NEFTE COMPASS A Weekly Publication on Oil and Gas in Russia, the Caspian, Central Asia and Eastern Europe
Copyright 2009 EIG. Unauthorized access or electronic forwarding, even for internal use, is prohibited. Vol. XVIII, No. 46, November 25, 2009 Russia Must Face Up To Alternative Inside This Issue: Energy — Khodorkovsky
■ Finnish trader wins maiden Espo tender, page 3■ Transneft buries Druzhba-Adria plans, page 4
Russia has yet to find its place in the future world of
■ Interview with Mikhail Khodorkovsky, page 5
energy as more alternative fuel sources come into
■ Rosneft results seen on the slide, page 7
play, Mikhail Khodorkovsky, the former head of
■ Zarubezhneft takes control of Turkmen block, page 8
Yukos, says in an interview from his jail cell in
■ Russia lists October oil production, page 9
Moscow, where he awaits trial on new charges.
In many ways, Russia is similar to Canada, with
its wide open spaces and abundant raw materials. “A
place in the world similar to Canada’s doesn’t suitus,” Khodorkovsky says. “More likely, some specu-
late, Russia will take on a role similar to Germany.”He admires Germany’s “integrated approach … the
Turkmenistan has found itself the focus of a beauty
development of technologies for energy conservation
contest in which all the international majors are lin-
ing up with proposals to develop its massive onshore
But he warns that “Russia could wind up like
gas reserves. But the Central Asian republic, which by
Namibia” if it continues to rely on raw materials and
the end of the year is due to pump its first volumes of
South Korean-style chaebol conglomerates.
gas east to China, is in no hurry to respond to the
Khodorkovsky, if he were to be released, sees a
majors’ overtures and has made it clear that its prior-
future for himself working in alternative energy.
ity is to find companies to develop the much riskier
“Ultimately, new forms of energy will become a
technological and economic reality,” he says in an in-
“All the companies have made their pitches,” a
terview with Nefte Compass (see p5). “This will result
Western oil executive said on the sidelines of an oil
in fundamental changes across the globe, perhaps
and gas exhibition in Ashkhabad last week. “Now
Khodorkovsky could be released in 2011 but
The likes of Chevron, Total and Royal Dutch Shell
faces another 22 years in jail on charges of stealing
have submitted proposals to the Turkmen authorities to
Yukos’ oil production currently being heard in a
tap fields such as the supergiant South Yolotan/Osman
Moscow court. The accusations are widely decried as
reservoir, which, according to UK auditors Gaffney,
“absurd” and there are hopes that the new Kremlin
Cline and Associates, has potential gas reserves of up to
leadership of President Dmitry Medvedev could
14 trillion cubic meters. But the State Agency for the
bring an end to a confinement that was instigated by
Management and Utilization of Hydrocarbons — the
the old-guard grouping around Prime Minister
body set up by Turkmen President Gurbanguly
Berdimuhammedov to negotiate with the companies —
Russia’s human rights record is coming under
more intense scrutiny following the death in custody
What the majors are looking for is a long-term
last week of Sergei Magnitsky, a lawyer for Hermitage
technical service contract that would guarantee a rea-
Capital Management, once one of the biggest in-
sonable rate of return and, crucially, enable them to
put the reserves on their books. But a source at one
Khodorkovsky says Russia needs to recognize
of the majors says the best the Turkmens are pre-
that the landscape is changing and that alternative
pared to offer so far is a one-year service contract for
oil companies wishing to invest in Turkmenistan.
