Page 9 - FSUOGM Week 19 2021

FSUOGM INVESTMENT FSUOGM

Zarubezhneft targets Rosneft

assets in Vietnam

VIETNAM RUSSIAN state-owned oil and gas producer (PSA) for Block 05.3/11, in close proximity to
Zarubezhneft has agree to buy out its compatriot 06.1. It entered into the PSA in 2013 and has
Zarubezhneft is Rosneft’s shareholdings in two offshore projects drilled several exploration wells since, but is
undertaking due in Vietnam, along with a related gas and conden- yet to announce any discoveries. That block’s
diligence to seal the sate pipeline. resources are assessed at 28 bcm of gas and
deal, with closure Zarubezhneft is currently undertaking 130mn barrels of condensate.
anticipated in June. due diligence to seal the deal, a Rosneft repre- Rosneft also has a 33% share in the Nam Con
sentative told Interfax on May 4, with closure Son pipeline that transports gas and condensate
anticipated in June. The financial details of the from Block 06.01 and other nearby projects to
transaction have not been disclosed. shore. The pipeline is operated by PetroVietnam
Rosneft entered Vietnam in 2013 as part with a 51% interest, while France’s Perenco has a
of a broader expansion push overseas. It has a 16% position.
35% operating interest in Vietnam’s Block 06.1, In a departure from its previous acquisi-
while India’s ONGC Videsh Ltd (OVL) has a tion-focused strategy, Rosneft is now looking
45% stake in the block and state-run PetroViet- to rationalise its upstream portfolio in Russia
nam a further 20%. The area holds three gas and and overseas. It is dumping less valuable assets
condensate fields – Lan Do, Phong Lan Dai and in order to improve margins and raise cash for
Lan Tay – situated some 370 km offshore in the Vostok Oil, the megaproject it is developing in
Nam Con Son basin in waters up to 190 metres the Russian Arctic.
deep. Their initial gas reserves are reckoned at Zarubezhneft has shareholders in a number
69bn cubic metres, and they flowed some 3.2 of offshore projects in Vietnam, namely blocks
bcm of commercial gas last year along with some 16-1/15, 42, 12/11, 04-3, 04-1, 09-1, 09-3 and
condensate. 09-3/12. The country is already its main focus
Rosneft’s Vietnamese portfolio also of operations. It also controls assets in Russia’s
includes a production-sharing agreement northern Nenets region. ™

POLICY

Gazprom approves gasification roadmap

RUSSIA RUSSIA'S natural gas giant Gazprom has had the In 2Q21, the government, along with Gaz-
roadmap for the gasification of Russian regions prom and other entities, is to prepare and review
Gazprom is to become approved by the government. proposals for creating a single system for pro-
the unified gasification As reported by bne IntelliNews, Russia ducing and distributing gas in Eastern Siberia
operator within the continues to weigh up options for funding a and the Russian Far East. The system might
Unified Gas Supply $25bn, 10-year gasification programme, with include independent gas producers and could
System. the government previously reportedly sug- allow for different gas pricing options (including
gesting the issue of new shares in Gazprom export netback).
as a solution. Gazprom is to spend RUB526bn ($7bn) on
Under the roadmap, Gazprom is to become gasification in the next five years (offshoot pipe-
the unified gasification operator within the Uni- lines, gas distributing plants and intersettlement
fied Gas Supply System and in some other Rus- pipelines), VTBC reminds, while the overall cost
sian regions. of social gasification is estimated at RUB2 trillion
Social gasification (connecting households to ($26bn) over the next ten years, including a gov-
the gas grid free of charge for retail consumers) ernment share of expenses.
might be financed through increased gas distri- At this point, VTBC treats the news as not
bution tariffs and evening out tariffs for different market-moving for Gazprom, while affirming a
consumer groups, VTB Capital (VTBC) writes Buy call on the company's shares.
on May 7. As a reminder, it was previously discussed
The final decision on this is yet to be taken that the gasification of Kamchatka could be
in the near future, as the ministries of Finance, carried out using LNG (sold by Novatek to Gaz-
Energy, Economic Development and Industry, prom at an LNG export netback), VTBC also
as well as the Federal Anti-Monopoly Service, notes. The final decision on the way to provide
are yet to provide their proposals on this in May natural gas to Kamchatka consumers is also yet
and by the end of 2Q21. to be made. ™

Week 19 12•May•2021 www. NEWSBASE .com P9