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

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

Friday, August 1st, 2014

Offshore Marintec Russia: Key Issues of the Arctic Shelf Development

October 7-10, 2014 in St. Petersburg Offshore Marintec Russia will bring together representatives of state authorities, experts from Russian and international companies, and leading scientists to discuss the most important aspects of the development of the Arctic continental shelf.

Offshore Marintec Russia – international conference and exhibition dedicated to the Arctic continental shelf infrastructure development in accordance with the state program, approved by the President of Russia Vladimir Putin. The project will continue the best traditions of the forum RAO/CIS Offshore which has been held for more than 20 years in St. Petersburg, and the world-famous network of exhibitions on shipbuilding and marine technologies Marintec and combine the most important development trends of the marine, transport, energy and technology infrastructure of the continental shelf.

Gazprom, Lukoil, Gasflot, FMC Technologies, Schlumberger, Sevmash, Krylov State Research Centre, United Shipbuilding Corporation and many other major participants in the oil and gas, shipbuilding and energy sectors have confirmed their participation in the Offshore Marintec Russia. The companies will present priority projects, new technologies for the development of hydrocarbon resources offshore, special purpose ships, facilities for the development of infrastructure shelf.

Offshore Marintec Russia Conference will start its work with a Plenary session «Sustainable development of the Arctic: strategic goals and priorities». The program committee has approved six sessions topics currently. Meeting of experts will be devoted to modern trends of the continental shelf in terms of scientific, technical, economic and environmental aspects.

The international conference and exhibition on shipbuilding and infrastructure related to the Russian Continental Shelf has received the support of key Russian authorities: Energy, Trade, Natural Resources, Economic Development, Foreign Affairs and Transport.

The event is sponsored by Gazprom (General Sponsor), DNV GL (Official Sponsor), Siemens and Kvaerner (Sponsors of a Conference Session).
Organizers: Restec Exhibition Company and UBM Company.
Please contact:
Tel/fax: + 7 812 320 96 60
E-mail: oilgas@restec.ru
www.offshoremarintec-russia.com



Friday, August 1st, 2014

Kara-Summer 2014 Arctic Field Expedition Started

The research and development expedition to investigate ice and metocean conditions in the Russian arctic organized by The Arctic Research and Design Center (the Rosneft and ExxonMobil JV) with the support of Arctic and Antarctic Research Institute experts has started in the White sea.

Scientific research vessel Akademik Tryoshnikov departed the Arkhangelsk port to move along the route from the Kara Sea to the Chukchee Sea, virtually along the whole of the Russian Arctic coast. The comprehensive research expedition will last for 57 days. It will involve experts of Roshydromet, All-Russian Research Institute of Geology and Mineral Resources of the World Ocean named after academician Igor Gramberg and Institute of Geography of the Russsian Academy of Sciences. During the expedition, scientists will explore the territory of several Rosneft license blocks in the Laptev Sea, the Kara Sea, the East Siberian Sea, and the Chukchee Sea.

Comprehensive investigations involve meteorological, hydrological, glaciological, volcanological and geochemical works. It is expected to launch three modern meteorological observing stations, and 16 buoy-based stations. Experts will study currents, water mass distributions, and explore variability of temperature. There will be installed ofsensors on icebergs to constantly monitor their coordinates and drift. Scientists expect to explore glaciers at the archipelagoes of Novaya Zemlya and Severnaya Zemlya, as well as glaciers and volcanoes on the De Long Islands. There will be carried out advance geochemical survey for detection of shows of oil and gas in the Laptev Sea and the Chukchee Sea. Equipment and technologies of the expedition comply with the highest international standard.

Special attention will be paid to biological studies, including monitoring of marine mammals and birds. There will be studies of polar bears. Zoologist experts expect to obtain data on distribution of polar bears in the areas of interest, put collars with satellite sensors on adult polar bears, and then monitor their migration. It is also expected to subsequently carry out biological studies to estimate influence of environmental changes on polar bears.

All the works will be carried out considering exclusive standards regarding ecological and industrial security. Before the expedition started an additional audit of Akademik Tryoshnikov vessel compliant international IMCA standards has been conducted.

