Page 17 - FSUOGM Week 33

FSUOGM PROJECTS & COMPANIES FSUOGM

Sibur kicks off $11bn AGCC project

RUSSIA RUSSIAN petrochemical major Sibur has started RBC also noted that state development bank
the construction of the Amur Gas Chemical VEB.RF is considering co-financing Sibur’s pro-
Complex (AGCC), worth $10bn-11bn, in the ject for RUB280bn out of its total Far East invest-
Far East district, RBC business portal reported ment package of RUB1.6 trillion ($21.9bn),
on August 18. confirming previous reports.
China’s state-run Sinopec is expected to take a Sibur is the leader of the Russian petro-
40% stake in the AGCC project, with the Russian chemical industry and one of the largest com-
company noting: “As a national leader of the oil panies globally in this sector. It has more than
and gas processing industry, Sinopec boasts an 26,000 employees and the company’s unique
extensive distribution network in China for oil vertically integrated business model allows it to
and gas products of varying processing levels. create highly competitive products consumed
[China] remains the key driver behind global in the chemical, fast moving consumer goods
polymer consumption growth and is a target (FMCG), automotive, construction, energy and
market for Amur GCC.” other industries in 80 countries worldwide.
The plant is planned to be completed by The key shareholder is Leonid Mikhelson
2024-2025, with annual total capacity of (48.5%) – also one of the key beneficiaries of
2.3mn tonnes of polyethylene and 400,000 Novatek, Russia’s largest independent gas pro-
tonnes of polypropylene to be produced from ducer. Gennady Timchenko controls 17% of
3.5mn tonnes of liquefied hydrogen gas sup- Sibur’s equity; Sinopec and The Silk Road Fund
plied by state major Gazprom. each have 10%.™

Rosneft spuds wells in Kara Sea

RUSSIA RUSSIAN oil major Rosneft has started drill- that targeted a range Russian companies and
ing in the Kara Sea six years after it suspended banks. The sanctions were triggered following
its last upstream project in the area – a joint the annexation of Crimea from Ukraine.
venture with US super-major ExxonMobil – In related news, Sechin presented a bottled of
owing to US sanctions. “premium oil” from the West-Irkinsky field to
Rosneft CEO Igor Sechin said on August 18 Putin during their meeting.
that the company had spudded two wells in the The head of Rosneft said the oil had a sul-
Kara Sea, which lies in the Russian Arctic. The phur content of just 0.02% and was the first
executive’s comments were made during a tele- petroleum produced from West-Irkinsky’s
vised meeting with Russian President Vladimir 31st well. The field is located in Russia’s Kras-
Putin, during which the company’s operations noyarsk Krai. Sechin added that the oil was
within the context of the coronavirus (COVID- produced “without any additional stimulation
19) pandemic were discussed. during an exploration work”.
While Sechin did not provide any additional “This is a premium oil, one of the best in
details on the wells, the official TASS news the world, the best in the world,” Sechin told
agency said the company had recently begun Putin, who suggested that it was on par with a
drilling two wells at the Vostochno-Prinovoze- “Middle Eastern one”. Sechin responded that
melskiy 1 and 2 blocks near the Novaya Zemlya it was “even better”.
archipelago, which divides the Barents and Kara Sechin also noted during the meeting
seas. The blocks are estimated to contain up to that it would take Rosneft unit RN-Sakhal-
2bn tonnes (14.66bn barrels) of oil. inmorneftegaz up to two years before its
ExxonMobil pulled out of the joint venture production returned to traditional levels,
with Rosneft in the Kara Sea following the following efforts to cut output under the
implementation of Western sanctions in 2014 OPEC+ framework agreement.™

Week 33 19•August•2020 www. NEWSBASE .com P17