Page 14 - FSUOGM Week 43 2019

FSUOGM
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the euro in settlements with counter parties,” he said, according to Vedomosti.
October 25 2019
Lukoil doubles RAS profits in 9M-2019
The net profit of Russian oil major Lukoil doubled year on year to RUB209.28bn in January–September, according to Russian Accounting Standards (RAS), the company said on October 27.
Sales revenue minus value-added
tax (VAT) and excise duties doubled
to RUB242.1bn, as did gross profit to RUB227.78bn. Sales profit more than doubled to RUB206.2bn, while cost of sales dropped 7.6% to RUB14.33bn.
Long-term liabilities fell to RUB258.4bn as of September 30 from RUB278.5bn at the end of 2018 and short-term liabilities fell to RUB732.68bn from RUB896.14bn.
October 28 2019
Gazprom finishes filling Power of Siberia with gas
Russia’s state-owned Gazprom has finished filling the main part of its 38bn cubic metre per year Power of Siberia pipeline to China with gas, ahead of its launch at the start of December.
Gas from the Chayandinskoye field in Yakutia feeding the pipeline has reached a metering station near the Chinese border, Gazprom said on October 29. The next step
will be to pump gas into Power of Siberia’s border section under the Amur River.
Gazprom began building the $55bn Power of Siberia after agreeing a contract with China’s CNPC in 2014 for gas supplies over a 30-year period. The contract was claimed to be worth $400bn, although the way in which gas was priced has never been revealed.
Gazprom is commissioning facilities at Chayandinskoye, due to flow 25 bcm per year of gas at peak capacity. It will supplement
this output with a further 25 bcm per year of production from the Kovyktinskoye field in Irkutsk, set for launch in 2023.
October 29 2019
Russia to offer MET
reductions at some Khanty-
Mansiysk fields
Russia’s finance ministry has drafted a bill
to deduct a mineral extraction tax (MET)
for oilfields in some regions of the Khanty- Mansisk region, Moscow-based Prime reported on October 28, citing a bill published online.
The MET will be deducted from January 1 2020 up until December 31 2029 for the companies that obtained their field licenses before January 1 2018. The tax break will only apply to fields with initial recoverable oil reserves of 1bn tonnes or more and is expected to raise oil production by 100mn tonnes per year, according to the bill.
To cover the budget revenue shortfall, the ministry plans to introduce MET of RUB385 rubles per 1,000 cubic metres of associated
gas.
The MET cut will benefit Rosneft,
which previously asked the government
for RUB46bn in annual tax relief at the Priobskoye field in Khanty-Mansiysk. It has secured similar support at Samotlor, another large deposit in the area.
October 29 2019
EASTERN EUROPE
Ukraine gas monopoly to
raise $500mn via Eurobond
placement
Ukraine’s natural gas monopoly Naftogaz is going to raise $500mn with a maturity of five to seven years via a new Eurobond placement following this year’s successful placement of Eurobonds totalling €600mn and $335mn.
The company’s meetings with investors will begin on October 30 and will be held in London, New York, and Boston.The placement’s organiser is Citi, according to an unnamed source quoted by news agency Interfax on October 28.
In July, Naftogaz successfully placed Eurobonds totalling €600mn and $335mn. Five-year euro-denominated bonds at 7.125% and three-year US dollar-denominated bonds at 7.375% were launched.
Naftogaz placed Eurobonds for the maximum amount approved by its shareholder, the Ukrainian government, and at “a rate below the approved ceiling”. The Eurobond issues do not carry a state
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Week 43 30•October•2019