Source



Friday, August 1st, 2014

Rosneft Closes the Deal for the Acquisition of Oil Field Services from Weatherford International

Rosneft announces the close of the deal for the acquisition of land drilling and workover assets of Weatherford in Russia and Venezuela.

The closure marks the realization of the agreement signed in July 2014 by Rosneft and Weatherford International plc.

Rosneft acquires 8 companies (part of the Weatherford group) involved in drilling operations in Russia and Venezuela.

The realization of the deal will allow Rosneft to strengthen its positions on the market of drilling and workover services and will expand the array of service contractors which will enable to boost efficiency of drilling and hydrocarbons production, enhance financial results.

Source



Thursday, July 31st, 2014

Yukos Oil Company Secures Largest Ever Award From European Court Of Human Rights

€1.9 billion ($2.5 billion) is the largest award ever made by ECtHR by a factor of twenty-one times.

31 July 2014, London: Today the European Court of Human Rights (ECtHR) in Strasbourg announced its largest ever award of Just Satisfaction. The award of €1.9 billion ($2.5 billion) to YUKOS Oil Company (YUKOS) is 21 times larger than any previous award made by the ECtHR in its history.

Commenting on the announcement, YUKOS’ former Chief Executive Officer, Steven Theede said: “This is by multiples the largest award that the ECtHR has ever made, although the award is substantially less than the claim submitted by YUKOS.  All YUKOS shareholders will benefit from this decision. The pursuit of this case, originally filed in April 2004, was to ensure that YUKOS shareholders obtained recompense for the wrongful acts of the Russian Federation.  It has been worth the effort.  It is important to remember that in 2004, the ECtHR was the only judicial venue available to YUKOS as a legal entity because it could not seek the protection of international commercial tribunals, open only to investors.”

Bruce Misamore, former Chief Financial Officer said of the ruling: “We are very pleased that the ECtHR has awarded substantial damages for the Russian Federation’s illegal, unfair, hasty enforcement measures, including fines and bailiffs charges, which resulted in the destruction of YUKOS.  However, the ECtHR has failed to recognize the true economic losses sustained by YUKOS shareholders.  In particular, the judgment says nothing about compensation for the rigged auction of Yuganskneftegaz (YNG), despite the ECtHR’s 2011 ruling that the decision to auction YNG “was capable of dealing a fatal blow to YUKOS’ ability to survive the tax claims and to continue its existence”.”

He continued: “Inevitably the Just Satisfaction award is based on the ECtHR’s restrictive merits judgment of September 2011, which fails to recognize the illegitimate methods and motives of the Russian Federation in destroying YUKOS.  This goes against all other independent court and arbitral findings, the most prominent of which was just announced on Monday from the Permanent Court of Arbitration in The Hague.”

Misamore added: “Over 55,000 YUKOS shareholders now stand to receive some compensation directly from the Russian Federation under this judgment.  This is a real step forward but in no way reflects the true damages suffered by the victims of the destruction of YUKOS by the Russian Federation.”

The ECtHR has specified the list of YUKOS shareholders entitled to receive their share of this €1.9 billion ($2.5 billion) award.  The Russian Federation is compelled by the ruling to meet the ECtHR’s order to directly compensate all of these shareholders without delay.



Thursday, July 31st, 2014

EU Expands Sanction List Against Russia, Ukraine

The European Union has added another eight people and three companies to the ‘blacklist’ against Russia and Ukraine, EU official journal said on Wednesday evening.
The sanction list included first deputy head of Russian presidential staff Aleksey Gromov, Governor of Northern Sea Route Bank Board Arkady Rotenberg, largest shareholder of bank Rossiya Yuri Kovalchuk and second largest stockholder of bank Rossiya Nikolai Shamalov.
The penalty list also included Chairman of the Supreme Council of the self-proclaimed Donetsk People’s Republic Boris Litvinov, spokesman of government in Luhansk People’s Republic Oksana Chigrina, Russia’s Crimea Interior Minister Sergei Abisov, Russian businessman Konstantin Malofeyev whom Kiev suspects of funding militia in east Ukraine.
Russian National Commercial Bank, air defense system-producing plant Almaz-Antey and air company Dobrolet were added to the EU ‘blacklist’.

