Page 116 - RusRPTNov19

9.2 Major corporate news 9.2.1 Oil & gas corporate news
● Gazprom
Gazprom affiliate Gazstroyprom (49% owned) reportedly plans to acquire 100% of Gazprom's largest subcontractor, Stroygazmontazh that belongs to Putin’s friend Akardy Rotenberg . The estimated value of the deal ranges from RUB70bn to RUB95bn ($1.1-1.5bn), according to RBC and Vedomosti sources. The transaction might be closed already in October, while Gazprombank is likely to provide financing for the deal, RBC reports. RBC also noted that Gazstroyprom might acquire other subcontractors, such as drilling contractor Gazprom Bureniye (transaction value estimates ranged from RUB47bn to RUB58bn ($0.7-0.9bn), according to RBC sources), as well as Stroytransneftegaz, the deal for which could be closed by year-end. Earlier, Gazstroyprom acquired another major subcontractor, Stroygazconsulting, therefore also keeping the asset off of Gazprom's balance sheet.
Russia’s Gazprom has struck a deal with Germany’s Linde on setting up a joint venture to design facilities for the processing and liquefaction of natural gas. The agreement, reached at the St Petersburg International Gas Forum on October 3, should help Gazprom obtain the technology it needs for a gas processing and LNG complex it plans to build on the Baltic Sea. The new joint venture will develop technological, design and engineering documentation for gas processing and LNG production facilities, Gazprom said in a statement. It will also provide servicing during the commissioning and operation of LNG plants. Gazprom’s only export plant in operation is a 10-11mn tonne per year facility on Sakhalin Island, where it is partnered with Royal Dutch Shell. Gazprom also wants to build a trio of smaller-scale LNG plants next to the Baltic Sea, the Black Sea and on the coast of the Russian Far East. The company started building the 1.5mn tpy Portovaya plan in the Leningrad region in 2016 and aims to launch production in 2020, it said in a presentation at the St Petersburg International Gas Forum on October 2. Gazprom has completed a feasibility study on another 1.5mn tpy terminal in Vladivostok, and aims to take a decision on a 0.5-1.5mn tpy facility on the Black Sea shore “hopefully soon”, according to the presentation.
● Rosneft
Russia's state pipeline operator Transneft has notified regional oil major Bashneft that its oil was in breach of norms for chlorine content in September, Reuters reported citing representatives of the company. Bashneft is a subsidiary of Russian oil giant Rosneft . As reported by bne IntelliNews, Rosneft and Transneft have engaged in high-stakes war of words over resolving differences over the consequences of the Druzhba pipeline oil contamination with chlorine earlier this year, as well as the overall regulation of oil transportation. The most recent reports claimed that Russian government will review the dispute between Rosneft and Transneft. In September Rosneft argued that Transneft has not yet resolved the issues with paying compensations and diluting the contaminated oil from Druzhba that has been pumped back to Russia. Rosneft suggests to toughen control over the quality of oil transported by Transneft, as well as to involve independent contractors. Transneft has adamantly rejected Rosneft's proposals, reiterating that it
116 RUSSIA Country Report November 2019 www.intellinews.o