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Miller noted that Gazprom was able to complete the project on schedule. It took less than six years to build. According to Vasily Orlov, governor of the Amur Region, the launch of the first stage of the Amur GPP is a historic moment for the region and will replenishes the regional budget, thanks to it, new production facilities and new jobs appear. Communications, road, rail and river infrastructure, social facilities, a residential neighborhood for employees are being built," he said.
Gazprom on June 1 reported operating statistics for 5m21. Non-CIS export volumes were up 27% y/y at 84.2 bcm, while domestic gas volumes increased 17% y/y (by 18.8 bcm) and gas production was up by 16% at 221.9 bcm. The strong growth in Gazprom's gas sales continued through May, even picking up slightly versus the interim update in mid-May. Total non-CIS exports (to Europe and China) rose 25% y/y in May, while European exports were up 20% y/y, close to the growth rates posted in February-April. Meanwhile, despite the solid growth in Gazprom export flows, the amount of gas in European and Ukrainian storage remains close to seasonal minimums. We highlighted in our recent Gazprom upgrade that, even if Gazprom gas exports were to remain flat y/y (close to the seasonal average) in 2H21 - which could be considered a conservative scenario given the low storage levels - the company's annual non-CIS export volumes would still be on track to recover this year and approach the 2018 record of 200 bcm (versus the company's guidance of 175-183 bcm and an actual 179 bcm in 2020). A combination of stronger gas volumes and higher prices support our forecast that Gazprom's DPS should nearly triple next year to R35 (for an expected yield of 13%).
Gazprom Neft and Novatek are to create a joint venture to develop the North-Vrangelevsky area (the licence is owned by Gazprom Neft), Kommersant reports. Novatek has agreed to buy 49% of Gazprom Neft Sakhalin, which owns the licence to develop the area. According to Kommersant’ssource, Novatek might pay RUB 1.6bn for it, including a part of the historical costs borne by Gazprom Neft. The area is located in the East-Siberian Sea and the Sea of Chukotsk, crossed by the Northern Sea Route, and might become the only offshore JV in the Arctic to operate, given that other projects have been frozen due to sanctions, according to the paper. The resources of the area are estimated at 16.6tcm of gas and 900mnt of gas condensate. Gazprom Neft was to conduct 2D and 3D seismic exploration in the area next year. The licence envisages the obligation to drill two exploratory wells and complete all exploration works by 2029, then decide in 2030 whether to continue work at the area.
Gazprom Neft Deputy CEO Vadim Yakovlev gave an interview to TASS. The key highlights were as follows:
The company has recovered almost two thirds of the crude production that it cut last year under the OPEC+ deal. It expects hydrocarbon output to reach 99.6mn toe this year (2 mboepd).
130 RUSSIA Country Report July 2021 www.intellinews.com