Gazprom Neft Buys Oilfield in Orenburg Region

- Gazprom Neft Buys Oilfield in Orenburg Region

Friday, September 02, 2011
OAO Gazprom Neft

The Gazprom Neft Group has acquired 100% of ZAO Centre of Science-Intensive Technologies, which holds exploration and production licenses for hydrocarbons in the Tsarichanskoye field – the largest of those discovered in the Orenburg region in recent years. According to Gazprom Neft's estimates, recoverable hydrocarbon reserves in the field may exceed 25 million tons.

"Gazprom Neft is familiarizing itself with a new territory – the Orenburg region, which will become, in the long run, another oil production center for the company. Gazprom Neft is planning to expand its presence in the region, both through the development of the underlying asset – the Eastern part of the Orenburg field, and through engaging other blocks to ensure a synergistic effect," said Vadim Yakovlev, the First Deputy CEO of Gazprom Neft.

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Gazprom Won't Begin Libya Talks Until There Is 'Legitimate' Regime

- Gazprom Won't Begin Libya Talks Until There Is 'Legitimate' Regime

Tuesday, August 23, 2011
Dow Jones Newswires
MOSCOW
by Jacob Gronholt-Pedersen

Gazprom won't begin talks on restarting its projects in Libya until a "legitimate" regime is in place in the North African country, the company said Tuesday.

Gazprom halted work at oil concessions C96 and C97--a joint project with Wintershall, a unit of German chemical giant, producing 100,000 barrel a day when unrest broke out in the country in February. One of the projects is in the Mediterranean Sea off Libya's coast, while the second is Block 64 located in the Gadames oil province, .

"We would like to return to Libya as soon as possible," a Gazprom spokesman said.

"But until Libya has a legitimate government in place, we won't start negotiations," he said.

Wintershall said Monday that production at the C96 and C97 concessions could be restarted within several weeks, depending "on the state of the export infrastructure as well as a stable security situation in the country."

Plans by Gazprom's oil unit Gazprom Neft to acquire a 33% stake in ENI's Elephant field in Libya were also delayed due to the unrest in the country. The company said in April the deal would be finalized when the situation stabilizes in Libya, but declined to comment Tuesday.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Gazprom Neft 2Q Earnings Soar to $1.17B

- Gazprom Neft 2Q Earnings Soar to $1.17B

Wednesday, August 03, 2011
OAO Gazprom Neft

Gazprom Neft published on its website its consolidated financial results in accordance with US GAAP for 1H 2011.

Increased sales volumes and higher crude and petroleum prices drove the Company's revenue up by 39% to $21.341B in 1H 2011 compared to 1H 2010 (2Q 2011 revenue of $11.476B is 43% higher than in 2Q 2010).

Earnings before interest, income tax, depreciation and amortization (EBITDA) in 1H 2011 comprised $4.945B or 58% higher than in H1 2010 due to an increase in refining throughput, product mix optimization and improved market conditions. In 2Q 2011 EBITDA increased by 60% to $2.478B compared to 2Q 2010.

Net income in 1H 2011 increased by 74% to $2.604B versus 1H 2010 driven primarily by growth in EBITDA. 2Q 2011 resulted in $1.167B in net income (56% higher than in 2Q 2010).

The increase in net income resulted in a 6% growth in net cash provided by operating activities 1H 2011 compared to the same period of 2010 or $2.512B. Net cash provided by operating activities reached $1.891B in 2Q 2011 or 28% higher than in 2Q 2010.

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Gazprom Neft, Petronas Sign PSA with Cuba on 4 Offshore Blocks

- Gazprom Neft, Petronas Sign PSA with Cuba on 4 Offshore Blocks

Monday, August 01, 2011
Dow Jones Newswires
MOSCOW
by Alexander Kolyandr

Gazprom Neft, which is controlled by state gas company Gazprom, said Monday it has signed a product-sharing contract on four blocks in the Gulf of Mexico offshore Cuba with Petronas, the Malaysian national oil company, and Cubapetroleo, the Cuban national oil company.

Following the signing, Gazprom Neft becomes a party in the contract and acquires 30% stake in the project, while Petronas retains 70% in the project. Prior to the agreement Petronas had a 100% stake in the project.

