Source

No related posts.

More than 120,000 applications from companies of various industry branches and various forms of ownership had been received for participation in the All-Russian contest.

TATNEFT Company had been nominated to the federal contest stage following the decision of the Republican Trilateral Commission for the Regulation of Social and Labor Relations, which had identified 10 organizations among the winners of the republican stage.

At the end of the republican stage the Company had been awarded first place in the nomination “For participation in resolving social problems of territories and development of the corporate philanthropy” and the third place in two categories: “For the development of human resources potential in the organizations of the production sector” and “For the development of social partnership in the production sector organizations”.

The contest has been held annually since 2000, and it allows identifying enterprises, which achieve high results in the solution of social problems, draws public attention to resolving the problems at the level of the organizations, promotes extension and encouragement of good practices in this area and development of social partnership. The event has been held in two stages since 2010: at the regional and federal level. The winners were chosen in 12 nominations this year.

Source

Related posts:

1. Tatneft: Figures Demonstrating Results of Operations in December 2012 and since the Beginning of the Year
2. Tatneft Will Take Part in the “Oil and Gas of Turkmenistan-2012″ Exhibition
3. Tatneft: Efficient Technologies to Enhance Oil Recovery

Alexey Miller

Enlarged photo (JPG, 2 MB)

“Gazprom is a modern high-tech company with a strong scientific and research base, able to develop and implement its own innovative solutions. Aspiring to become a leader in the global energy market, we carry out the most complex projects in the regions with unique environmental and climatic conditions.

These activities require the most cutting-edge technologies as sophisticated as the space ones. With a view to create them, we suggest mobilizing the Russian scientific potential – first of all, that of the Russian Academy of Sciences, and combining it with the knowledge and experience of Gazprom. Along with this, we are highly interested in innovative solutions helpful in mitigating adverse environmental impacts,” said Alexey Miller.

Gas well drilling at Medvezhinskoye field in Yamal-Nenets Autonomous Area

Enlarged photo (JPG, 3 MB)

The meeting participants discussed possible areas of cooperation between Gazprom and the Russian Academy of Sciences. As part of the discussion, a presentation was made with regard to the innovative potential of the Russian Academy of Sciences key developments and their implementation mechanisms.

The meeting paid special attention to innovations in ecology It was noted that Gazprom’s production activities had a direct impact on the environment. Being aware of its high responsibility in the area of environmental and climatic protection, the Company persists in ensuring environmental safety at the level of the highest international standards. The declaration of 2013 to be the Year of Ecology in Gazprom was an important part of these activities.

In this regard, a number of solutions to protect and improve the environment were presented at the meeting. In particular, the discussion addressed a presentation on the prospects for using the natural gas potential in developing hydrogen technologies, inter alia, as a hydrogen source. In this way, the methane-hydrogen mixture use as a fuel for gas turbine units helps to considerably reduce air emissions. Moreover, the hydrogen addition to the NGV fuel makes car vehicles more efficient and eco-friendly.

The meeting participants listened as well to presentations on the energy saving technology for on-site treatment of natural gases and on the laser technology use for dealing with oil blowouts and spills on top of ice.

Summarizing the meeting results, the STC recommended continuing the development of innovative solutions in ecology, primarily, the technologies for natural gas use as a hydrogen source for auxiliary power plants, car vehicles and gas turbine units.

The Council recommended as well that suggestions be prepared on the use of the Russian Academy of Sciences developments for Gazprom’s benefit.

Source

Related posts:

1. Gazprom and Japanese Agency for Natural Resources and Energy address Investment Rationale for Vladivostok-LNG project
2. Gazprom Boosting Efficiency of Associated Petroleum Gas Utilization
3. Alexander Dyukov Elected Chairman of Slavneft’s Board of Directors

Enlarged photo (JPG, 1 MB)

The meeting participants discussed topics of the South Stream gas pipeline offshore section realization. In particular, the parties considered the current activities status and the procedures schedule stipulating the gas pipeline commissioning in the year 2015.

Source

No related posts.

The company’s financial performance in 1Q 2013 compared to 1Q 2012 was negatively affected by a combination of lower crude oil prices and a rise in taxes and natural monopolies’ tariffs. The impact of these factors was partially offset by an increase in hydrocarbon production, refining throughputs and retail sales volumes. Revenue increased by 4.8% Y-o-Y to RUB 291,895 million, adjusted EBITDA decreased by 3.2% Y-o-Y to RUB 76,693 million, profit attributable to Gazprom Neft’s shareholders was down by 18.2% Y-o-Y to RUB 39,567 million.

Hydrocarbon production volumes in 1Q 2013 increased by 3.0% Y-o-Y to 111.76 mmboe (15.21 mmtoe), driven by increased natural gas production at the Cenomanian gas project at the Muravlenkovskoye field, higher associated gas utilisation and the start of production at SeverEnergia’s fields.

Refining throughput increased 1.9% Y-o-Y to 10.36 million tonnes, due to additional throughput opportunities emerging from differences in refinery maintenance schedules. Premium channel sales reached 5.12 million tonnes, average throughput per petrol station increased by 10.1% Y-o-Y to 17.6 tonnes per day.

CAPEX increased by 24% Y-o-Y to RUB 35,599 million driven mainly by investment projects at Yamal and the Orenburg Region, as well as a greater focus on drilling more complex horizontal wells at the Company’s legacy fields.

Key financial data

Key operational data

 Source

No related posts.

OJSC Oil Company Rosneft (Rosneft) and Vietnam Oil and Gas Corporation “PetroVietnam” (PetroVietnam) today signed a Memorandum of Understanding (MOU) in Sochi to strengthen cooperation between the two oil and gas companies.

The MOU – signed by Rosneft President and Chairman of the Management Board Igor Sechin and PetroVietnam Chairman of the Board of Directors Phung Dinh Thuc in the presence of President of Russia Vladimir Putin and Vietnam’s Prime Minister Nguyen Tan Dung – acknowledges both parties’ intention to expand their cooperation in upstream and downstream segments of the oil and gas industry in Vietnam, Russia and third countries.

Commenting on the signing, Igor Sechin said: “We are happy to cooperate with PetroVietnam across different facets of the petroleum business in both Vietnam and Russia, and support both parties’ active work to fulfill our respective objectives for growth”

Source – www.rosneft.com

No related posts.

Source - www.maxpetroleum.co.uk

No related posts.

JAKARTA, INDONESIA—May 15, 2013—GE (NYSE: GE) today announced the largest expansion of its Batam manufacturing facility to date, with the construction of a high bay for a new line of subsea wellhead equipment that will further increase local content.

Making the announcement at the Indonesia Petroleum Association’s (IPA) 37^th Annual Convention, Visal Leng, regional general manager of GE Oil & Gas Asia Pacific, said that the production of vertical subsea trees in Batam is a first for GE in Asia Pacific. The expansion will create up to 30 new jobs when fully operational.

“Our investment underscores our commitment to increase local content of GE technology and solutions in Indonesia,” said Leng. “GE Oil & Gas has invested more than USD$12 million in Batam since 2011 for plant expansion, technology upgrades and the new high bay workshop. We invest not only in physical assets and equipment, but also in building local capability through the transfer of knowledge and expertise from our global sites to the Batam team.”

Employees for the new high bay for vertical subsea trees will be trained according to the standards and practices at GE’s Aberdeen center of excellence. They also will receive additional training addressing localized content and requirements. The construction of the high bay is due for completion in June 2013, with the production of the subsea trees expected to start in November 2013.

“GE is committed to supporting the development of infrastructure in Indonesia, particularly in the oil and gas sector, one of the strongest contributors to our country’s economic growth,” said Handry Satriago, CEO of GE Indonesia. “The expansion of our Batam plant clearly reflects our focus on deepening our country presence here and confidence in the Indonesian economy and growth plans.”

The expansion is part of a suite of solutions GE showcased at the IPA convention and exhibition. Reflecting on the conference theme of “Investing in a Challenging Environment,” Leng added, “One of the challenges of the industry is the global shortage of oil and gas talent, and GE can contribute in this area and help Indonesia develop a strong pool of local capabilities.”

At the exhibition, GE focused on its innovative new solutions to meet the technology challenges of maturing fields, stranded gas as well as deep sea oil deposits that are not easy to extract. In addition to its subsea and artificial lift answers to enhanced oil recovery, GE presented its portfolio of solutions for unconventional resources that included the recently launched LNG In A Box™ system.

The LNG In A Box system is a small-scale plug-and-play, re-deployable liquefied natural gas (LNG) fueling solution based on proven technology. By combining technology, supply chain efficiency and the ability to industrialize at smaller scale, it enables an owner or operator to rapidly deploy an LNG fueling solution at a site in two months.