So, the EU sanction list against Russia and Ukraine now already totals 95 individuals and 23 legal entities. All of them are banned from entering the EU states until November, if their assets are found in European banks they will be frozen and European businesses are banned to deal with legal entities on the sanction list.
Along with enlargement of the ‘blacklist’ against Russia and Ukraine the European Union has introduced a broad portion of additional sanctions against the Russian Republic of Crimea. Most new trade restrictions on Crimea will take effect starting from July 31, the EU official journal said.
New trade and investment restrictions were imposed within the EU strategy not recognising Crimea’s accession to Russia. These measures included a ban for European companies on new investments in infrastructure projects, transport, telecommunications, energy sector as well as oil and gas production and extraction of mineral resources in Crimea. Not only direct and indirect investments, but also insurance services for any projects in the above-mentioned spheres were banned.

New sanctions will be not retroactive and will be applied to future projects. All financial and technical actions under the contracts concluded before July 30 are permitted to continue until October 28.
The EU has also approved the list of categories of Crimean goods banned for trade. The list included almost all possible mineral resources and their derivates as well as hydrocarbons. Meanwhile, industrial products for their extraction – pipes and drilling equipment, including for offshore production were put on the sanction list. “Sea water and salt solutions” are on the top of this penalty list which has more than 250 positions.
It is still hard to say how real this new list of banned types of new Crimean projects will be for European business.

Source



Thursday, July 31st, 2014

Total Halts Novatek Share Purchasing Due to Sanctions

French oil major Total stopped buying shares in Russia’s Novatek when a Malaysian airliner was shot down over Ukraine, but it is still too early to gauge the impact of western sanctions against Russia, Total said, reported Reuters.

* Q2 net adj profit down 12 pct to $3.15 bln

* Yamal development operations continuing, review in August

* Says impact of Russia sanctions on Yamal LNG uncertain

* Says production bottomed out in the second quarter

* Shares down as much as 3.1 pct (Adds shares, analyst comment, detail)

Total is one of the top foreign investors in Russia but now faces a cloud over its future there since the downing of flight MH17 on July 17 over Ukrainian territory held by pro-Russian rebels worsened the oil-rich country’s relations with the West and raised the threat of deeper sanctions.

The oil company had forecast in April that Russia would become its biggest source of oil and gas by 2020 thanks to its partnership with Novatek and their Yamal LNG project in Siberia.

“We stopped buying shares in Novatek the day of the plane accident, considering all the uncertainties that this event could lead to,” Chief Financial Officer Patrick de La Chevardiere told reporters in a conference call.

“We have not stopped operations on the Yamal project at this stage. We agreed with our partners to take stock of the situation at the end of August,” he said during a presentation of the company’s second-quarter results.

Shares in Total fell as much as 3.1 percent, the biggest decliner in an index of European oil and gas companies. Total’s net adjusted profit fell to $3.15 billion, less than a $3.27 billion consensus analyst forecast cited by Bernstein.

“Results are one reason, it’s true, but let’s not forget Russia, to which the group is very exposed,” a Paris-based fund manager said of the share price drop that wiped 3.7 billion euros off the market capitalisation of France’s biggest company.

Russia accounted for about 9 percent of Total’s oil and gas output in 2013.

At the end of June, Total owned 18 percent of Novatek, which has seen one of its shareholders hit by U.S. sanctions. Total bought a 12 percent stake in Russia’s second-largest natural gas producer for $4 billion in 2011 with an option to increase its holding to 19.4 percent within three years.

De La Chevardiere said Total was not doing business with people on the U.S. and EU sanction lists, although he said he had yet to see the EU’s latest list of measures against Russian oil companies, banks and defence firms over Moscow’s support for rebels in easternUkraine, unveiled late on Tuesday.

“We need more time to review the consequences of these sanctions. If these sanctions forbid us to work there, we will be forced to stop working, but we can’t forget that Russia is a big oil country,” he said.

The $27 billion Arctic Yamal peninsula liquefied natural gas (LNG) project, which plans to export 16.5 million tonnes of LNG a year, also caused some headaches at French oil services firm Technip, which last week cut its margin target for its onshore/offshore unit for this year and next.

