Page 18 - FSUOGM Week 42 2021

FSUOGM PROJECTS & COMPANIES FSUOGM

Rosneft closes Vostok Oil share

sales to traders

RUSSIA RUSSIAN state oil major Rosneft has closed a gas (GHG) emissions. Vostok Oil’s facilities will
deal to bring on board two more investors at its also be supplied from electricity generated from
Rosneft has touted the giant Vostok Oil project in the Russian Arctic, burning associated gas that would otherwise be
project's low lifting costs the company said on October 14. flared, and using wind farms.
and clean production. The company has sold a 5% stake in the 6bn Rosneft is pinning its hopes on Vostok Oil,
barrel oil development to a 75:25 joint venture a group of oilfields in the country’s far north, to
between trading groups Vitol and Mercantile & maintain production over the coming decades as
Maritime. This follows its divestment of a 10% its older deposits further south mature. Analysts
stake to Trafigura last December. have likened the project’s scope to the develop-
“We are glad that a consortium of Vitol and ment of the Western Siberian oil basin in the
Mercantile & Maritime Energy has joined our 1970s and the development of the Bakken tight
flagship project,” Rosneft CEO Igor Sechin com- oil play in the US over the past decade. Rosneft
mented. “Vostok Oil has a sustainable economic estimates that Vostok Oil will be flowing 1mn
model, which received positive assessments of barrels per day of oil by 2027 and as much as 2mn
international experts. Logistical advantages, bpd in 2030. But the company and its partners
vast resource potential, and the high quality of are yet to take a final investment decision (FID)
oil make Vostok Oil one of the most attractive on development.
investment projects in the global energy sector.” Rosneft also notes that the project boasts
Amid heightened scrutiny of the climate low lifting costs, and its location in between the
impact of new oil and gas developments, Ros- European and Asian markets gives it a logistical
enft has been keen to tout Vostok Oil’s low emis- advantage. But whether or not European cus-
sions. Its oil has a very low sulphur content of tomers will take its oil will depend on whether
only 0.01-0.04%, which makes it both more val- the EU bans the purchase of oil and gas produced
uable and limits the need for sulphur processing in the Arctic, as has been proposed by the Euro-
plants, which in turn will reduce its greenhouse pean Commission. ™

NEWS IN BRIEF

RUSSIA The company first obtained concessions Libyan officials and a review of security
for fields in the Ghadames basin, which is conditions. The latest meeting between the
Tatneft resumes oil believed to hold more than 3.5bn barrels parties took place in early October and
of oil in recoverable reserves, in October
was attended by Abu Algasim Shingeer, a
exploration in Libya’s 2005. It then signed production-sharing member of NOC’s board of directors, and
Albert Saviolin, the CEO of Tatneft’s Libyan
agreements (PSAs) for three more fields in
Ghadames basin the Ghadames and Sirte basins in December subsidiary.
2006. Altogether, its acreage in Libya covers
Russia’s Tatneft, in co-operation with Libya’s an area of about 18,000 square km.
National Oil Corp. (NOC), has resumed After carrying out some exploration Transneft could shut down
exploration drilling in the country after work at these sites, the company suspended
a 10-year hiatus. This move makes the its activities in 2011, pending a resolution Belarus subsidiary
company, which is based in the Russian of the Libyan civil war. It attempted to
internal republic of Tatarstan, one of the return in 2014 so that it could collect Russian state-controlled oil pipeline
first foreign oil operators to return to Libya. seismic data from a 200-square km area operator Transneft could shut down the
As of last week, Tatneft had already sent in Ghadames but soon departed because operations of its Belarusian subsidiary
a team to drill the B-82-4 exploration well at of a deterioration in security conditions. Zapad-Transnefteproduct could halt
Al Hamada, a site in the Ghadames Basin in Subsequent attempts to resume exploration operations within several weeks due to the
western Libya. The Russian company sank work did not make much headway, but deteriorating economic conditions such as
the well to a depth of about 3,900 feet (1,190 Tatneft representatives said repeatedly that increasing tax rates and "other initiatives
metres) before it suspended work at the site the company was committed to remaining introduced by the Belarusian state", RBC
in February 2011. It now aims to drill to active in Libya. business portal reports citing the CEO of
a target depth of 8,700 feet (2,650 metres) According to local press reports, the Transneft Nikolay Tokarev.
and expects to complete the well in about Russian operator made the decision to Zapad-Transnefteproduct is the
45 days. resume work after multiple discussions with subsidiary of Transneft that transports

P18 www. NEWSBASE .com Week 42 20•October•2021