The system offers customers a more standardized modular fuelling solution covering an LNG production range of 10,000 to 50,000 gallons a day. It expands GE’s existing LNG portfolio and is the first unit available in a 10,000 gallons-a-day capacity that reduces demand-side adoption risks and requires very low CapEx and OpEx commitment.

GE has been in Indonesia since 1940, providing the latest technology and solutions in aviation, transportation, power generation, energy management, oil and gas, health and lighting. GE has a workforce of 800 local employees in its 10 facilities and project locations in Indonesia in addition to its country head office in Jakarta and two factories in Yogjakarta and Batam, and a service center in Bandung.

In February of this year, GE Chairman and CEO Jeff Immelt visited Indonesia and announced GE’s plan to spend USD$300 million in the next five years to support the country’s infrastructure development. This includes the expansion of Batam subsea manufacturing facility, as well as the establishment of GE Learning and Technology Center, a partnership with Perusahaan Listrik Negara (PLN), Garuda Indonesia and Pertamina, to provide a center for leadership and engineering, and the localization of GE applied technology. GE has invested more than USD$1billion in Indonesia to date.

About GE

GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company’s website at www.ge.com.

About GE Oil & Gas

GE Oil & Gas is a world leader in advanced technologies and services with 37,000 employees in more than 100 countries supporting customers across the industry—from extraction to transportation to end use. Making the environment, health and safety, quality and integrity our highest priorities is The Way We Work. Our technologies and services include: surface and subsea drilling and production, monitoring and diagnostics, measurement and controls, large-scale LNG, pipeline compression and inspection, well site and industrial power generation, technologies for the refining and petrochemical industries, and modular CNG and LNG units for transportation sectors. Through our customized service solutions, training programs and technologies, GE Oil & Gas partners with customers to maximize their efficiency, productivity and equipment reliability; develop their next generation workforce; and fully benefit from the megatrends of natural gas, the growth of subsea and hard-to-reach reserves and the revolution in asset health management. Follow GE Oil & Gas on Twitter @GE_OilandGas.

Source – www.ge.com

No related posts.

Located at 2100 Great Southwest Parkway, the Fort Worth site is being established by Houston-based Exterran as the first of multiple such sites to streamline customer field support processes for its North American operations.

“The OSCs are part of an innovative approach designed to modernize and simplify our operations. These innovations will enable Exterran to deliver fast and efficient service and enhance customers’ maintenance record accuracy for compliance with modified NESHAP Subpart ZZZZ requirements,” said Steve Abernathy, Vice President, QHSE and North America Operations. Exterran’s Fort Worth site also serves as the hub for its Barnett Business Unit and houses a large shop specializing in Aftermarket Services, including swing engines and repackaging of customer-owned compression.

“The launch of our Fort Worth OSC demonstrates the leadership role that Exterran is taking to help our customers analyze, prepare for and adapt to the NESHAP requirements that go into effect in October,” said Rob Rice, President, North America. “Our services help customers maintain compliance and allow us to experience even better equipment reliability, performance and run times, which, in turn, gives our customers improved compression services availability.”

In addition to providing NESHAP-compliant compression services, Exterran performs required maintenance and maintains required records, provides emissions-testing services and can assist with obtaining and updating air quality permits. Exterran operates one of the largest fleets of contract compression equipment in the world and is strategically adding technologies, products and services that provide complete solutions to surface production and processing needs.

Source: www.exterran.com

No related posts.

“Studio Manager enables information managers to boost the productivity of geoscientists and engineers—truly impacting the core value generation activities in E&P,” said Tony Bowman, president, Schlumberger Information Solutions. “Unlike traditional tools that support managing data in a database, Studio Manager allows information managers to ensure a more productive experience among Petrel platform users sharing interpretations and related knowledge.”

The Studio environment allows E&P experts to find all relevant data, collaborate with peers, and capture and share best practices in the context of their current Petrel workflow. Innovative indexing technology provides access to both structured and unstructured data in Studio repositories, as well as third-party applications and data sources.

Several oil and gas companies participated in beta testing Studio Manager as a part of the standard commercialization process. Key capabilities tested included managing data quality and database integrity, while at the same time seeing how asset team members are using and sharing technical information. Further feedback focused on the intuitive interface, which supports the ability to simultaneously notify relevant users of data updates.

The Studio environment embeds enterprise technology from Microsoft Lync, SharePoint, Exchange and Office, supported by the industry-standard enterprise database deployed on Oracle or Microsoft SQL Server.

Source: www.slb.com/studiomanager

No related posts.

April preliminary operating results:

Upstream, Boepd

Oil      54,684

Gas      11,059

Production  65,743

Sales    67,025

First quarter 2013 financial results will be disclosed on May 22, 2013. Upstream and downstream production data for May 2013 will be disclosed on June 10, 2013.

Source - www.allianceoilco.com

No related posts.

The largest oil and gas company and a leading Russian truck manufacturer intend to conduct joint research and development in order to build wheeled vehicles with gas-powered engines and develop necessary infrastructure of filling stations and service centers. Besides, they plan to produce and put vehicles, special and farm machinery to compressed natural gas and liquefied natural gas, which will be used as a new motor fuel. The agreement provides for training and professional development of engineer and technical staff, mechanics and drivers in operation, maintenance and repairs of gas-powered vehicles and machinery.

The parties will create a steering group to develop coordinated approaches to implementation of top priority pilot and prospective projects. This agreement will allow the parties to make a considerable contribution to develop the market for this eco-friendly fuel.

Source - www.rosneft.com

No related posts.

The Company is placing the four wells in the Asanketken Field onto trial production and returning the BCHW-1 well in the Baichonas Field to test production, effective immediately. As a result, the Company expects its current production of approximately 2,200 barrels of oil per day (“bopd”) from the Zhana Makat Field to increase by a minimum of 2,000 bopd.

Source, www.maxpetroleum.com

No related posts.

Within the fourth month of the current year, crude output in the Republic of Sakha (Yakutia) reached 584,800 tonnes, a 12% increase from crude output in the region in April 2012.

In April 2013, gas production amounted to about 1.005 bcm.

In-house drilling in April of this year reached 425,000 meters of rock including exploratory drilling exceeding 17,000 meters. Compared to the same period of the previous year, increase in the Company development drilling meterage amounted to about 8% and in exploratory drilling – to 18%.

Source

No related posts.

KazMunaiGas Exploration Production
Q1 2013 Financial Results

JSC KazMunaiGas Exploration Production announces its condensed consolidated interim financial statements for the three months ended March 31, 2013.

Revenues decreased by 2% to 202bn Tenge (US$1,342m)1 compared to the same period of 2012 mainly on lower oil prices partially offset by higher domestic prices. The average price of Brent in the first three months of 2013 was 5% lower than in the same period of 2012, down from US$119 per barrel to US$113 per barrel.
Net loss amounted to 0.7bn Tenge (US$4m) and loss per share – 10 Tenge (US$0.01 per GDR) mainly due to additional impairment charge.
Production expenses amounted to 43bn Tenge (US$284m), which is 36% higher compared to the same period of 2012. A significant part of the production cost increase is due to increased expenses for employee benefits, energy and repairs and maintenance.
Production Highlights
In the first three months of 2013 KMG EP produced 3,002 thousand tonnes of crude oil (247 kbopd), including the Company’s stakes in Kazgermunai (KGM), CCEL and PetroKazakhstan Inc. (PKI) which is 1% less than in the same period of 2012.
Uzenmunaigas JSC (UMG) produced 1,237 thousand tonnes (101 kbopd), about the same as in the first quarter of 2012. Embamunaigas JSC (EMG) produced 691 thousand tonnes (56 kbopd), which is 16 thousand tonnes or 2% more than in the same period of 2012. The total volume of oil produced at UMG and EMG in the first three months of 2013 is 1,927 thousand tonnes (158 kbopd), which is 1% more than in the same period of 2012 and in accordance with production plan.
The Company’s share in the production from KGM, CCEL and PKI for the three months of 2013 amounted to 1,074 thousand tonnes of crude oil (89 kbopd) which is 44 thousand tonnes or 4% less than in the same period of 2012 and in accordance with production plans for these companies.

Crude Oil Sales

In the first three months of 2013 the Company’s export and domestic sales from the UMG and EMG were 1,490 thousand tonnes (122 kbopd) and 505 thousand tonnes (41 kbopd) respectively.
The Company’s share in the sales from KGM, CCEL and PKI was 1,088 thousand tonnes of crude oil (90 kbopd), including 966 thousand tonnes (80 kbopd) or 89% supplied to export markets.
1 Amounts shown in US dollars (“US$” or “$”) have been translated solely for the convenience of the reader at the average rate over the applicable period for information derived from the consolidated statements of income and consolidated statements of cash flows and the end of the period rate for information derived from the consolidated balance sheets (average rates for 1Q13 and 1Q12 was 150.67 and 148.13 Tenge/US$, respectively; period-end rates at March 31, 2013 and December 31, 2012 was 150.84 and 150.74 Tenge/US$, respectively).