Total’s London-based rival BP, which gets about a third of its crude oil output from Russia, also warned further Western sanctions could harm its business there and its relationship with Russian state oil group Rosneft.

PRODUCTION BOTTOMED OUT

In the second quarter of the year, Total’s oil and gas production fell 10 percent compared to the same quarter a year ago, to 2.054 million barrels of oil equivalent per day (boepd).

The main reasons were heavy maintenance, the deterioration of security in Libya and the loss of the ADCO concession in Abu Dhabi, which the emirate took over in January and is expected to re-award in 2015.

“This year all the maintenance was concentrated on the second quarter,” the CFO said, citing work in the North Sea, Nigeria and Thailand.

The same reasons affected net adjusted profit, which fell 12 percent year on year, also hit by a very weak refining margin, which was less than half the level of a year ago in the three months to the end of June.

“We went through moments when margins were negative during the second quarter, we cut production to the technical minimum at some refineries because the more we produced the more we lost money,” he said, declining to say which ones.

Margins have started to improve in the third quarter, but remain “very volatile”, Total said.

“Weak set of numbers from Total and the stock will rightly be weak today,” said Bernstein analysts, who have an “outperform” rating on the stock.

“Results seem to be impacted by high levels of maintenance in both the upstream and downstream resulting in lower volumes and higher costs,” they wrote.

The CFO said output had hit a bottom and was expected to rise as projects such as Laggan-Tormore in the North Sea and Ofon Phase 2 in Nigeria came on stream in the second half of the year.

De La Chevardiere said he would give an update on the group’s long-term production targets – 2.6 million boe/d in 2015 and 3 million boe/d in 2017 – at an annual investor day conference in London in September.

“But it’s clear that delays at Kashagan are not good news,” he added, saying that the field’s operator did not expect any restart of the giant Kazakh field before 2016.

The group will also unveil a new cost-cutting plan in September.

De La Chevardiere also said China’s Sinopec had notified Total that it would not buy its Usan field in Nigeria after all, a $2.5 billion deal for a stake in the OML 138 block that the French group had announced in November 2012.

“I don’t know their reasons. We have launched the process two days ago to find a bank to relaunch the sale process and find a new buyer,” he said.

Total proposed a dividend of 0.61 euro per share for the second quarter. Revenue was up 2 percent to $62.56 billion. (Additional reporting by Alexandre Boksenbaum-Granier and Blaise Robinson; editing by Andrew Callus and Tom Pfeiffer)



Thursday, July 31st, 2014

Kashagan Restart Slips to Optimistic Summer of 2016

Kazakhstan’s giant Kashagan oilfield may resume production in the first half of 2016 under an “optimistic scenario”, Kazakh Oil and Gas Minister Uzakbai Karabalin said on Wednesday, putting off his earlier estimate of the restart date.

Production from the oil deposit in the Caspian Sea, one of the world’s biggest oil finds of recent times, began last September but was halted in October after gas leaks in the field’s pipeline network were detected.

Karabalin told Reuters in an interview last month that Kashagan might “realistically” resume output in early 2016.

But due to the complexity of repair works at the deposit, it could take longer to restart production, he told a news conference on Wednesday.

“Under an optimistic scenario, the beginning of production will be in the first half of 2016,” Karabalin said. “Under another scenario, taking into account the completion of a (new) gas pipeline, this may be the second half of 2016.

“But these dates have yet to be defined more exactly.”

Recoverable reserves at Kashagan are estimated at 9 billion to 13 billion barrels of oil.

Kazakhstan, the second-largest post-Soviet oil producer after Russia, had originally planned to produce up to 8 million tonnes at Kashagan in 2014.

But due to the field’s stalled production, the Central Asian nation will struggle to maintain its 2014 oil output at last year’s level of 81.7 million tonnes, Karabalin said.

He said the North Caspian Operating Company consortium (NCOC), which develops the field, now had to replace the total network of oil and gas pipelines which is almost 200 km (125 miles) long.

The production of new pipes for Kashagan would start in August and their first shipment was expected in December, Karabalin said. He did not say who would supply the pipes, nor did he give the estimate for the cost of the new pipelines.

The length of repair works at Kashagan would to a large extent depend of the availability of special barges which will have to lay the pipelines in the Caspian Sea, Karabalin said.

