Page 111 - RUSRptApr17

51.44bn ($0.9bn) due to December 2019, reports Kommersant . Gazprom states that the expansion is needed for the provision of future gas deliveries to customers in the Far East. According to the broadsheet's sources, the new capacity is intended for deliveries for the planned Far East Petrochemical Complex (FEPCO) and for the fertilizers’ production plant in Nakhodka.
Slovak gas transmission system operator Eustream announced on April 12 that it has signed a new contract with Gazprom on carrying Russian gas . The company, owned by the state and energy holding EPH, is one of the most exposed to Russian threats to halt sending gas exports bound for Europe through Ukraine. Eustream’s main business is transporting that Russian gas to Austrian hubs.
Rosneft is planning to spent RUB 250bn ($4.5bn) on exploration activities on the Arctic continental shelf in 2017-21, according to Vedomosti. Drilling of the first well on the Khatanga licence area in the Laptev Sea commenced in April.
So far, Rosneft and Gazprom Neft are leading the oil production cut, with five-month average daily production down 1.6% and 2.7%, respectively, compared with October 2016.
Gazprom Neft showed the steepest m/m decrease in oil output in February , 1.6%, and remained the leader in terms of both its production cut (-4.2% since October) and y/y growth (+8.6%). Surgutneftegas and Lukoil demonstrated drops of 0.9% MoM.
Oil production at Rosneft and Bashneft increased slightly m/m (0.1% and 0.4%). Tatneft reduced output 1.2% m/m (down 2.1% since October). Other producers’ oil production volumes decreased 0.7% MoM, and are up 0.3% since October.
In the gas sector, Gazprom once again showed good results, with gas production up 14% y/y , according to Interfax’s own calculations. Novatek’s standalone gas production has continued to slide in y/y terms, with an 8.1% decrease in March, and the trend is unlikely to change significantly until the launch of the Yamal LNG project in late 2017.
Gazprom doubled its profit in the fourth quarter of 2016 that came in at IFRS RUB242bn (€4bn), doubling the bottom line in the reporting quarter year-on-year. The net profit figure beat the RUB220bn expected by analysts surveyed by Reuters and is attributed to revaluation of Gazprom’s debt portfolio due to ruble strengthening and other currency gains. For 2016 overall, company’s net profit gained 21% to RUB952bn, which exceeded the Russian Finance Ministry's estimates of RUB893bn. Reuters estimated, however, that the company’s free cash flow in 2016 almost halved to RUB202bn from RUB390bn seen in 2015, while the revenues remained almost flat inching by 0.6% y/y at RUB6.1 trillion.
Rosneft has discussed a financial model and plan for developing the Far East Petrochemical Complex (FEPCO) with the Ministry of Energy , Vedomosti reports. At the first stage, Rosneft plans to spend RUB 657.8bn ($11.6bn) to build a refinery and RUB 129.3bn ($2.3bn) on infrastructure, including RUB 55bn ($1bn) to construct a marine terminal with capacity of 3.5mmt. The terminal is to be built by another investor (yet to be specified).
111 RUSSIA Country Report April 2017 www.intellinews.com