Net Profit (Loss) for the Period

Net loss in the first three months of 2013 was 0.7bn Tenge (US$4m), mainly due to additional impairment charge as well as lower revenues, lower income from associates and joint ventures and higher production expenses.

Revenues
The Company’s revenues in the first three months of 2013 decreased by 2% compared to the same period of 2012, and amounted to 202bn Tenge (US$1,342m). This was mainly due to a 5% lower oil price, which was partially offset by higher domestic price and supply volume. The volume of export sales was about the same as in the first quarter of 2012.

Taxes other than on Income
Taxes, other than on income, in the first three months of 2013 were 76bn Tenge (US$506m), which is 1% higher compared to the same period of 2012. The growth is primarily due to 4.4bn Tenge (US$29m) increase in environmental tax as a result of the tax audit for 2010-2011 (the main issue being an excess placement of waste), which was partially offset by decrease in mineral extraction tax and rent tax due to lower oil prices.

Production Expenses
Production expenses in the first three months of 2013 were 43bn Tenge (US$284m), which is 36% higher compared to the same period of 2012 mainly due to increased expenses for employee benefits, energy and repairs and maintenance.
Employee benefits expenses in the first three months of 2013 increased by 22% compared to the same period of 2012 mainly due to an indexation of salary for production personnel by 7% in January 2013, and reclassification of expenses of two companies (UBR and UTTiOS) from administrative to production expenses.
Energy expenses increased by 46% compared to the first quarter of 2012 mainly due to the increase in tariffs for electricity consumption and transportation. Repairs and maintenance expenses increased by 61% mainly due to the increased number of well repair operations from 154 to 268 compared to the first quarter of 2012 in accordance with the production programme.

Selling, General and Administrative Expenses
Selling, general and administrative expenses in the first three months of 2013 were 22bn Tenge (US$146m), which is 12% higher compared to the same period of 2012, mainly due to increase in transportation expenses, fines and penalties, partially offset by decreased expenses on employee benefits due above mentioned reclassification of the expenses from SG&A to production expenses.
The increase in transportation expenses is due to increase of Kaztransoil transportation tariffs in December 2012 by approximately 40%. The increase in fines and penalties is due to the fine accrued for environmental tax in the amount of 1.3 billion Tenge (US$9m) as a result of the tax audit for 2010-2011.

Exploration Expenses
Exploration expenses amounted to 6.6bn Tenge (US$44m) in the first three months of 2013
compared to 1.3bn Tenge (US$9m) in the same period of 2012. The Company recognized dry well expenses in the amount of 6.1bn Tenge (US$41m) related to the exploratory well drilled on the White Bear prospect in North Sea.
Additional Impairment Charge
Management of the Company has updated the formal assessment of the recoverable amount of JSC “Ozenmunaigas”, and made an additional impairment charge of 56bn Tenge (about US$370) in the first three months of 2013. The additional impairment charge relates primarily to the increase in export customs duty that occurred on 12 April 2013.
Taxation
On July 12, 2012 the Tax Committee of the Ministry of Finance of the Republic of Kazakhstan completed the 2006-2008 comprehensive tax audit of the Company. As a result of this tax audit, which commenced in October 2011, the tax authorities estimated additional taxes for the Company of 16.9bn tenge, including 5.8bn tenge of tax, 7.2bn tenge of administrative fines and 4.0bn tenge of late payment interest. The Company is currently appealing to the Tax Committee of the Ministry of Finance. (For more details, please see note 19 of consolidated financial statements).
Ozenmunaigas Environmental Audit
On January 25, 2013 JSC “Ozenmunaigas” received a notification from the Department of Ecology of Mangistau Region to pay the state budget 59.6bn Tenge in fines for environmental damage. The total amount was determined as a result of an inspection that covered the period from 27 August 2011 to 12 November 2012.
JSC “Ozenmunaigas” disagreed with this notification and filed an appeal to the Specialized Interregional Economic Court of Mangistau Region stating that the act was illegal and that calculations were not reliable. The Company believes that it can successfully appeal the results of the inspection and the request for payment for damages to the environment, and therefore no provision has been accrued for this matter as at March 31, 2013.
Cash Flows from Operating Activities
Operating cash flow in the first three months of 2013 was 30bn Tenge (US$200m), which is 55% lower compared to the same period of 2012, mainly due to lower revenue, higher production expenses, higher income tax paid and change in working capital.
Capex
Purchases of property, plant and equipment and intangible assets (as per Cash Flow Statement) in the first three months of 2013 were 37bn Tenge (US$245m), which is 202% higher compared to the same period of 2012.
Cash Distribution to Stockholders
On 18 April, 2013 The Board of Directors of KMG EP has recommended a dividend with regards to 2012 earnings per ordinary and preferred share of KMG EP of 1,619 Tenge (including taxes withheld in accordance with the legislation of Kazakhstan) which is equivalent to about 110 billion
4
tenge2 (approx. US$740 million). This will be voted upon at the AGM.
Cash and Debt
Cash and cash equivalents as at 31 March 2013 amounted to 174bn Tenge (US$1.2bn) compared to 155bn Tenge (US$1.0bn) as at 31 December 2012.
Other financial assets (current and non-current) at 31 March 2013 were 528bn Tenge (US$3.5bn) compared to 552bn Tenge (US$3.7bn) as at 31 December 2012. Other financial assets include the NC KMG Bond and deposits. As at 31 March 2013 the outstanding amount of the Bond was 137bn Tenge (US$0.9bn).
81% of cash and financial assets (including the Bond) as at 31 March 2013 were denominated in foreign currencies and 19% were denominated in Tenge. Finance income accrued on cash and financial assets (including the Bond) in the first three months of 2013 was 5.8bn Tenge (US$39m).
Borrowings as at 31 March 2013 were 7.2bn Tenge (US$47m), compared to 7.3bn Tenge (USD$48m) as at 31 December 2012.
The net cash position3 at 31 March 2013 amounted to 694bn Tenge (US$4.6bn) compared to 699bn Tenge (US$4.6bn) as at 31 December 2012.
Income from associates and joint ventures
In the first three months of 2013 KMG EP’s share of results of associates and joint ventures was 21bn Tenge (US$137m) compared to 26bn Tenge (US$174m) in the same period of 2012. The financial results of associates and joint ventures in the first three months of 2013 were primarily driven by the lower oil price compared to the same period of 2012, lower sales volumes and increased operating expenses.

The condensed consolidated interim financial statements for the three months ended March 31, 2013, the notes thereto, and the operating and financial review for the period is available on the Company’s website (www.kmgep.kz).

No related posts.

Start of CS construction

Enlarged photo (JPG, 2 MB)

The start of the Kazachya CS construction is a significant stage of the Southern Corridor gas transmission system (GTS) project aimed at ensuring gas supply into South Stream as well as gasification of Russia’s central and southern regions.

Pouring first cubic meter of concrete into CS foundation

Enlarged photo (JPG, 3 MB)

The full capacity of the Kazachya CS is 220 MW. Along with gas transmission, it will ensure water and admixtures removal. The CS annual capacity makes up 63 billion cubic meters of gas. Eight gas compressor units of the Kazachya CS will supply gas at a pressure of 11.8 MPa to the Russkaya CS. Then gas will be fed to South Stream.

Horseshoe for happiness!

Enlarged photo (JPG, 2 MB)

Source

No related posts.

The ceremonial meeting devoted to this significant event was held at the “Neftche” Palace of Culture in Almetyevsk (Republic of Tatarstan) on May 15.

The festivity was attended by Farid Mukhametshin, Chairman of the State Council; Shafagat Takhautdinov, General Director of TATNEFT Company; managers of the enterprises of TATNEFT Group of Companies; managers of services, departments, workshops and labor veterans of NGDU “Almetyevneft”.

The highlight of the event was the appearance on the stage of honored oilmen crews with capsules containing precious drops of that same 600-millionth ton of “black gold”.

The Almetyevsk oil producers were addressed with congratulations by Alexander Novak, Minister of Energy of the Russian Federation. He pointed out in his address, that “the petroleum school of Tatarstan and TATNEFT Company have always been and still remain an example of effective management, innovative and dynamic development, as well as a creative, competent and rational approach to the development of the “black gold” deposits.

Farid Mukhametshin, Chairman of the State Council of Tatarstan, also addressed the participants of the meeting. According to the Chairman of the State Council, NGDU “Almetyevneft” has always been a great source of manpower for the oil and gas industry not only in our Republic, but in the country as a whole. True professionals had used to work in the Oil and Gas Production Board since its establishment, who subsequently moved to key positions in various departments: Nikolai Maltsev – Minister of Oil and Gas Industry of the USSR and Agzam Valikhanov – Deputy Federal Minister of Oil and Gas Industry.

