the RUSSIA oil & gas competitive intelligence report - Report Buyer

More documents

Recommendations

Info

Russia Oil and Gas Competitive Intelligence Report 2010 Latest Developments Gazprom Neft was awarded rights to develop the Novoportovskoye and Orenburgskoye East oil fields from parent Gazprom in December 2009. Novoportovskoye and Orenburgskoye East fields hold around 1.7bn and 700mn bbl of oil reserves respectively. In December 2009, Gazprom Neft signed a deal to acquire Sweden-based Malka Oil’s subsidiary STS- Service for US$118mn. STS has three licences in the Tomsk region with combined oil and condensate reserves of 189mn bbl (C1+C2). The deal has yet to be approved by Malka’s shareholders. Gazprom Neft gained majority ownership of mid-sized domestic producer Sibir Energy in June 2009 after acquiring 50% of investment company Bennfield. Having bought the assets of Bennfield's joint owner Igor Kesaev, Gazprom Neft acquired indirect ownership of 23.35% of Sibir's shares, bringing its total stake in the AIM-listed firm to at least 54.7% (following a series of opaque deals with various previous shareholders, 2.3% of Sibir’s shares are unaccounted for). Gazprom Neft consolidated Sibir into its financial accounts and manages the company in partnership with the Moscow city council (19.3%). In late September 2009, Gazprom Neft petitioned the Russian competition authorities to acquire 100% of Sibir, adding that it expects an answer soon. Whether it was able to come to an agreement with the remaining shareholders, particularly the Moscow council, which in mid-2009 indicated its intention to raise its Sibir stake, remains unclear. Since having trumped a rival bid from TNK-BP in late April 2009, Gazprom Neft has bought out Sibir’s floating shares and some of its major investors, spending a combined US$1.67bn on the deals. The ownership of the other 50% of Bennfield (and therefore 23.3% of Sibir) remains disputed by its owners. The outstanding Bennfield shares are currently held as collateral by state-owned Sberbank, pending payment of its outstanding debts. Gazprom Neft’s deputy director, Boris Zilbermints, said in December 2008 that the company may be looking for foreign partners to develop the Prirazlomnoye oil field in the Barents Sea. Gazprom’s subsidiary Sevmorneftegaz previously reneged on its intentions to bring in foreign participants and stated plans to develop the field on its own. Gazprom is currently constructing an offshore production platform at Prirazlomnoye, which is expected to be completed by late-2010 or early-2011. Gazprom plans to hand over the field, along with a number of other licences, to Gazprom Neft in 2009/10. Prirazlomnoye, which holds estimated oil reserves of 600mn bbl, is expected to produce 120,500b/d. In December 2008, CEO Alexander Dyukov has also made an offer to Chevron to develop more fields in western Siberia. Gazprom Neft and Chevron formed a JV in 2007, Northern Taiga Neftegaz, to explore for and develop assets in the Yamal-Nenets region. © Business Monitor International Ltd Page 31
Russia Oil and Gas Competitive Intelligence Report 2010 Rosneft Company Analysis Rosneft’s Yukos acquisitions turned the company into Russia’s largest oil producer, surpassing private rival Lukoil, and extending state control to some 40% of Russian production. In addition, the company has also become Russia’s largest refiner. Rosneft is largely state-owned, although a 2006 IPO has introduced an element of privatisation that the recession-hit Russian government in late-2009 pledged to deepen. Gazprom and Rosneft in November 2006 agreed a strategic cooperation deal that should see them share major development opportunities, rather than fighting over them. SWOT Analysis Strengths: Largest domestic oil producer Strong relationship with government Large fuels retail network Portfolio of CEE downstream interests Weaknesses: Complex corporate structure Inherited high cost base and inefficiency Opportunities: Growth in Russian oil production Rise in CEE regional oil consumption Financial Statistics Revenues: • US$46.83 (2009) • US$68.99bn (2008) • US$49.22bn (2007) • US$33.1bn (2006) Net income: • US$6.51(2009) • US$11.1bn (2008) • US$6.5bn (2007) • US$3.5bn (2006) Operating Statistics Oil production: • 2.18mn b/d (2009) • 2.13mn b/d (2008) • 2.0mn b/d (2007) • 1.5mn b/d (2006) Gas production: • 12.7bcm (2009) • 12.4bcm (2008) • 15.7bcm (2007) • 13.6bcm (2006) Proven reserves (PRMS): • 22.9bn boe (2009) • 22.3bn boe (2008) • 21.7bn boe (2007) • 11.8bn boe (2006) Expansion into Chinese downstream market Long-term gas export opportunities Threats: Sustainability of Russian oil growth Oversupply in CEE refining capacity Changes in national energy policy Market Position Rosneft’s 19 E&P subsidies cover most of the Russian regions, but around 80% of its production comes from Western Siberia (Yuganskneftegaz and Purneftegaz) and the Volga region (Samaraneftegaz). Rosneft owns and operates seven major refineries in Russia: the Tuapse refinery on the Black Sea coast; the Komsomolsk refinery in the Russian Far; the Kuibyshev, Novokuibyshevsk, and Syzran refineries in © Business Monitor International Ltd Page 32
Page 1 and 2: 2010 www.businessmonitor.com the RU
Page 3 and 4: Russia Oil and Gas Competitive Inte
Page 31: Russia Oil and Gas Competitive Inte
Page 83 and 84:
Russia Oil and Gas Competitive Inte
Page 85 and 86:
Russia Oil & Gas Competitive Intell
Page 87 and 88:
Page 89 and 90:
show all

the RUSSIA oil & gas competitive intelligence report - Report Buyer

Create successful ePaper yourself

Delete template?

Save as template?