Page 13 - FSUOGM Week 32 2019

FSUOGM
NEWS IN BRIEF
FSUOGM
RUSSIA
Gazprom Neft uses new fracking mixture
Gazprom Ne has conducted hydraulic fracturing for the rst time using a new polyacrylamide-based mixture, enabling a 20% increase in well oil production, the company said on August 9.
e operation was undertaken at the South-Priobskoye eld in the Khanty-Mansiysk region of Western Siberia.
“ e company faces a serious challenge – to ensure the cost-e ective development of hard- to-recover oil reserves,” Gazpromne -Khantos CEO Alexei Kan said. “ e main driver of e cient oil production from low-permeability reservoirs is high-tech fracturing, which we are constantly improving.”
August 9 2019
Bashneft RAS profits slump 20% in H1
Net pro ts of Rosne ’s Bashne subsidiary under Russian accounting standards (RAS) fell 19.9% y/y in the rst half of 2019, totalling RUB35.036bn, the company said on August 9.
Revenues were up 1.9% at RUB348.341bn, while gross pro ts fell 3.1% to RUB103.912bn. Cost of sales increased by 4.6% to RUB244.107bn.
Bashne operates oil elds in the Volga- Urals, Timan-Pechora and Western Siberian petroleum basins, with its activities centred in the region of Bashkortostan.
August 9 2019
Russia’s largest
independent oil refinery
Antipinsky back online
e Antipinsky oil plant, Russia’s largest independent re nery, is on track to more than double its output this month following the suspension of its operations for more than two months, the plant’s head told Reuters.
e re nery, located in western Siberia, with an annual capacity of 9mn tonnes (181,000 barrels per day), temporarily halted oil processing in April through June amid nancial problems that led to the arrival of new owners and bankruptcy proceedings.
Maxim Andriasov, the re nery’s director
general, said the plant plans to process up to 550,000 tonnes of oil in August, up from around 200,000 tonnes in July.
bne IntelliNews, August 12 2019
Novatek posts impressive
margins for the Yamal LNG
despite weak markets
e Yamal LNG project of Russia’s biggest independent gas producer Novatek reported impressive 1H19 IFRS results on August 9.
“Pro tability remained impressively resilient despite a weak gas pricing environment and mostly spot LNG sales,” Sberbank CIB said in a
note.
Total estimated Ebitda from the project,
including the trading margin, stood at an impressive $5.0/MMBtu, according to Sberbank CIB, with LNG spot prices averaging $5.5-6.5/ MMBtu.
e overall project economics were virtually in line with the bank’s model assumptions despite much weaker gas market conditions in 2Q19-3Q19 and provide solid upside going into 2020-21 in light of a capacity utilization increase and a rising share of long-term oil-linked o ake.
“Meanwhile, we expect a substantial reduction in capex and pickup in shareholder loan repayment going forward,” Sberbank said.
Yamal LNG posted revenues of $2.3bn in 1H19, while Ebitda stood at $1.9bn, down just
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