Page 12 - FSUOGM Week 28 2021

FSUOGM NEWS IN BRIEF FSUOGM

RUSSIA the company was aiming to issue another up 4.7% on the year-earlier period.
eurobond, possibly in euros, US dollars Novatek's production for the first half
Russian oil and gas make and Swiss francs. It also intended to issue as a whole totaled 314.7mn barrels of oil
equivalent, up 6.5% on year.
RUB150bn in perpetual bonds before the
20% of GDP versus 50% of end of the year.
export revenues premium to the outstanding GAZPRU Tatneft says may start to
The new issue offers a 20 basis points
Russian oil and gas sector (O&G) 30 (yield to maturity of 3.29%), while refine 100% of crude, stop
contributed 19.2% to the GDP in 2019 the longer-dated GAZPRU 34 trades at
and 15.2% in 2020 on low oil prices, RBC 3.70% YTM, BCS Global Markets analysts oil sales
business portal reported citing the first full estimated, while suggesting that the yield of
estimate of O&G sector's share in GDP by the new GAZPRU 31 may decline by 5-10bp Russian oil company Tatneft may refine all
RosStat statistics agency. In real terms O&G in the short term. crude it produces and abandon the sales
stood at RUB16 trillion ($215bn) in 2020. As reported by bne IntelliNews, of the raw material soon, President of
As followed by bne IntelliNews, the previously in January 2021 Gazprom issued the Tatarstan Republic and Chairman of
question of reducing Russian economy's a $2bn eurobond in London, and achieved the Board of Directors of Tatneft Rustam
dependency on oil and gas exports has a record-low rate not only for the company Minnikhanov said on July 9.
been discussed for decades, with the latest itself, but for any Russian issuer of bonds of "Tatneft has a cutting edge refinery for
Kremlin's take on diversification taking an over 5 years maturity. 15–16mn tonnes. We may stop selling
ESG focus. oil soon and start to refine it fully,"
But the share of O&G in the economy Minnikhanov said.
is not as large as it is commonly held, Russia’s gasoline reserves Tatneft’s oil output fell by 3.8mn tonnes
according to the latest RosStat estimates. to 26mn tonnes in 2020.
Notably, the share of O&G in GDP is much fall 2.4% in June 29-July 5
lower than the share of the sector in total
federal budget revenues (28% in 2020, Russia’s gasoline reserves contracted by Russian gas pumping to EU
down on low oil prices, and at about 40% 2.4% in the week from June 29 through July
previously) and in goods exports (stable 5 to 1.692mn tonnes, as seen by PRIME on across Belarus rise 25% in
above 50%, down to 44.6% in 2020 on July 9 the materials of the Energy Ministry’s
COVID-19 pandemic). CDU TEK dispatcher department. January-March
RBC notes that 15-20% GDP share Reserves of diesel fuel grewby 4.2% to
for O&G sector is in line with the global 2.68mn tonnes. The US needs to rethink its use of oil and
average (at 8% in the US, 14% in Norway, Gasoline supplies to the internal market other sanctions because the economic
30% in United Arab Emirates, and 50% in fell by 0.7% from June 30 through July 5 to pressure they have generated has pushed
Saudi Arabia). Analysts surveyed by believe 701,000 tonnes, while supplies of diesel fuel China, Iran, Russia and Venezuela into
that RosStat's methodology is adequate, and rose by 7.7% to 779,000 tonnes. Production strong trading partnerships with each
comparable to previous independent studies of gasoline shrank by 5.6% to 729,000 other rather than isolating the countries as
that also estimated 20% GDP share. tonnes, while the output of diesel fuel Washington intended, a Woodrow Wilson
RosStat estimated that upstream segment contracted by 0.3% to 1.358mn tonnes. International Center for Scholars panel of
(extraction, extraction services, primary international experts has concluded.
refining) accounted for 72% of the sector, James Bosworth, author of the Latin
and downstream (transportation, retail and Novatek Q2 hydrocarbon America Risk Report, was cited by S&P
wholesale trade of oil and oil products) for Global Platts as saying that the US has
28%.. production, sales volumes inadvertently created an "axis of the
sanctioned".
rose "We've pushed together the sanctioned
Russia's Gazprom places Novatek said July 13 that total hydrocarbon countries and given them a reason to create
an alliance and form financial ties ... that
$1bn Eurobonds to high production and sales volumes for the allow them to evade those sanctions,"
second quarter of 2021 rose on year.
he said. "Any individual country being
demand produced 156.6mn barrels of oil equivalent sanctioned could be punished, but together
The Russian energy company said it
they have the ability to conduct back
Russian natural gas giant Gazprom placed for the quarter, representing an increase trading."
$1bn worth of US dollar-denominated of 7.8% compared with the same period of The Biden administration is potentially
10-year Eurobonds, with the demand 2020. The company said second-quarter on the verge of removing US sanctions
exceeding $2.8bn and the coupon rate set at hydrocarbon production included 19.95bn on Iran's oil, petrochemical and shipping
3.5% versus the initially guided 3.875%. cubic meters of natural gas and 3.1mn sectors if it strikes a an agreement with
As followed by bne IntelliNews, tonnes of liquids--gas condensate and crude Tehran to rejoin the nuclear deal, or Joint
Gazprom's management has reduced its oil. Comprehensive Plan of Action (JCPOA).
initial borrowing plan for the year by The company said it sold 17.70bncubic
RUB100bn ($1.4bn) to RUB411bn, but meters of natural gas in the second quarter,

P12 www. NEWSBASE .com Week 28 14•July•2021