Page 12 - FSUOGM Week 30 2021

FSUOGM NEWS IN BRIEF FSUOGM

RUSSIA equity), but a more detailed structure has also edged down in May from April.
not been disclosed." Russia’s compliance with the OPEC+ oil
Totalenergies buys 10% in output deal was at close to 100% in May,
which means the state is about to exceed its
LNG terminal operator from Yatec says EBITDA rises target in June.
Russia’s energy ministry did not
Novatek 26% to RUB2.4 bn in Jan– immediately reply to a Reuters request for
comment.
France's Totalenergies, formerly known as Jun Two industry sources said that lower
Total, has closed a deal to buy 10% in Arctic output levels may be due to technical
Transshipment, whose LNG terminals Earnings before interest, taxes, depreciation issues some Russian oil producers are
are currently under construction, from and amortization (EBITDA) of Russia’s experiencing with output at older oilfields.
Novatek, Interfax reported on July 26. Yakutsk Fuel and Energy Company (Yatec), Under a deal agreed by the OPEC+
Novatek now owns 90% of the company, part of A-Property company of businessman group of leading oil producers in March,
while Totalenergies owns the remaining Albert Avdolyan, increased by 26% on Russia’s production quota was allowed to
10%. The value of the deal was not the year to RUB2.45bn in January–June, rise by 130,000 bpd from April 1 to 9.379
disclosed. The charter capital of Arctic the company said in a statement on million bpd, excluding the output of gas
Transshipment is RUB50mn ($676,255). Tuesday without specifying the accounting condensate, a light oil.
Arctic Transshipment LLC, a subsidiary standards. In early June, when Brent climbed above
of Novatek, is the operator of two LNG “The key figures of the first half of the $70 per barrel, Russian Deputy Prime
transshipment facilities under construction year include an increase of revenue by Minister Alexander Novak said the oil price
in Kamchatka and the Murmansk Region. 23% to RUB4.4bn, of EBITDA by 26% reflected the balance of supply and demand
The terminals are designed to ensure to RUB2.4bn, with the EBITDA margin and was “good enough” for Russia. Since
efficient transportation of LNG from Arctic reaching a record of 55.3%. Yatec’s then Brent has risen some $5 per barrel to
LNG 2 and other Novatek projects by capitalization exceeded RUB80bn, which its highest since 2018.
transshipment from Arc7 ice-rated LNG is an 82% increase compared with the OPEC+ meets on Thursday this week
tankers to conventional vessels. Each of the company’s valuation at the beginning of the to discuss supply for later this year. The
terminals includes a 360,000 cubic metre year,” the statement read. group may discuss further boost in August,
floating LNG (FLNG) storage facility with All the budget figures for the period sources say. cubic metres of gas until 2025,”
two side-by-side transshipment points. overshoot the plan and hit a record for the Yatec said.
past five years. The company also managed
to finish several projects that should
Gazprom might collect state expand its resource base and production. Alexey Miller: “Gazprom has
In 2021, the company plans its capital
cash for GPP/LNG complex expenditures at RUB7.5bn, which will be always approached Nord
spent on geological exploration and major
Gazprom's gas processing and liquefaction construction works. Stream 2 as an economic
(GPP) complex in the Ust-Luga region, “As of the end of the second quarter of
which the natural gas giant is implementing 2022, the resource base will be expanded project”
in partnership with RusGazDobycha, by 185bn cubic metres of natural gas to 576
might be financed by funds provided by the bcm. The program of geological exploration “Gazprom has always approached Nord
Russian National Wealth Fund, Bloomberg works is being implemented at the majority Stream 2 as an economic project. Its goal
reported on July 23. of the license sites … Combined reserves of is to provide reliable, stable and diversified
The complex' capacity is 45bn cubic the company will be expanded to 1 trillion supplies of gas to the market of the
metres per year of gas processed and 13mn cubic metres of gas until 2025,” Yatec said. European Union. It also aims to reduce
tonnes per year (tpy) of LNG. The total sum the cost of gas for end consumers via a
of funding for the project could amount to shorter transportation route that reaches
RUB900bn ($12bn). Russia struggles to raise oil Germany almost 2,000 kilometers ahead of
"Back in 2019, the total capex for the the route traversing the gas transmission
project was estimated by the company output despite price rally: system of Ukraine, as well as to ensure
at more than RUB700bn," VTB Capital compliance with all current environmental
(VTBC) said in a research note. "The total Reuters sources requirements. For instance, СО2 emissions
cost of Amur GPP (with similar capacity to from Nord Stream 2 are 5.6 times lower
the GPP in Ust-Luga) was recently stated by Russian oil production has declined so far thanks to, among other things, a reduced
President Vladimir Putin [to be] more than in June from average levels in May despite a number of compressor stations compared to
RUB1 trillion, although Amur GPP also has price rally in oil market and OPEC+ output the Ukrainian route.
helium treatment facilities, and the Ust- cuts easing, two sources familiar with the It should be noted that Gazprom has
Luga project also includes an LNG plant on data told Reuters on July 26. always stressed its readiness to continue
top of the GPP." Russia’s oil and gas condensate was at transiting gas across Ukraine, including
"So the overall capex is likely to exceed 10.42 million barrels per day (bpd) during after 2024, based on economic viability and
the guidance provided in 2019," VTBC went June 1-27 compared to 10.45 million bpd in the technical condition of Ukraine's gas
on to say. "The company plans to finalise the May on average, the sources said. transmission system.
project financing in 2022 (70% debt: 30% Russian oil and gas condensate output The issues pertaining to new volumes

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