Shafagat Takhautdinov, General Director of JSC TATNEFT, congratulated the team of NGDU “Almetyevneft” on the occasion of the significant event. He pointed out the production accomplishments of the Oil and Gas Production Board, having a unique experience, a modern approach to crude oil production and high professionalism. The Company’s CEO also pointed out that the main distinctive feature and style of the NGDU operation were always the powerful engineering school, the ability of working for future results and the power of corporate traditions. Today the Oil and Gas Production Board is a testing ground for introduction and putting into operation of advanced equipment and technologies. New methods of well construction are successfully developed and applied; the Company has gained considerable experience in the hydraulic fracturing technology application. The pilot project for development of hard-to-recover reserves with application of modern automation means is being implemented at Berezovsky area. The Company successfully solves the challenges of enhanced oil recovery, resource conservation, creation of an effective relationship system with service companies and other pressing tasks in crude oil production.

The labor veterans and employees of “Almetyevneft” Oil and Gas Production Board, who had made significant contributions to the development of the oil industry, were given the Russian State, Republican and corporate awards.

Source

No related posts.

The MOU – signed by Rosneft President and Chairman of the Management Board Igor Sechin and PetroVietnam Chairman of the Board of Directors Phung Dinh Thuc in the presence of President of Russia Vladimir Putin and Vietnam’s Prime Minister Nguyen Tan Dung – acknowledges both parties’ intention to expand their cooperation in upstream and downstream segments of the oil and gas industry in Vietnam, Russia and third countries.

Commenting on the signing, Igor Sechin said: “We are happy to cooperate with PetroVietnam across different facets of the petroleum business in both Vietnam and Russia, and support both parties’ active work to fulfil our respective objectives for growth”.

Source

No related posts.

President of Rosneft Igor Sechin and General Director of VOLKSWAGEN Group Rus LLC Marcus Osegowitsch signed an agreement aimed at the development of the compressed natural gas (CNG) market in Russia, as well as the CNG-powered vehicles market. The agreement envisages the development of CNG filling infrastructure, equipment of Rosneft filling stations with facilities to provide CNG sales, as well as bringing Volkswagen, Audi, ŠKODA and VW Commercial CNG-powered vehicles to the market.
The parties also intend to develop service infrastructure for CNG-powered vehicles, supply special equipment to service stations and train personnel.

OJSC Rosneft and OJSC KAMAZ signed an agreement on scientific and technological cooperation to expand use of natural gas as motor fuel.

The largest oil and gas company and a leading Russian truck manufacturer intend to conduct joint research and development in order to build wheeled vehicles with gas-powered engines and develop necessary infrastructure of filling stations and service centers. Besides, they plan to produce and put vehicles, special and farm machinery to compressed natural gas and liquefied natural gas, which will be used as a new motor fuel.

The agreement provides for training and professional development of engineering and technical staff, mechanics and drivers in operation, maintenance and repairs of gas-powered vehicles and machinery.

Rosneft also signed three-party agreements.

President of OJSC Rosneft President Igor Sechin, Governor of Stavropol Territory Valery Zerenkov and Director General of OJSC KAMAZ Sergey Kogogin signed an agreement to implement joint projects to substitute petrol and diesel fuel, which is used by vehicles, with gas engine fuel as motor fuel in Stavropol Territory.

The agreement provides for joint efforts as well as implementation of regional and municipal programs in this area. The parties plan to develop the regional market of gas engine fuel, infrastructure for gas engine fuel sales and maintenance of gas engine vehicles, substitution of a car fleet with gas-powered vehicles and machinery. The parties also plan to conduct field tests of new compressed gas vehicles by motor carriers of the region and supply of vehicles and machinery manufactured by KAMAZ.

In addition, Rosneft, Governor of Voronezh Region Aleksey Gordeyev and Director General of OJSC KAMAZ Sergey Kogogin signed a cooperation agreement for expanded use of gas engine fuel.

President of OJSC Rosneft President Igor Sechin and heads of the Russian regions where Rosneft conducts business signed cooperation agreements for expanded use of gas engine fuel. Such agreements were signed with Governor of Samara Region Nikolay Merkushkin, Governor of Krasnodar Territory Alexander Tkachev.

Besides, Igor Sechin and President of OJSC Russian Railways Vladimir Yakunin signed a memorandum of understanding to develop railway use of gas.

Source

No related posts.

As a number of countries across the world step up their unconventional oil and gas development, Russian President Vladimir Putin has claimed that his country has not fallen behind its peers by adhering to conventional gas production. Putin said in a recently televised question session that Russia held large unconventional gas reserves, in addition to its substantial conventional gas deposits that had yet to be developed. He was adamant that the country remained in touch with the ‘shale gale’ trends in the US and elsewhere. “I don’t think we’ve slept through it. But we need to follow its development very closely,” he said.

Putin’s remarks were made in response to growing concerns in Russia that Gazprom – the world’s largest natural gas producer and Russia’s gas export monopoly – could find itself struggling to maintain its market share as global energy companies accelerate their development of unconventional reserves. In particular, in a report released on April 12, Russia’s Ministry of Economic Development predicted that competition from North American exports of gas produced from shale would force Gazprom to lower its export prices by 2016.

Russia is the world leader in natural gas reserves and second in terms of gas production. Thus far, Gazprom has very successfully concentrated on its traditional gas fields across Western Siberia and the Pacific coast, shipping the resource to Europe through a series of pipelines. However, the global gas market has been undergoing significant changes as the advance of technology has made shale drilling economically viable in North America. In 2009 the US overtook Russia as the world’s leading gas producer as a result of its burgeoning shale gas sector. Concurrently Europe, which depends on Gazprom for around 25% of its gas, has increased its use of cheaper imported coal, pushing down prices and demand for Russian gas.

Upping the ante for Gazprom, the US is now so well supplied with natural gas that it is considering large-scale LNG exports. According to estimates from Goldman Sachs, up to 10% of US output could be sold abroad as LNG by 2016.

Taking up technology

Russian oil companies, faced with annual decline rates of around 2% in their West Siberian home base, have already started to step up the use of unconventional technologies to secure Russia’s position as one of the world’s top crude producers. Producers are starting to unlock conventional resources – both in Western Siberia and at greenfield projects in the east – with the increased use of horizontal drilling and hydraulic fracturing techniques that have come to be associated with the shale boom.

In March, Bloomberg reported that TNK-BP, Russia’s third largest oil producer, would use horizontal drilling and fracking for almost half the wells it would drill in 2013, representing a sixfold increase in two years. Rosneft, Lukoil and Gazprom Neft had similar plans, according to Bloomberg.

In the gas sector, Russia may hold up to 680 trillion cubic metres of unconventional resources, according to the director of the gas resources centre at Gazprom’s VNIIGAZ research unit, Viktor Skorobogatov. He said in a December interview published in the company’s corporate magazine that this figure included gas from shale, sandstone and coal beds.

Rosneft, Russia’s largest oil-producing company, is now considering drilling for unconventional gas. Rosneft’s vice president for gas strategy, Vlada Rusakova, said in London on April 23 that the company was intending to more than double its gas output by 2020, and similarly increase its share of the domestic market to 20%. She said that unconventional gas would form part of this effort if it was economically viable.

Live questioning

Putin previously urged Russia’s energy companies to “rise to the challenge” of shale in April 2012.

His recent remarks on the topic were in response to questions from a Channel One journalist, Mikhail Leontyev, who has produced a scathing and widely viewed documentary covering Gazprom’s position regarding unconventional gas. Leontyev asked Putin whether the company and the country had “slept through” the global shale revolution.

Putin replied: “It’s a hard question, whether we’ve slept through it or not. There’s no answer yet because gas extracted from shale costs several times more than gas recovered by traditional means. We’ve still got enough gas bubbles to produce it by traditional means.”

Putin also touched on the environmental hazards associated with shale. “Shale gas and shale oil are produced at huge – and I want to stress huge – environment-related cost. A lot of people who live where shale gas is produced get black slurry coming out of their taps and this technology needs major refinement at the very least,” he said on the TV show. Nevertheless “this does not mean we are turning our back on shale gas – international experts say Russia has big prospects,” he added.

Worries that Russia will be by-passed by, and lose out from, the shale gas revolution have regularly been dismissed by Gazprom’s CEO, Alexei Miller, who underlined in 2010 that he wanted to smash “myths” about “shale fever”. While Gazprom is undoubtedly monitoring global developments, its executives have subsequently argued on several occasions that production of shale gas lacks commercial feasibility.

