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earnings in 2018 and increase Yamal LNG’s contribution this year by $125mn to $0.7bn. The total contribution of Yamal LNG in 2019F is $1.5bn, bankers estimate.
Rosneft has filed a RUB 89.1bn ($1.4bn) arbitration claim, including RUB 7.4bn in interest, alleging ‘unjust enrichment’ in 2015-18 against all the Sakhalin-1 co-owners, including its own units, Interfax reports. According to the court materials, the plaintiff’s claim includes RUB 24.5bn ($390mn) from Exxon’s unit (owns 30% in the project) and the same amount from Japanese Sadeco (30%). Another three defendants are Indian ONGC (owns 20%), Rosneft’s units Sakhalinmorneftegaz-Shelf and RN-Astra (together own 20%). Vedomosti reports that the probable reason for the claim is the transfer of oil from the North Chayvo field (owned by Rosneft) to the Chayvo field (Sakhalin-1 project). The court has set the preliminary hearing for 10 September. The press office for Exxon’s unit in Russia said it was “aware of the court action, rejects the claims and will take action to defend the rights of the Sakhalin-1 consortium.”
Russia's second-largest gas producer, independent Novatek, said its consolidated gas output in the second quarter of 2018 gained 3.2% year-on-year to 32.9bn cubic metres (cm ). The main drivers of the growth were the gas assets acquired from Russian diamond major Alrosa, as well as the ramp-up at the Yamal LNG (liquefied natural gas) plant, with the first train of the project remaining operational in the second quarter, Aton Equty commented on July 12, noting that Novatek’s gas sales were up 6.9% y/y in January-June 2018 to 35.4bn cm, including LNG sales. Novatek launched its first major LNG project Yamal in 2017 despite Western sanctions against its shareholder and influential Kremlin insider and stoligarch Gennady Timchenko. The company has also adopted an ambitious strategy for LNG growth through 2030 and plans a second LNG plant, Arctic-2.
Novatek owner Timchenko has transferred 19% of Novatek from his investment vehicle Volga Group to neutral company ENA Invest created in November 2017. Timchenko’s share in the company remains at 23.49%. BCS Global Markets on July 12 commented that the move will be neutral for Novatek's shares, as the shareholder structure remained the same.
Russian private oil major and the country's second-largest oil producer Lukoil said it will buy out and cancel 100.6mn treasury shares or 11.8% of its equity at a price of RUB3.95 ($0.06) per share, the weighted average price on the Moscow Exchange over the period January 1 to June 30. Lukoil, with many operations abroad, recently came into investors’ focus by catching up with the capitalisation of Russia's state energy giants Gazprom and Rosneft , despite having smaller output and resource base. In addition to the treasury shares operation, Lukoil reported the start of execution of two other strategic initiatives: using the remaining 40mn treasury shares in an equity participation programme for the key employees of the company and buying back shares on the open market (details are to be finalised by September 2018), VTB Capital added on July 20. "The combination of cancelling 100mn treasury shares in 2018 (with the rest to be used as an employee incentive programme) and announcing a $3bn buyback plan over the next five years is supportive for the company’s corporate governance practices," VTB argues.
Russian state natural gas giant and pipeline export monopolist Gazprom held an annual general shareholder meeting on June 29, at which the
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