NCOC has identified stress cracking due to sulphur-laden, highly corrosive gases as “the root cause of the pipeline issues” at Kashagan.

It said Japan’s Sumitomo and JFE had provided the pipes, while Italy’s Saipem had been contracted to lay them.

NCOC includes Eni, ExxonMobil, Shell and Total, holding 16.8 percent each. Kazakh national oil and gas firm KazMunaiGas [KMG.UL] has 16.87 percent, China’s CNPC [CNPET.UL] 8.33 percent and Japan’s Inpex holds 7.6 percent.

(Reporting by Dmitry Solovyov and Mariya Gordeyeva; editing by Jeremy Gaunt)



Thursday, July 31st, 2014

NADL – North Atlantic Drilling Secure Commitment for Six Offshore Units from Rosneft

North Atlantic Drilling  is pleased to announce that 6 binding offshore contracts have been executed with Rosneft Oil Company. The total revenue potential for the six contracts exclusive of mobilization is approximately US$4.25 billion. According to the agreement, any break rights expire after 100 days.

The executed contracts include 5 year contracts for the West Navigator, the West Rigel, the West Alpha, two newbuild CJ-54 class rigs, and a 2.5 year contract for a Gusto class Jack-up rig. These contracts commence in Russian waters from 2015 through 2017.

These binding contracts are consistent with the provisions of the Investment and Cooperation Agreement between Seadrill, NADL and Rosneft announced on May 24, 2014.

Alf Ragnar Lovdal, Chief Executive Officer of NADL says in a comment, “We are very pleased with the execution of these contracts, which is in line with the timetable agreed earlier this year. Our partner Rosneft has shown remarkable cooperation at every stage throughout this process. This milestone is testament to the ability of both NADL and Rosneft’s employees and we hope that further transactions can be concluded in a similar manner.”

NADL is an offshore harsh environment drilling company with focus on the North Atlantic basin. The company has nine drilling units in the fleet, including five semi-submersibles, a drillship, and three jack-up rigs. Seadrill Limited currently owns 70% of the outstanding shares and the company is listed on the NYSE and Norwegian OTC with a market capitalization of approximately US$2.3 billion.



Thursday, July 31st, 2014

Rosneft and North Atlantic Drilling Expand Offshore Partnership

Rosneft and North Atlantic Drilling Ltd. have entered into long-term offshore drilling contracts. The transaction contemplates employment of six offshore drilling rigs until 2022 with the purpose of carrying out Rosneft offshore projects, including harsh environment.

After the signing, Igor Sechin stated: “Entering into long-term offshore drilling agreements will allow Rosneft to ensure implementation of exploration and development of its harsh environment offshore license areas.”

Alf Ragnar Lovdal, Chief Executive Officer of NADL says in a comment, “We are very pleased with the execution of these contracts, which is in line with the timetable agreed earlier this year. Our partner Rosneft has shown remarkable cooperation at every stage throughout this process. This milestone is testament to the ability of both NADL and Rosneft’s employees and we hope that further transactions can be concluded in a similar manner.”

Source



Thursday, July 31st, 2014

Rosneft to Carry Out Ecologic Fishery Research in Laptev Sea

For the first time in history of Arctic Rosneft will carry out integrated ecologic fishery research on three licensed sites (LS) of Laptev Sea: Anisinsko-Novosibirsky, Ust’ Lensky and Ust’ Oleneksky.

The Program of ecologic fishery research realization is the first and obligatory part of licensed sites water areas geologic research, which includes geological and ichthyological surveys. As a result of the research an integrated picture of original (background) ecological state will be received.

The field investigations with two vessels will last for 90 days. In this period of time scientists and experts of Murmansk Marine Biological Institute Kola Scientific Center of Russian Academy of Sciences and State Oceanographic Institute named after N. Zubov will study all the elements of ecosystem, from viruses and bacteria to birds and animals, inhabiting this region. For the first time in the history more than three hundred surveys will be conducted by means of bottom and pelagic trawling during the season. Besides, an analysis of nature factors – air temperature, water salinity and climatic changes will be carried out.

The acquired data will provide the package of nature conservation measures elaboration and minimization of ecological risks when developing oil and gas objects.

Source








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