A Gazprom board member, Igor Yusufov, said recently that the company’s 28 trillion cubic metres of booked gas reserves remained sufficient to meet its domestic and export obligations for “decades”. In an interview with Vesti FM radio, Yusufov said that shale gas was “a trendy topic” but was still a loss-making business.

Medium-term competition

However, the Ministry of Economic Development report – which outlined scenarios for Russian socio-economic development over a three-year period – projected that rising competition on the global gas market between Russia, the US and countries in the Middle East would have a significant medium-term impact on Russia’s energy industry. Competition to supply Asia would be the critical factor, the Ministry said.

Gazprom’s current export prices to “far abroad” markets outside the former Soviet Union are “inadequate”, said the report, predicting that the gradual introduction of cheap US gas would further increase price pressures on the company. Various disputes over Russian gas supply contracts have already prompted members of the European Union (EU) to pursue energy diversification strategies. According to the Ministry of Economic Development’s outlook, prices for Russian gas in Europe will gradually decline to US$329 per 1,000 cubic metres by 2016, falling by around US$70 from the current average of US$399.9 per 1,000 cubic metres.

Short-term prospects are better, said the report. The ministry expects average gas prices in Gazprom’s export markets to reach a peak of US$411 per 1,000 cubic metres by 2014. However, the ministry is forecasting that from 2015 the cost of producing unconventional gas in the US and elsewhere will decline and that output volumes will rise. As a result, the Russian company would have to compromise on its pricing schemes in order to remain competitive, the report said.

With Russia only just starting out on the path to using unconventional production techniques, the speed with which it will develop the sector is difficult to predict. To ensure that it does not lag behind the rest of the world, Russia can be expected to step up the pursuit of tight oil and shale resource development in the coming years, but economic imperatives will dictate the pace of progress.

Source, www.newsbase.com

No related posts.

The Positive Outlook reflects our expectation that over the medium term the company will maintain stable brownfield production levels and strong credit metrics for a ’BB’ rated company, ie, funds from operations (FFO) gross leverage below 2x and FFO interest coverage of above 8x. It also reflects that its Trebs and Titov (T&T) greenfield project is on track to produce its first oil later this year. Bashneft is a second-tier Russian integrated oil company with 2012 upstream production of 308 thousand barrels of oil equivalent per day (mbbl/d) and refinery throughput of 415mbbl/d.

Key rating drivers

Stable Brownfields Production

In 2012, Bashneft’s crude production was up 2% yoy to 308 mbbl/d, which contrasts well with that of some other Russian oil companies such as OAO LUKOIL (BBB-/Stable) that reported a 1% decline in hydrocarbon production in that year. We recognise Bashneft’s efforts in increasing its brownfield production but believe that the company has limited headroom to further increase oil output in Bashkiria, its historical stronghold.

T&T Improves Upstream Profile

Bringing the T&T oilfields on-stream, in a joint venture (JV) with LUKOIL, which has a 25% stake, is important for improving Bashneft’s upstream profile and bringing it up to match its historically more sizable downstream operations. The company expects the JV to produce its first oil in H213 and to achieve peak production of as much as 95mbbl/d by 2018–2019. However, the free cash flow generated by the JV may not be fully available to service Bashneft’s debt as Bashneft will have to coordinate the JV’s dividend and capex policy with LUKOIL.

Competitive Reserves and Costs

Bashneft’s proved oil reserves of 2,007 million barrels of oil at end-2012 imply an 18-year reserve life, in line with that of Russian peers. In 2012, its production costs were manageable at USD6.6/bbl, below that of most international peers but above that of the Russian majors, due to smaller, more mature oilfields compared with those of OJSC OC Rosneft (BBB/RWN) or LUKOIL. Fitch expects that Bashneft’s operational metrics will remain sound in the medium term.

Strong Downstream and Retail

Bashneft is the fourth-largest refiner in Russia; its three refineries have 480mbbl/d total primary capacity and Nelson index of 8.55. In 2012, refining and marketing contributed around 30% to the company’s EBITDA (based on IFRS accounts). The company’s EBITDA to barrel of oil produced of USD28/bbl in 2012 is one of the highest among Russian peers, partially due to downstream being significantly higher than upstream in size — by 34% by volume in 2012, unlike most other Russian majors. Planned further upgrades of its refineries should improve Bashneft’s refining complexity, increase light product yield and help it maintain solid refining margins.

Conservative Leverage to Remain

At end-2012 Bashneft’s FFO net adjusted leverage was 1.3x, up from 1.0x in 2011, and its FFO coverage improved to 8.4x in 2012 from 6.4x in 2011. Based on the agency’s Brent price deck of USD100/bbl in 2013, USD92/bbl in 2014 and USD85/bbl in 2015, we expect that Bashneft’s gross leverage will remain below 2x in 2013–2016 and its coverage be above 8.0x.

Standalone Uncapped Ratings

Fitch rates Bashneft on a standalone basis, and assesses its linkage with Sistema Joint Stock Financial Corp (Sistema; ‘BB-’/Stable), its majority shareholder as moderate. We note that Bashneft remains a key asset for Sistema along with OJSC Mobile TeleSystems (MTS, BB+/Stable). In 2012, Bashneft contributed around 35% to Sistema’s EBITDA, and Sistema’s ability to service its debt may depend on dividends it receives from Bashneft.

Bashneft has material related party transactions, eg during 2012 it made a number of deposits with a total amount of RUB24.8bn of cash (or 7.5% of its net revenue) with the Sistema-owned OJSC MTS Bank (B+/Stable). However, by the end of the year most of these funds had been repaid, and Bashneft’s debit balance with the bank was RUB5.1bn. While Fitch does not currently constrain Bashneft’s ratings (which can be the case if related party transactions intensify and lead to material cash outflow), Bashneft cannot be rated more than two notches higher than Sistema under the agency’s criteria.

Rating sensitivities

Positive: Successful production launch and development at T&T in 2013–2015 coupled with solid operational and credit metrics, eg, stable brownfield production and refining volumes and FFO gross adjusted leverage below 2.5x and FFO interest cover above 8x on a sustained basis, may lead to a positive rating action.

Negative: Bashneft’s failure to maintain crude production or sustained deterioration of its credit metrics, including FFO gross adjusted leverage above 2.5x and FFO interest cover below 8x on a sustained basis owing to higher capex and dividends may lead to a negative rating action.

Liquidity and debt structure

Acceptable Liquidity

At end-2012, Bashneft had cash of RUB20.1bn and RUB33bn in committed credit facilities, which covered its short-termdebt of RUB32bn. In February 2013, Bashneft issued RUB30bn 10-year bonds (with a half having a put option in 2018 and another half in 2020) and repaid most of the debt falling due in 2013. Fitch believes that Bashneft has good access to the domestic capital markets and would refinance its upcoming maturities if needed.

Balanced Debt Portfolio

At end-2012, Bashneft’s balance sheet debt of RUB110.2bn was made up of bank loans (RUB77.4bn), domestic bonds (RUB25.2bn) and pre-export finance facilities (RUB7.6bn). As most of its borrowings are RUB-denominated, its effective interest rate remained relatively high at 8.4%. This may reduce as Bashneft intends to increase the share of USD-denominated borrowings in its portfolio.

List of rating actions

Long-Term IDR: affirmed at ’BB’, Outlook revised to Positive from Stable
Short-Term IDR: affirmed at ’B’
Local currency Long-Term IDR: affirmed at ’BB’, Outlook revised to Positive from Stable
Local currency Short-Term IDR: affirmed at ’B’
National Long-Term Rating: affirmed at ’AA-(rus)’, Outlook revised to Positive from Stable
Senior unsecured rating: affirmed at ’BB’

Source

No related posts.

The amount of 2,144,224 tons of crude oil was produced at JSC TATNEFT in April (100.8 percent versus a similar period of the previous year) with the above-the-plan production in the amount of 56,304 tons (102.7 percent). 8,568,138 tons of crude oil were produced during four months with the above-the-plan production amounting to 216,638 tons (102.6 percent). 8,416,171 tons of oil were delivered with the above-the-plan delivery amounting to 227,401 tons.

New Drilling

The new drilling penetration for four months of 2013 amounted to 182 thousand meters (215.9 thousand meters in 2012). Of this amount 140.1 thousand meters (159.2 thousand meters in 2012) were penetrated for JSC TATNEFT, including production drilling in the amount of 138.9 thousand meters and exploratory drilling amounting to 1.2 thousand meters. 15.4 thousand meters (17.3 thousand meters in 2012) were penetrated for the subsidiaries of JSC TATNEFT, including production drilling in the amount of 14.7 thousand meters and exploratory drilling in the amount of 0.7 thousand meters.

