Page 11 - FSUOGM Week 47 2021

FSUOGM PROJECTS & COMPANIES FSUOGM

Novatek launches another

West Siberian field

RUSSIA RUSSIA’S Novatek has brought on stream He added that in addition to Novatek’s focus on
another field at the North-Russkiy cluster, one of ramping up LNG exports, maintaining gas flow
its flagship projects in Western Siberia, the com- to the domestic market was another of its strate-
pany announced on November 17. gic priorities.
The Kharbeyskoye field will produce 3.6bn “We are continuing to develop the
cubic metres of gas and 0.6mn tonnes per year North-Russkiy cluster, which plays an important
(tpy) of condensate at full capacity, Novatek said. role in our strategy,” he said.
Its launch comes after Novatek commissioned Commenting, analysts at BCS Global Mar-
the first North-Russkiy field, North-Russ- kets (BCS GM) said the start-up was “a nice
koye, in December 2019, followed by a second, addition to maintain the production base
East-Tazovskoye, in Augusut 2020. A fourth that would likely help offset declines at more
and final field in the cluster awaiting launch is mature fields rather than led to production
Dorogovskoye. growth.”
Together, it is expected that the fields will “Novatek has an impressive resource base,
produce 13 bcm per year at peak capacity, all both within its core, historic production region
of which will be supplied to domestic indus- of West Siberia as well as on the Gydan and
trial clusters. The cluster is far removed from Yamal peninsulas,” BCS GM said. “We expect
Novatek’s LNG projects further north. such announcements to be made roughly annu-
“The Kharbeyskoye field launch will make a ally going forward as the company looks to
significant contribution to Novatek’s natural gas maintain core output and while growing LNG
and liquid hydrocarbon production volumes,” production from its massive resources on the
company CEO Leonid Mikhelson commented. Yamal and Gydan peninsulas.”™

NEWS IN BRIEF

RUSSIA The analysts suggest focusing on the the analysts.
current level of idle oil production and, BCS Global Markets also commented
Russian oil major Gazprom assuming continued OPEC+ monthly that "surprisingly strong dividend
recommendation hints at good 3Q21" to be
production increases, the exhaustion
Neft posts $11bn revenues in potential of the idle capacity. BCS GM published on November 18. The analysts
also questions Gazprom Neft's production
that previously expected RUB40/share to
3Q21 possibilities beyond 2022. be paid on the full year of 2021 now see the
forecast as too conservative and reiterate a
Russian oil major Gazprom Neft (oil arm Buy call on Gazprom Neft's shares.
of gas giant Gazprom) posted RUB824bn Russian oil major Gazprom
($11bn) of revenues under IFRS in 3Q21,
EBITDA of RUB241bn ($3.3bn), and net Neft surprised with 9M21 Rosneft plans to expand oil
income of RUB140bn ($1.9bn), with the
earnings beating the expectations by 13%. dividends terminal in Beirut port
This week the company has surprised
the analysts with generous 9M21 interim The board of Russian oil major Gazprom Russian oil giant Rosneft plans to expand
dividends, which set the expectations for Neft (oil arm of gas giant Gazprom) has an oil storage terminal at the port of Beirut,
strong results in 3Q21. recommended a dividend of RUB40 ($0.55) Russian Foreign Minister Sergei Lavrov told
Gazprom Neft posted a free cash flow of per share for 9M21, exceeding expectations. reporters after a meeting with his Lebanese
$2.5bn in 3Q21, soaring by 235% versus the Gazprom Neft distributes at least 50% of counterpart on November 22.
average of the previous six quarters, while IFRS adjusted net income to shareholders, “A big project is being implemented
the operating cash flow was at $3.8bn. The Sberbank CIB reminds, estimating that the by Rosneft, which owns an oil product
strong FCF reading and higher EBITDA expected dividend should have amounted terminal in the port of Beirut,” Lavrov said.
improved Net debt/EBITDA leverage to to RUB38 per share. The analysts see the “There are already plans to modernize
0.32x versus the 0.6x of 2Q21 and the 1.1x generous recommendation as "an indication and expand this terminal. Today we have
average of the previous six quarters. that Gazprom Neft expects even stronger discussed with our colleagues what steps
BCS Global Markets commented that financials than we do for 3Q21", while should be taken to prepare the ground to
the results have exceeded the expectations estimating a dividend yield for 9M21 at 8%. start the activities as soon as possible.”
and reiterated a Buy call on Gazprom Neft's Previously in 2Q21 Gazprom Neft posted
shares. strong financials, which were welcomed by

Week 47 24•November•2021 www. NEWSBASE .com P11