Page 13 - FSUOGM Week 08 2020

FSUOGM PROJECTS & COMPANIES FSUOGM
Zarubezhneft eyes Indonesian block
RUSSIA
Zarubezhneft is mainly focused in Russia and Vietnam.
RUSSIA’S state-owned Zarubezhneft is report- edly eyeing an entry into Indonesia, having entered into talks with the UK’s Premier Oil on acquiring a stake in an offshore production-shar- ing contract (PSC) in the country.
Premier revealed last month it had signed a head of terms agreement with an unnamed investor to farm into the Tuna PSC. Under the deal, the investor would carry Premier for its share of the funding of a two-well appraisal cam- paign, according to the London-listed company. That investor is Zarubezhneft, the Russian firm confirmed to the Moscow-based Vedomosti newspaper on February 20.
Zarubezhneft already has exploration and production projects in Russia, Bosnia, Cuba and Vietnam. Its main focus is in Vietnam, where it is partnered with state-owned Petrovietnam. Vietsovpetro operates the country’s largest oil- field – Bach Ho – which is now nearing the end of its production cycle. The company’s other major project, the Kharyaga PSC in the Russian Arctic, is also mature, helping explain Zarubezh- neft’s drive to acquire new assets.
Premier was awarded operatorship and a 65% share of the Tuna block in 2007. Japan’s Mitsui Oil Exploration has a further 20% stake in the
project, while South Korea’s GS Energy owns 15%.
The partners drilled two wells in 2014, resulting in the Kuda Laut and Singa Laut oil and gas discoveries, assessed at 100mn barrels of oil equivalent (boe). In November 2017, Premier signed a memorandum with Indonesian upstream regulator SKK Migas covering the future sale of gas from Tuna to Vietnam.
Zarubezhneft is also vying for new projects elsewhere, but has encountered setbacks. The company applied for blocks in licensing rounds held in Ecuador last year but was unsuccessful. It had also hoped to develop oil in Iran, capitalising on the close political connection between Mos- cow and Tehran. But it pulled out of two projects it was intending to work at just over a year ago, because of US sanctions.
Zarubezhneft is currently being considered for an offshore oil concession in Oman.
Zarubezhneft had 74.8mn tonnes (548mn barrels) of proven oil at the end of 2019, accord- ing to an appraisal by Houston-based Miller and Lents. It produced 5.2mn tonnes (104,000 bar- rels per day, bpd) of oil in 2018 – the last year for
which it has published
output data. ™
tight compared to GAZPRU 34 (YTM 3.75%) with duration shorter by 1 year,” the analysts wrote.
Russian issuers had increased Eurobond placements in autumn 2019 and are also expectedtoborrowmoreactivelyinrublesin 2020 on lower rates.
February 20 2020
Rosneft sees logistical
problems after trading arm
sanctioned
Russia’s largest crude oil producer Rosneft is facing logistical problems with oil
and oil products exports following the
US sanctions of its trading arm Rosneft Trading, Reuters reported on February 22 citing industry sources.
As reported by bne IntelliNews, the US has imposed sanctions on Rosneft Trading for maintaining ties with Venezuela, but analysts saw the effect from the sanctions as limited. The trading arm accounts for just circa 1% of Ebitda of Rosneft, and
the oil major’s counterparties have until May 20 to close operations with Rosneft
RUSSIA
Gazprom and Novatek reshuffle 10% stake
Russian natural gas giant Gazprom plans to transfer is 9.99% stake in the country’s second- largest natural gas producer and LNG runner- up Novatek from a Cyprus fund Gazfin Cyprus Limited to Russian Gazprom Capital, according to Interfax.
The reshuffle was linked by the analysts to mitigation of risks from the renewed claims against Gazprom by the Ukrainian state gas company Naftogaz. As reported by bne IntelliNews, in the latest move Naftogaz now seeks $8bn from Russia in compensation for the seizure of its assets in Crimea in early 2014.
“In our view, Gazprom may be transferring assets to a territory that will be harder for Ukraine to reach in case Naftogaz becomes more active with its lawsuits,“ BCS Global Markets commented on February 18.
Should Gazprom consider selling the stake on the market in order to fund
its dividend pledges, Novatek will face pressure, despite the increase in the free flow, BCS GM warns, while seeing such
Week 08 26•February•2020
NEWS IN BRIEF
scenario as unlikely. BCS GM sees the news as neutral for both names having no impact on respective capitalisations at this point.
February 19 2020
Gazpromplaces$2bnworth of Eurobonds
Russian natural gas major state-controlled Gazprom placed 10-year Eurobonds worth $2bn on February 20. The company lowered the yield from the initially guided 3.625% to 3.25%, with the demand for the issue exceeding $5.5bn.
Notably, Gazprom went ahead with the placement and enjoyed high demand despite Ukrainian Naftogaz having recently stepped up legal pressure on its Russian counterparts.
As reported by bne IntelliNews, Gazprom was expected to issue $- and €-denominated Eurobonds, as at end-December the company had resolved its disputes with Ukrainian Naftogaz, which had prevented Gazprom from making Eurobond placements.
BCS Global Markets commented on February 18 that the high demand for the placement had been anticipated. “In our view, the YTM 3.25% of the new issue looks quite
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