112 wells (113 wells in 2012) were constructed and delivered to the customers with 79 wells (76 wells in 2012) delivered to JSC TATNEFT, including 77 wells of production drilling and 2 wells of exploratory drilling. 13 wells were delivered to the subsidiaries of JSC TATNEFT (8 wells in 2012) including 9 wells of production drilling and 4 wells of exploratory drilling.

Active Well Stock Drilling

The penetration of sidetracking and horizontal wellbores during four months of 2013 amounted to 16.4 thousand meters (12.3 thousand meters in 2012). 8.1 thousand meters (6.4 thousand meters in 2012) were drilled for JSC TATNEFT.

30 wells (24 wells in 2012) were delivered to the customers. Of this amount 20 wells (16 wells in 2012) were delivered to JSC TATNEFT.

35 drilling crews have been performing well drilling operations since the beginning of 2013; 12 drilling crews are engaged in drilling lateral and lateral horizontal wellbores. One drilling crew performs drilling to the bituminous deposits of Ashalchinskoye field for NGDU “Nurlatneft”. The penetration per crew during four months of 2013 amounted to 5,076 m, while in 2012 the penetration per crew amounted to 5,466.7 m. 21.2 thousand meters were penetrated outside the Republic of Tatarstan.

Repair of Wells

In April 2013 remedial servicing operations were performed in 665 wells (632 wells in April of 2012) with a number of wells serviced during four months amounting to 2,737 (2,751 wells during four months of 2012).

24 wells were repaired outside the Republic of Tatarstan, including 21 wells for OOO “Tatneft-Samara”, 2 wells for OOO “Tatneft-Severny” and 1 well for JSC “Ilekneft” (17 wells were repaired during four months of 2012 with 16 wells repaired for OOO “Tatneft-Samara” and 1 well for JSC “Ilekneft”).

The workover operations were performed in 813 wells during four months of the current year (195 wells in April), including production string sealing performed in 88 wells, shutting-off individual layers and recompletion in other intervals were performed in 57 wells, transfer of wells into different categories and wells completion for injection in 68 wells, liquidation of downhole complications and cleaning of production casing and bottomhole in 51 wells, installation of isolating packers and dual completion systems in 53 wells and physical liquidation in 6 wells and re-liquidation in 2 wells.

199 wells were worked over with application of coil tubing (46 wells in April), including 39 wells worked over through the annulus.

Formation hydrofracking operations were performed in 187 wells (53 wells in April) (126 wells during four months of 2012). The cumulative incremental crude oil production amounted to 6 million 598 thousand tons.

Two workover crews drilled and completed 9 small diameter wells for JSC TATNEFT during four months of 2013.

Works on oil recovery enhancement were performed in 753 wells (176 wells in April), including chemical methods applied in 358 wells (70 wells in April).

The incremental crude oil production resulting from application of crude oil recovery enhancement methods amounted to 1,953 thousand tons (1,887 thousand tons during 4 months of 2012) with application of chemical methods accounting for 820 thousand tons (858 thousand tons during 4 months of 2012).

Bottomhole area treatment operations with application of JSC TATNEFT’s technologies were performed in 1,056 wells during four months of 2013.

Production Performance of the JSC TANECO

Scheduled major repairs were performed at the TANECO Refining and Petrochemical Plants Complex from April 11 to 30, 2013. Because of the abovementioned repairs 213.0 thousand tons of crude oil were processed during ten days of the refinery operation with the yield of the oil products in the amount of 211.7 thousand tons.

Source

No related posts.

Traditionally conferences are held in the format of a discussion.

The following speakers will be given the floor at the conference:

- Grachev Ivan Dmitrievitch, Chairman of the Central Electricity Generating Board, Deputy of the State Duma;

- Lorents Viktor Yakovlevitch, president of the Russian Union of Oil and Gas Constructors;

- Polonsky Mikhail Markovitch, president of CJSC «PROMSTROY GROUP»;

- Karaev Abdulla Eldarovitch, director of department of logistics support and KS of JSC «Gazprom neft»;

- Others.

Program of the conference>>

Take part in the conference>>

Phones: (495) 514-44-68, 514-58-56; fax: (495) 788-72-79, info@n-g-k.ru; www.n-g-k.biz

No related posts.

With construction underway on the first ever Oblique Icebreaker, research specialist Aker Arctic Technology  has unveiled a new version of the unique vessel type that will bring ice management and pollution control in thick first year ice to a new level.

The first ARC 100  is due delivery to the Russian Ministry of Transport in early 2014, after a collaborative build involving Kaliningrad’s OJSC Yantar and Helsinki’s Arctech yards. The resulting newbuilding is a breakthrough in asymmetric three-thruster conceptual design, which will bring new capability in terminal operations, ice management and oil spill response in freezing seas.

The 76m long vessel, with her oblique ice-breaking action is a game changer in year-round oil spill response. Additionally, a single Oblique Icebreaker cuts channels through ice for cargo ships to follow as wide as two equivalent conventional icebreakers moving ahead side by side.

Aker Arctic has followed up with a “Heavy Duty” ARC 100 HD version of the design – a 98m long and 26m across the beam vessel. The vessel will draw on 24,000 kW of engine power and 19,500 kW of propulsion power to offer 190 tonnes of bollard pull in open water. This is 2.5 x the pull offered by the ARC 100.

Planned to be classed by the Russian Maritime Register of Shipping as an Icebreaker 7, the design is based on extensive model tests at Aker Arctic, Helsinki. Tests demonstrated that the ARC 100 HD will be able to break through 1.5m thick ice when moving ahead and astern at 5 knots (2 knots through 2m thick ice). In the oblique mode, it will be able to cut a 50m wide channel through 1.5m thick ice. In broken ice, its vertical side will push ice pieces and its inclined side break ice floats.

As well as increased size, power and manoeuvrability, the ARC 100 HD adds new ice management and oil spill response functionality. Its dynamic positioning capability will mean it can ‘spin on the spot’ to widen channels. It will also be able to assist during ice field direction changes – effectively cutting ice alongside the cargo vessel exposed to unfavourable ice flows.

Aker Arctic has incorporated specific oil recovery measures. As with the ARC100 design, instead of the vulnerable rubber arm sometimes seen in oil spill response operations, the ARC 100 HD’s vertical hull side itself will act as a sweep arm up to 60m across in heavy waves. The vessel will also feature a skimmer system, including a side door, effective in-built brush skimmers/collector tanks for oil separation, recovered oil transfer pumps, and a discharge pump.

“This project is a significant milestone for icebreaker expertise, as it shows the way design and construction efforts are keeping pace with continuing demand for harder to recover energy sources”, says Mikko Niini, Managing Director of Aker Arctic Technology Inc. “With the awarding of drilling permits in the Arctic subject to increasing scrutiny, this is another example of Aker Arctic Technology’s commitment to meeting the challenges set by nature.”

Source: www.akerarctic.fi

No related posts.

Background

Roxi has three wells at South Yelemes.  Well 54 is a Soviet era well that was re-entered in 2010 and Wells 805 and 806 were drilled in 2010. Testing of these wells was delayed pending changing farm-in partners.

Following the $40 million equity commitment secured in January 2013 Roxi decided to test these wells. On 18 February 2013, Well 54 produced at a daily rate of 219 bopd with a 2mm choke. On 14 February 2013, Well 805 produced at a daily rate of 120 bopd using a  sucker rod pump.

Well 806

As previously announced Well 806 is being tested at three different intervals. The first level between 2022 and 2032 metres was tested for a period of 6 days during which the natural flow rate averaged some 90 bopd.

Testing has now moved to the second interval between 1998 and 2015 metres where the well has been perforated and is currently being swabbed.  It is planned that after several days of continuous testing there the third level between 1985 and 1994 metres will be similarly tested.

Once it is clear which interval is the most promising, Roxi plans to conduct a full 90-day test at the chosen interval.

As the test results are interpreted, Roxi will update the market accordingly in due course.

Comments

Clive Carver, Chairman commented:

“We are delighted that the first interval tested has flowed naturally and at commercial levels.  We look forward to similar success at the other levels.”

Source: www.roxipetroleum.com

No related posts.

Following consultation with the drilling contractors and sponsors that attended the event this year, the RDCR 2014 will be run over 2 days and will include an expanded program of technology areas. Power Generation, Solids Control and Inspection & Maintenance are a few of the areas that will be added to the existing topics of Rigs and Equipment, Drill Pipe, Bits and Hardbanding.

You Spoke, We Listened

Doug Robson, Group Sales Director, commented “Our ambition for the RDCR is for it to become Russia’s premier drilling event, and this can only be achieved by close collaboration between ourselves and our drilling contractor partners, sponsors and delegates alike. Due to us reaching the venue capacity and the time limitations of a one day event, we had a number of disappointed companies and delegates this year who were unable to attend. We have gained invaluable experience during the process of organizing the 1st RDCR, and indeed have collated key feedback from the majority of people who attended the event. In response to this, we have expanded the program to run over 2 days and will be changing the format slightly to allow more interaction between the drilling contractors, technology vendors and the audience.”