In October 2010, Gazprom Neft and Petronas signed the Farm-out Agreement

"This partnership with Petronas will help Gazprom Neft to enforce its competence in the sphere of deep water development and expand its expertise in projects outside of Russia," Alexander Dyukov, chairman of Gazprom Neft management board said.

Apart from Cuba, Gazprom Neft participates in international exploration and production projects in Iraq, Equatorial Guinea, Venezuela and--through its Serbian affiliate company--in Angola, Romania and Hungary.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Gazprom Neft: Schlumberger to Drill Wells at Iraq Badra Field

- Gazprom Neft: Schlumberger to Drill Wells at Iraq Badra Field

Monday, June 20, 2011
Dow Jones Newswires
MOSCOW
by Jacob Gronholt-Pedersen

A consortium led by Russian state oil producer Gazprom Neft has picked Schlumberger to drill the first wells at the Badra field in Iraq, the Russian company said Monday.

Schlumberger has been contracted to drill 11 wells over a three-year period, Gazprom Neft said.

The consortium--which also includes South Korea's Korea Gas Corp., or Kogas, Turkish Petroleum Corp., or TPAO, and Malaysia's Petronas--plans to start production from the Badra field in 2013.

Gazprom Neft estimates total costs for the Badra project at $2 billion and plans to drill 17 wells by 2017, when production should reach 170,000 barrels a day.

Gazprom Neft is the oil arm of Russian gas giant Gazprom.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Gazprom Neft, Shell to Mull JV for Western Siberia Projects

- Gazprom Neft, Shell to Mull JV for Western Siberia Projects

Friday, June 17, 2011
Dow Jones Newswires
MOSCOW
by Malgorzata Halaba

Gazprom Neft, the oil arm of Gazprom, said Friday it has signed a cooperation agreement with Shell Exploration Company BV, a unit of U.K. energy giant Shell.

The companies will assess the potential of creating a joint venture to pursue projects in Western Siberia and areas both inside and outside of Russia, and to further develop cooperation between the two companies in upstream and downstream, the statement said.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Gazprom Neft, GEPetrol Ink Cooperation Agreement

- Gazprom Neft, GEPetrol Ink Cooperation Agreement

Tuesday, June 07, 2011
Gazprom Neft

Alexander Dyukov, Chairman of the Management Board of Gazprom Neft, and Candido Nsue Okomo, Director General of GEPetrol, the national oil company of Equatorial Guinea, signed a cooperation agreement in the Kremlin. The signing of the agreement was witnessed by Russian President Dmitry Medvedev and the President of Equatorial Guinea, Teodoro Obiang Nguema Mbasogo.

The document regulates key areas of cooperation between Gazprom Neft and GEPetrol within the framework of implementing Product Sharing Agreements (PSAs) signed in 2010 for geological prospecting of blocks T and U on the Equatorial Guinea shelf. In particular, the agreement sets out the fundamental principles for managing the project and the procedures for making key decisions.

The registration of Gazprom Neft Equatorial in Equatorial Guinea is currently being finalized and, once created, the company will represent Gazprom Neft in the project for geological prospecting of blocks T and U. Analysis of the results of seismological exploration conducted in February 2011 is scheduled to be completed by the end of 2011/start of 2012.

"Projects in Equatorial Guinea enable Gazprom Neft to simultaneously achieve several objectives: creating a production center in West Africa, gaining new experience of managing international projects and broadening our shelf expertise," commented Alexander Dyukov, Chairman of the Management Board of Gazprom Neft.

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Gazprom to Reach Pre-Crisis Output 2013, Sees Increase in 2014

- Gazprom to Reach Pre-Crisis Output 2013, Sees Increase in 2014

Thursday, June 02, 2011
Dow Jones Newswires
by Alexander Kolyandr

Gazprom expects to reach its "pre-crisis production level" in 2013, for which it needs to put the Yamal field on-line in 2012, said the company's Deputy Chief Executive Alexander Ananenkov.

Speaking at a televised press conference, he said the company is aiming to reach a production level of about 550 billion cubic meters (BCM) of gas, first reached in 2006, in 2013.