“There is no question that a sociopolitical deci-
It is becoming increasingly clear to the majors that a
sion to break free from energy dependence has been
production sharing contract along the lines of the 30-year
(see Russia, page 2) (see Turkmenistan, page 2) Chairman: Raja W. Sidawi. Vice Chairman: Marcel van Poecke. President: Thomas Wallin. Editor-at-Large: Sarah Miller. Editor: Michael Ritchie (firstname.lastname@example.org). Editorial Offices: Holborn Tower, 137-144 High Holborn, 8th Floor, London WC1V 6PW, UK. .Tel: 44-20-7632-4714. Fax: 44-20-7404-1788. Moscow Bureau: 125315 Moscow, 72/4 Leningradsky Prospect, office 407, Russia. Tel: 7-495-721-1611/12/13. Fax: 7-495-721-1614. Washington Bureau: 1-202-662-0700. New York Bureau: Tel: 1-212-532-1112. Houston Bureau: Tel:1-713-222-9700. Singapore Bureau: Tel: 65-538-0363. Sales: email@example.com. Tel: 44-20-7632-4714. Fax: 44-20-7404-1788. Circulation: 5 East 37th Street, New York, NY 10016-2807. Tel: 1-212-532-1112. Fax: 1-212-532-4479. E-Mail: firstname.lastname@example.org. Web site: www.energyintel.com. Energy Intelligence also publishes: Petroleum Intelligence Weekly, Oil Daily, International Oil Daily, Energy Compass, World Gas Intelligence, Oil Market Intelligence, International Petroleum Finance, Natural Gas Week, Jet Fuel Intelligence, Energy Intelligence Briefing, Uranium Intelligence Weekly, LNG Intelligence and Gas Market Reconaissance. (continued from page 1) See the full interview on page 5.
dependence on one supplier, or agroup of politically associatedsuppliers, has been set and will be
Turkmenistan (continued from page 1)
is a one-off that will not be repeated.
replied to questions asked by NeftePaul Sampson, Ashkhabad Nefte Compass is published one day
Editorial Staff: Moscow Bureau Chief: Nelli Sharushkina. Senior Correspondents: Axel Busch, Paul Sampson. Staff Reporters: Tom Daly, Andrei Glazov, Nadezhda Sladkova. Copyright 2009 by Energy Intelligence Group, Inc. Registered as a newspaper at the Post Office. (“EIG”) ISSN 0968-6452. Reproduction in any form is forbidden without written permission from the publisher, with the exception that authorization to photocopy items for internal or personal use, the internal or personal use of specific clients, and for training purposes other than classroom is granted by Energy Intelligence Group, Inc. provided that the appropriate fee is paid directly to Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA. 01923, US. Tel: (1 978) 750-8400. For the copying of material for classroom use, please contact a Customer Service Representative at Copyright Clearance Center. CCC’s Transactional Reporting Service for this publication is 0968-6452/93. Russia Oil Production Surgut Waits For Dust Hits New Record To Settle On Mol
est energy ministry data (see page 9).
bly didn’t want in the first place.
tion sharing agreement (PSA) projects.
to 254,600 b/d, according to the lat-est statistics, although it was still
Finnish Trader Wins Maiden Espo Tender
11% lower than a year ago as thecompany waits for its ownership is-
of 50¢ per barrel to the Dubai oil price. Russia Redefines Exploration Strategy
from the port until tariffs are set for de-
offtaker of the bulk of Rosneft’s oil ex-
18 fields from the 13 first proposed. www.energyintel.com Russia
targets are lower than before (NC Nov.
unsecured rating in foreign currency. Lukoil Shifts Strategy Focus To Cash Flow
assets, monetization of gas reserves, in-
TNK-BP Confirms Barsky
tainties, Lukoil has decided to shift its
As CEO From 2011
tion to the growth of free cash flow.
executive, ending a 14-monthsearch for a successor for the ousted
Transneft Buries Druzhba-Adria Plans
that connects it with the Black Sea.
ter port of Omisalj on the Adriatic Sea. Nefte Compass that no progress is be-
businesses at BP and BP’s head office in
the first time with Russia’s 3,000 kilo-
www.energyintel.com Russia Russia Needs To Determine World Role — Khodorkovsky
production cycle — from the min-ing of the uranium through the
In this interview for Nefte Compass, Mikhail Khodorkovsky, who builtYukos into Russia’s biggest oil company before he was jailed and the companywas broken up, sets out his views on issues related to alternative energy andthe future of the Russian oil and gas industries (see p1).
