Page 15 - FSUOGM Week 08 2021

FSUOGM PROJECTS & COMPANIES FSUOGM

Novatek transfers Russian

field to Total JV

RUSSIA RUSSIAN gas supplier Novatek has sold its Chernichnoye is situated near infrastructure
100% stake in the Cherichnoye oil and gas field and assets held by Terneftegaz, including the
Novatek acquired the to its joint venture with France’s Total, Terneft- Termokarstovoye field, which produces at a rate
deposit in 2018 as part egaz, according to company results published on of 2.4bn cubic metres per year of gas and 0.8mn
of a buying spree in February 17. tonnes per year of condensate. Termokarstovoye
Russia. The deal was worth RUB730mn ($9.9mn) entered production in 2015 and holds 47.3bn
and was closed in the fourth quarter, Novatek cubic metres of gas and 10.3mn tonnes of liquids
said in its 2020 results report. Chernichnoye, sit- in ABC1+C2 reserves.
uated in the Yamalo-Nenets region of Western Terneftegaz has been under the US sanc-
Siberia, has 179mn barrels of oil equivalent in tions regime since December 2016. Its fields
C1+C2 reserves. are far removed from Novatek’s liquefaction
Novatek acquired the deposit from resources projects on the Yamal and Gydan peninsulas,
group Mangazeya, owned by Sergey Yanchukov, and therefore could not be used to produce
in January 2018, paying RUB616mn. It was fore- additional LNG.
cast back then that its gas output would reach Terneftegaz is 51%-owned by Novatek and
500mn cubic metres per year by 2022. Novatek 49% by Total. The pair are also partnered at the
was on a buying spree at the time, seeking to bol- Yamal LNG and Arctic LNG-2 projects, while
ster flagging production levels at the fields it uses Total's Russian activities also include the Khar-
to supply the Russian market. yaga production-sharing contract. ™

NEWS IN BRIEF

RUSSIA "The law on emissions is one of the to install new secondary processing
documents that is currently under units at refineries, such as catalytic or
Russia's government eyes consideration to allow Russia to align its hydrocracking, delayed coking, reforming
and isomerisation, in order to be able to
policies with the Paris Climate Agreement,"
law on emissions VTB Capital (VTBC) reminded on sign such an agreement.
February 18.
The ministry hopes that such measures
The Russian government is considering The news is seen as supportive by VTBC would boost new modernisation projects
a law on reducing C02 emissions in the analysts, confirming that the legislation with a total investment of more than
country, which would set mandatory CO2 is moving on, while the statement on the RUB200bn ($2.7bn).
reporting standards and tools to undertake possibility of a CO2 trading system suggests "Under the agreement on the protection
carbon reduction projects with clear follow- that this option is still being considered in and encouragement of investments,
up, according to Interfax. the longer term. companies are guaranteed that the key
In the meantime, Deputy Minister of "Along with the development of the conditions of doing business (such tax
Energy Pavel Sorokin said that Russia might green certificates mechanism, this implies payments or land use conditions) will
launch a nationwide CO2 trading system, that Russia is looking to become greener not be amended during the next 6-20
similar to the EU’s ETS system, and would and potentially get ready for the EU carbon years, and there is also provision for the
also consider expanding the Sakhalin pilot tax," VTBC analysts believe.. reimbursement of the costs of creating
project experience to other regions of the infrastructure," VTB Capital (VTBC)
country. commented on February 16.
As reported by bne IntelliNews, Russian Russian EconMin to VTBC analysts note that such guarantees
state energy policy is focusing more and might be somewhat positive for new
more on ESG, as Russia belatedly prepares propose oil refinery projects, but doubt that they will stimulate
to tackle the EU carbon tax introduction new modernisation programmes among
and other "green" challenges. modernising plan Russian oil names.
Recent reports suggest several initiatives "There is already support for new
are being developed at the same time, such Russia's Ministry of Economic Development modernisation projects in the form of a
as green certificates, a greenhouse gas has drawn up a draft degree allowing oil 1.3x co-efficient to negative excise for such
(GHG) emission reduction strategy, and companies to modernise their refineries refineries. Overall, we see the news as not
an energy efficiency policy. Major state- under an agreement on the protection and market-moving for the sector," VTBC
controlled (Rosneft) and private (Lukoil) oil encouragement of investments, according to analysts believe..
and gas majors are pledging to deliver green Vedomosti report.
strategies. Reportedly, oil companies might have

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