He said Gazprom is currently producing gas ahead of the planned level of 505.6 BCM and may reach production of 519 BCM in 2011.

By 2014 there will be a significant production growth and the company may increase production to 570 BCM.

Gazprom said late 2010 it expects gas production to be between 570 billion cubic meters and 580 billion cubic meters by 2015.

Ananenkov said to enable this production growth the company needs to start full production on Yamal gas field.

He said the company is not planning to start any production on Kovykta gas field before 2017.

Ananenkov said Russia's total gas production may reach 1 trillion cubic meters by 2030.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Gazprom Enters Bangladeshi Gas Sector

Gazprom Enters Bangladeshi Gas Sector

Friday, April 22, 2011
Asia Pulse Pte Ltd

Gazprom will drill five wells at different existing gas fields in Bangladesh in October and will soon help train Petrobangla employees, said a Bangladeshi official this week.

The decision to go ahead with the project was announced by Bangladesh Prime Minister's Advisor Dr. Tawfiq-e-Elahi Chowdhury following a meeting at the Energy Ministry Wednesday with a high power Russian delegation led by Gazprom vice president Valery Gulev.

The 11 member Russian energy delegation is now in the city on a three-day visit. During the meeting top officials of energy ministry, Petrobangla and other organizations in power and energy sector were present.

Dr. Elahi, who led Bangladesh side in the negotiations, told reporters that the drilling will start in October and will play a vital role in mitigating the nagging gas crisis.

Valery Gulev said they have adequate experts to help improving Bangladesh energy sector.

"We've technical expertise to help Bangladesh. It will take one month to one and half months to bring our necessary equipment in Bangladesh. We're hopeful of starting our works by September or October," he told reporters.

However, he said that the issue of financial involvement is yet to be settled.

"But, this will be settled through negotiation," he added.

According to the PM's Advisor, Gazprom will supply and install two gas compressors in the country to boost the pressure in gas pipelines. It will need 12 to 18 months to install the compressors.

He said the Gazprom has offered Bangladesh to prepare a strategic master plan for the gas sector.

In addittion to this, he said, Gazprom will help Petrobangla train its employees under a bilateral cooperation agreement on capacity building.

Gazprom will set up an office in Dhaka to strengthen its cooperative role for Bangladesh energy sector.

Sources said a memorandum of understanding (MOU) has been ready for signing between the two sides and it will be inked at the end of the week.

The delegation is scheduled to meet Prime Minister Sheikh Hasina and other dignitaries during its visit.

Energy Ministry officials said the Russian delegations visit is result of the Prime Minister's visit last year in Moscow.

Last month, Foreign Minister Dipu Moni also visited Moscow.

Gazprom, ENI to Conclude Elephant Stake Buy after Libyan Unrest

Gazprom, ENI to Conclude Elephant Stake Buy after Libyan Unrest

Wednesday, April 20, 2011

Dow Jones Newswires

by Jacob Gronholt-Pedersen

Gazprom plans to acquire a 33% stake in ENI's Elephant field in Libya has been delayed, and will be finalized when the situation stabilizes in the North African country, Gazprom said Wednesday in a press release.

The announcement came following a meeting in Moscow between Gazprom Chief Executive Alexei Miller and ENI CEO Paolo Scaroni.

The two also discussed France's Electricite de France and Germany's Wintershall joining the South Stream project.

Shell, Gazprom CEOs Discuss Joint Projects

Shell, Gazprom CEOs Discuss Joint Projects

Tuesday, April 12, 2011
Dow Jones Newswires
by Jacob Gronholt-Pederson

The heads of energy giants Shell and Gazprom met Tuesday in Moscow to discuss potential joint projects in Russia and outside Europe, the Russian company said in a statement.

Peter Voser, chief executive of Shell, and Gazprom CEO Alexei Miller discussed the "implementation of joint projects in western Siberia and in eastern Russia," Gazprom said.

In addition, they talked about possible joint processing and distribution activities in Europe and Russia, as well as Gazprom participating in Shell's exploration and production projects elsewhere, the Russian company said.

Shell and Gazprom signed a memorandum of understanding last year on a global strategic partnership.

The two companies are already partners in the Sakhalin-2 project on Russia's Pacific coast.