Early Booking Recommended

This year’s event was sold out within 3 months of being announced, so early sponsorship booking and delegate registration is highly recommended.

For further information please contact paul.seed@rogtecmagazine.com or visit www.rdcr.net

No related posts.

Bely Island. Photo by Arctica-Info news agency

Enlarged photo (JPG, 1 MB)

The expedition is aimed at clearing the Island from ramshackle structures, derelict equipment, fuel tanks and other industrial wastes. The participants of the environmental campaign prepare the garbage for transportation to the mainland for further disposal.

Gazprom will take part in financing the summer (main) phase of the project from July 1 to September 11. In particular, the Company will ship tractors, earth movers and other necessary equipment to the Bely Island and back.

Residents of the Yamal-Nenets Autonomous Area, the Republics of Bashkortostan, Tatarstan, and Tyva; the Tyumen, Kurgan, Chelyabinsk Regions and Germany applied for participation in the expedition.

Source

No related posts.

The vessels are operated by Rosnefteflot, the Company’s subsidiary that developed the project and supported vessels’ manufacturing.

The RN Askold and RN Posiet carry unique equipment. These versatile vessels are capable of setting booms, absorbing oily water from the surface, transporting cargo, and mooring. Such vessels will significantly increase the environmental safety of Rosneft terminals in the Far East.

Rosneft is the first Russian customer of civil ships that are fully built by a domestic company of the Far East Federal District. The shipbuilders gained new jobs along with valuable experience necessary for the construction of large offshore facilities.

Source

No related posts.

Source

No related posts.

The fabrication facility is located in the Salt Springs Industrial Park and is expected to employ more than 100 workers. On hand for the celebration were more than 60 new Exterran employees from the local area already on the job.

An international leader in oil and natural gas products and services, Exterran is expanding its manufacturing into the Northeast United States to meet growing client demand.

“Our customers are actively participating in the development and production of oil and gas in this region, including the Marcellus and Utica shale plays, making this a natural geographic fit for us,” said Exterran President and CEO Brad Childers. “We chose the Youngstown area to ensure the rapid, efficient delivery of quality products to our clients working in the region and because of the outstanding quality of the local workforce here. The Youngstown facility will allow Exterran to meet existing demand and will position us to quickly respond to our valued clients’ future needs.”

The new facility is dedicated to the fabrication of production equipment used to treat or otherwise process natural gas and oil after it is extracted from the ground, such as separation, dehydration, natural gas conditioning, oil treating and conditioning, filtration and air emissions control. The facility’s streamlined lean manufacturing process shortens lead times, increases manufacturing output and produces high-quality products.

“We are excited by the opportunities and long-term potential we see here,” said Childers. “The equipment we produce at this facility is critical to oil and gas production in the northeastern United States, including Ohio, Pennsylvania and West Virginia.”

Childers added, “We greatly appreciate the support we have received from the community, including the State of Ohio, City of Youngstown, JobsOhio, the Youngstown/Warren Regional Chamber and Team NEO.”

Over the past year, the Mahoning-Columbiana Training Association (MCTA) / Ohio One Stop has served as the single point for recruiting, screening, referral and placement for new employees. Additionally, Exterran has worked closely with local technical schools to meet its needs for skilled welders.

Global Leader

Exterran, a global market leader and a publicly traded $2.8 billion company, has delivered countless project successes across the globe for more than 50 years. “We serve customers across the energy spectrum, from producers to transporters to processors to storage owners,” Childers said. “We offer a legacy of proven experience worldwide, unmatched technical expertise and unyielding commitment to service.”

“Exterran is an important addition to Ohio’s oil and gas industry supply chain. Through teamwork at the local, regional, and state levels, Exterran committed to building in Ohio and creating jobs, all of which will further strengthen the state’s manufacturing base,” said John Minor, JobsOhio President and Chief Investment Officer.

Tom Humphries, President & CEO of the Regional Chamber, thanked Exterran for its decision to locate a new manufacturing facility in Youngstown and its creation of more than 100 jobs in the Mahoning Valley. “It was our pleasure to work with Exterran since June 2011 to locate a site that best fits their needs while making them aware of every incentive program and opportunity our community and state has to offer. We love having them in our community and we are proud to have such a major manufacturer in our area.”

“This new facility is another example of what we can accomplish as a region by working together to create an environment where businesses can succeed,” said Tom Waltermire, Chief Executive Officer of Team NEO. “It’s an exciting time for our region as we emerge as an ideal location for shale-related businesses.”

Source: www.exterran.com

No related posts.

The Board approved the following agenda for the annual general meeting of shareholders:

• Approval of the Company’s annual report;
• Approval of the Company’s annual financial (accounting) statements, including profit and loss reports (profit and loss statements);
• Approval of the distribution of the Company’s profit for the year 2012;
• Amount, terms and form of dividend payout for the year 2012;
• Remuneration and compensation for expenses for members of the Company’s Board of Directors;
• Election of members of the Board of Directors of the Company;
• Election of members of the Internal Audit Commission of the Company;
• Approval of the auditor of the Company;
• Amendments and supplements to the Company’s Charter;
• Approval of the Regulations on the General Meeting of Shareholders of the Company as redrafted;
• Approval of related party transactions.

The Board preliminarily approved the Company’s 2012 annual report and recommended that the annual general shareholders meeting adopts a resolution to pay dividends of 8.05 rubles per ordinary share which constitutes 25% of the Company’s IFRS net profit. A total amount of 85.3 bln rubles will be spent on dividends.

The Board recommended appointing Ernst and Young LLC as an auditor for the annual RAS and IFRS financial statements for the year 2013 and determined the cost of services.

Furthermore, the BOD determined the list of information (materials) to be provided to Rosneft shareholders in preparation for the annual shareholders meeting as well as how this information will be delivered. It also approved the form and text of voting ballots and determined who will be invited to attend the meeting.

The Board of Directors also resolved to convene an extraordinary general meeting of Rosneft shareholders and hold it by absentee vote (persons eligible to vote cast their votes on agenda items by voting ballots) on June 18, 2013. The EGM will consider only one agenda item: the approval of related interested-party transactions as part of the joint projects implementation with ExxonMobil for exploration and development of hydrocarbons in the offshore areas of the Black and Kara seas. May 6, 2013 (close of business) is set as a record date for the EGM.

The Board determined the list of information (materials) to be provided to Rosneft shareholders in preparation for the extraordinary general meeting of shareholders as well as how this information will be delivered. It also approved the form and text of voting ballots.

Source

No related posts.

Notice of Ordinary General Meeting 2013: English and Norwegian
Attendance and Proxy Form 2013: English | Norwegian

To register and send your proxy electronically through VPS Investor Services click here.
A pin code and reference number will be needed to complete the proxy electronically.

Company summary

TGS-NOPEC Geophysical Company (TGS) provides multi-client geoscience data to oil and gas Exploration and Production companies worldwide.  In addition to extensive global geophysical and geological data libraries that include multi-client seismic data, magnetic and gravity data, digital well logs, production data and directional surveys, TGS also offers advanced processing and imaging services, interpretation products, permanent reservoir monitoring and data integration solutions.

For more information visit TGS online at www.tgs.com.

No related posts.

As at December 31, 2012 the outstanding principal and accrued interest of the Bonds was 134bn tenge (US$892m).

NC KMG’s decision follows the successful issue of US$ 3 billion NC KMG Eurobonds placed in April 2013.

Source: kmgep.kz

No related posts.

GE Oil & Gas’ (NYSE: GE) Pressure Control business today announced it is adding modular frac manifolds to its fracturing services portfolio. Unveiled at the 2013 Offshore Technology Conference (OTC), the new product expands GE’s support of operators in the unconventional market, including shale gas.

GE’s modular frac manifold is a skid-mounted assembly designed to safely allow simultaneous frac operations on multiple well pads, resulting in time savings. Each self-contained unit consists of a customized array of actuated valves, blocks and frac head outlets and is engineered to safely isolate each well during stimulation. Multiple manifolds can be installed side by side to accommodate each customer’s specific well site requirements.

“Unconventional gas and oil production is a rapidly expanding global industry and is a strategic imperative for GE Oil & Gas. With the introduction of modular frac manifolds, we are further demonstrating our commitment to this industry sector by providing the right technology and business model to help customers optimize their operations,” said Ian Milne, president of GE Oil & Gas’s Pressure Control business.

The new product’s modular design allows units to be shipped to and from well sites with GE crane trucks, which reduces freight costs by eliminating the need for “wide load” permitting. A unique hydraulic jacking system moves manifold units together to assembly, enabling quicker and safer installation.

