Page 147 - RusRPTSept22

liquids capacity. The project, which operates under a production-sharing agreement (PSA) is 20% owned by Rosneft, 30% by ExxonMobil, 30% by Japanese Sodeco, and 20% by Indian ONGC Videsh.
More an issue for local government revenues than for Rosneft: Net to Rosneft, the loss of production from Sakhalin-1 is 44kbd, or c1% of Rosneft’s pre- crisis 4mmbpd of output. However, for the local Sakhalin government, which reportedly derives about 1⁄4 of its revenues from taxes on the project. We expect that, as with Sakhalin-2, steps will be taken to restructure the ownership of Sakhalin-1 and transfer operatorship to Rosneft or another company in agreement with existing shareholders in the project, but that output probably won’t come back online until late 2022 or early 2023.
Uniper, the highest-profile corporate victim of Europe's energy crisis so far, reported a €12.3bn loss ($12.5bn) due to Russian gas supply cuts, saying it had become a "pawn" in the energy standoff between the European Union and Moscow. Germany's largest importer of Russian gas needed a 15bn euro government bailout last month after Russia drastically cut flows, forcing Uniper to buy gas elsewhere at much higher prices.
Exiting Russia remains “one of the main priorities in the near future” for Fortum, Interfax reported citing the CEO of the company Markus Rauramo and company’s investor presentation. As followed by bne IntelliNews, Finnish renewable energy major Fortum is rushing the sale of its Russian assets, including Unipro Russia, and is collecting bids from major local bidders. Rauramo confirmed to Interfax that there were potential bidders for Unipro Russia already, without specifying or providing a valuation. BCS Global Markets reminds that under a presidential decree deals involving oil/gas/power companies are prohibited until the end of 2022. It is not clear whether Unipro is included in the list, however. Given that a core shareholder is important for Unipro’s future, the analysts will continue to “keep an eye on this development”, but see Fortum’s determination to exit as negative for the name. “It may sound strange, but a block on sale could be in fact the best scenario for Unipro minorities for the time being, as it will reduce the chances of an abrupt exit,” BCS GM analysts commented. Fortum controls 98.23% in Fortum Russia, 30% in TGK-1 generation company, whose main shareholder is GazpromEnergoHolding of gas giant Gazprom. Through a 73.4% stake in German Uniper, Fortum indirectly owns 88.73% in Russian renewable energy major Unipro. Fortum and Unipro operate 12 generating assets in Russia with a total capacity of 15.5 GWh. Even prior to the military invasion of Ukraine, Uniper was considering selling its subsidiary Unipro Russia, with SUEK coal major and Siberian Generating Company and state utility holding InterRAO cited as potential buyers.
147 RUSSIA Country Report September 2022 www.intellinews.com