thermal power stations. However,the level of the potential conse-
year period, appear more attractive.
fields” in deserts and semi-deserts. www.energyintel.com Russia
tional capacities will be exhausted. www.energyintel.com Finance Urals Energy Repays Sberbank Loan
release shares pledged by the com-pany’s owner, Leonid Dyachenko, in
Share Prices Closing On Nov. 23, 2009 ($/Share)
RTS prices are given for companies listed on the exchange. Market capitalization updated weekly.
Rosneft Profits Seen Slipping 60%
* Slovakia became a euro country Jan.1’09
www.energyintel.com Caspian/Europe Zarubezhneft Takes Control of Itera Turkmen Block
originally stipulated volume of 52 Bcm. Ukraine Gets Out Of Another Fine Mess
Putin’s stated intention not to fine Kiev
more feasible volumes (NC Sep.3,p3).
seven years and include 3-D seismic,with the first appraisal well to be
Timely Turnaround Eases Kazakh Fuel Pinch
active in Central Asia (NC Apr.2,p8). Mittal Lacks Mettle For Kazakh Block
offshore Kazakhstan just 10 monthsafter farming in.
the Satpayev exploration and produc-tion contract, as KMG’s sole partner.
Table is based on the following factors for conversion to barrels: Crude - 7.33; Mazut - 6.64; Gas Oil - 7.46; Gasoline - 8.51;
Jet Fuel - 8.00. Data for the previous month were revised. www.energyintel.com Russia
Russian Crude Oil And Gas Condensate Production/Exports, October 2009
Russian Crude Oil And Gas Condensate Production/Exports, October 2009 (cont.)
Russian Crude Oil And Gas Condensate Production/Exports, October 2009 (cont.)
* Exports to non-CIS markets via Transneft pipeline system. † Total for exports for PSA Operators exclude Sakhalin Energy and Exxon Neftegas which export crude bypassing Transneft pipeline system. ** Excluding exports
for state needs, rail shipment, transit. Figures may not add due to rounding. Source: Energy Ministry
Markets Crude Oil — Futures Fail To Sustain Upward Momentum The ICE Brent futures may, for the time
to prevent it from sliding below $75.
profit in a simple Mediterranean refinery,
gained $1.15 to yield a $2.20 profit.
sessed at dated Brent minus 70¢ c.i.f. Products — Gas Oil Pressured By Rising Offshore Storage European product markets remain a
pressure, and fuel oil faring better, al-
of the year, due to high stock levels.
suggest that total oil products in float-
million barrels at the end of October.
market for the remainder of the year. Marketplace
Spot Crude Oil Prices$/barrel f.o.b. terminal, or c.i.f. destination
Urals c.i.f. Med vs. Dated Brent Urals c.i.f. Med vs. Dated Brent
* Basis Rotterdam. ** Basis Augusta. $/metric ton Russian Gas Oil NWE Russian Gas Oil NWE $/metric ton www.energyintel.com
Wednesday, February 12, 2014 The Cass County Board of Supervisors met at 8:30 a.m. with all members present: Frank Waters, chair; Duane McFadden, Charles Rieken, Gaylord Schelling and Mark Wedemeyer. Agenda upon motion by McFadden, 2nd by Schelling was approved. Minutes of February 6, 2014 upon motion by Wedemeyer, 2nd by Rieken were approved. County Attorney Daniel Feistner reviewed curre
UM RECORTE DEMARCADOR NA ÉTICA CONTEMPORÂNEA: A PERSPECTIVA TERAPÊUTICA. Resumo: A contemporaneidade colocou em “xeque-mate” a crença messiânica da ciência, pois na realidade a ciência, que havia prometido uma verdade e um progresso, lançou a todos e tudo num reduto de incertezas. O debate sobre a atuação da ciência aparece avindo dos outros saberes como da arte, da f