Other key benefits include:

• The hand wheel is ergonomically designed at stand level within the safety zone to minimize restrictive movements.
• Unit-connecting spools with a rotating flange provide adjustability to overcome minor alignment issues.
• A double-acting hydraulic actuator with manual override ensures proper flow control and shut off even if the hydraulic system has been interrupted.
• Self-contained units act as barriers to hold fluids and assist in preventing environmental issues.

“Although frac manifolds are not new to the unconventional sector, we feel GE’s Modular Frac Manifold offers unique customer benefits. We currently have operator commitments to utilize this technology in the field,” said Milne.

The new modular frac manifold is the latest addition to GE’s wide portfolio of products for the unconventional resources market, which encompasses nearly 40 technologies from across separate GE business units. They include submersible and surface pumps, pressure control systems, compressors, drilling measurement tools, meters, pipeline solutions, sensors, gas engines for on-site power generation, motors, valves and water filtration technologies.

Source: www.ge.com

No related posts.

GE Oil & Gas (NYSE: GE) is launching its next-generation SeaONYX* blowout preventer (BOP) surface control system and operator interface at the 2013 Offshore Technology Conference (OTC). Designed for high-speed, reliable performance in the demanding deepwater drilling environment, the new system incorporates GE’s Mark* Vle hardware and Proficy* software tools, which have been proven in a wide range of power generation applications worldwide.

Blowout preventers are critical pieces of subsea equipment that are used to close oil and gas wells in an emergency. Controlling the subsea equipment are dual redundant electronic control systems that typically are custom designs using components from multiple vendors. By using GE’s Mark VIe control components, the SeaONYX* BOP control system uses an industry accepted configuration that has been installed in more than 2,000 thermal, wind, hydro and nuclear facilities with more than 400 additional deployments every year. GE’s Mark Vle technology provides a large support network for the SeaONYX system’s hardware and software. A key feature of the new SeaONYX system is that it uses the same obsolescence management program in place for Mark Vle control system components worldwide.

“SeaONYX is a control system that helps to manage our BOPs in deepwater drilling operations. The development of the new system is an outstanding example of importing industry-leading technologies from other GE businesses into the oil and gass space,” said Chuck Chauviere, president of Drilling for GE Oil & Gas. “In this case, our customers will be benefitting from a control system solution that has a strong track record of success and high-level performance in the global power generation industry.”

A critical advance made by the SeaONYX system’s Mark Vle control platform is its inherent design for obsolescence management. The system addresses the industry-wide challenge of ensuring availability, especially for electronic components, for a product expected to operate for 20 years or longer. The SeaONYX system does this by using a standard footprint for the major components that will be used in future releases of Mark VIe hardware.

Another feature of the Mark Vle architecture is the ability to “hot swap” certain components while the system is running. When an individual component requires replacement, the rest of the system remains active while it is replaced. The new component will boot up, configure itself and typically come back online in a matter of minutes, increasing system availability.
The SeaONYX human machine interface software is based on GE’s WorkstationST* and GE Intelligent Platforms’ Proficy Cimplicity* tools. The interface is designed to smoothly integrate the touchscreen displays to provide an effective and efficient operator experience and enable the management of all system functions, alarms and events.

The SeaONYX system’s Engineering Workstation is based on Proficy Historian software, which collects and archives data at high speeds, sending it to an electronic archive. With its powerful compression algorithms, the Historian software enables easy and secure storage of data that can be used for cycle counts, data trending and other types of data analysis. The Historian forms the backbone of a powerful platform that will enable future applications that may include advanced monitoring, diagnostics and predictive analytics.

Source: www.ge.com

No related posts.

TenarisHydril Wedge 623™ connection: This technology was developed to comply with recent changes in deepwater operating requirements in the Gulf of Mexico. The new connection is an improved version of the Wedge 523™ semi-flush connection design featuring an additional external metal-to-metal seal and offering compression ratings (80-86% efficiency) and torque capacity unmatched in an integral connection.

It has been tested under the ISO 13679 CAL I-E testing protocol and meets additional operator requirements for survival loads, in line with API RP96 criteria. The connection comes with Dopeless® technology, which enhances its performance and reliability and provides additional operational, well productivity and HSE benefits.

TenarisHydril Blue® Riser connection: Tenaris’s first connection for riser applications, the Blue® Riser has been specially designed for use in deepwater top tensioned risers and high pressure drilling riser applications where an exceptional level of fatigue resistance and sealability performance is required. It has been tested for sealability under the ISO 13679 CAL I-E testing protocol as well as for fatigue performance and sealability after fatigue.

Tenaris experts will deliver a technical presentation about the company’s integral package for deepwater applications, including more information about these new technologies, at 11:00 a.m. on Tuesday, May 7 at booth 2965. For continued updates on the conference, follow Tenaris on Twitter, Facebook and LinkedIn.

Tenaris is pleased to participate for the 27th consecutive year in the premiere offshore conference.

Source: www.tenaris.com

No related posts.

The new mill will include non-destructive testing (NDT), forging lines, heat treatment and threading and finishing processes, a coupling shop and a centralizer line. A high level of automation in the operations will improve efficiency and reduce production times. The investment will create 200 new jobs once the mill is fully operational and the state-of-the-art facility will be designed to uphold the highest industry standards for quality and HSE.

“We are committed to enhancing our service and strengthening our local supply for oil and gas companies throughout North America,” said Alejandro Levrino, Tenaris Sucker Rods Director. “This project will be executed based on our vast experience of nearly 45 years in sucker rods manufacturing.” Currently the company has sucker rods production facilities in Argentina, Brazil, Romania and Mexico.

With this investment, Tenaris will increase its annual production capacity in sucker rods to over 4 million units consolidating its position as a major global manufacturer. It will produce Tenaris’s wide range of proprietary products, including BlueRodTM premium sucker rods, the HolloRodTM Series and XTorque rods, as well as the entire range of API sucker rods for beam pumping and progressive cavity pumping.

Source: www.tenaris.com

No related posts.

GE Oil & Gas (NYSE: GE) has received Spotlight on New Technology awards from the 2013 Offshore Technology Conference (OTC) for two new products that address the challenges of deepwater drilling. The awards showcase the latest and most advanced hardware and software technologies that are leading the offshore exploration and drilling industry into the future.

The two GE products honored are:
RamTel™ Plus System and ROV Subsea Display Panel. Blowout preventers (BOP) are critical components to drilling operation safety and are used on all wells, both on and offshore. GE’s RamTel™ Plus System and Remotely Operated Vehicle (ROV) Display provide the industry with real-time, electronic measurements of the BOP’s ram position and the pressure required to actuate the blades and/or sealing elements. This proven technology provides new data on the operational performance of the BOP that can be used in trending and prognostics in a way that mechanical systems cannot provide.

Deepwater BOP Blind Shear Ram. GE Oil & Gas has developed next-generation technology for shearing and sealing wellbore tubulars (casings and pipes). The patent-pending 5K Blind Shear Ram is designed for use in GE’s ram BOPs for offshore drilling and has demonstrated the capability to shear 6-5/8 inch S-135 drill pipe tool joints while achieving a wellbore seal at 15,000 psi pressure differential. The technology was developed by GE to address an industry need to shear and seal today’s large diameter, advanced metallurgy (strength, thickness and ductility) drilling tubulars.

“We are very honored to be recognized by the OTC for our development of these two new products,” said Chuck Chauviere, president of Drilling for GE Oil & Gas. “They are among the latest examples of how GE continues to seek and develop innovative solutions for the challenges faced in today’s complex drilling programs.”

In total, OTC presented 15 Spotlight on New Technology awards to exhibitors at this year’s show. GE Oil & Gas was one of only two companies to receive two awards.

Source: www.ge.com

No related posts.

“Over the past two years BP has built a significant portfolio of upstream interests in Brazil which offer long term growth potential. We are now actively engaged in exploring this new acreage,” said Guillermo Quintero, BP Brazil President. “The sale of our interest in the Polvo field is part of our ongoing global portfolio optimization as we reposition the company for long-term growth.”

BP currently has interests in fourteen exploration and production blocks in Brazil. BP purchased interests in ten exploration and production blocks – including the shallow-water Polvo field – from Devon Energy in 2011 and farmed into four deepwater blocks operated by Petrobras a year later. Earlier this year BP announced a successful flow test at its operated Itaipu discovery in the Campos basin, one of the blocks acquired from Devon.

The Polvo field is located in the southern part of Campos basin, approximately 100 kilometres off the coast of Rio de Janeiro, in water depths of around 100 metres. Commercial production started in 2007 and BP has operated the field since its acquisition from Devon. The other 40% stake in the field is owned by Maersk.

Polvo currently produces approximately 13,000 barrels of oil per day, with BP taking a 60% share.

Source: www.bp.com

No related posts.