Page 116 - RusRPTNov22

9.2 Major corporate news 9.2.1 Oil & gas corporate news
● Gazprom
Gazprom reduced gas production by 17% over the last three quarters; exports fell by 40%. Russian Gazprom produced 313.3bn cubic metres of gas in January-September 2022, 17.1% (64.8bn cubic metres) less than last year. At the same time, exports to foreign countries fell by 40.4%, or 58.9bn cubic metres during the specified period to 86.9bn cubic metres. As well, according to Gazprom, gas exports to China via the Power of Siberia gas pipeline are increasing within the framework of a long-term bilateral contract between Gazprom and the CNPC.
Russian gas giant Gazprom’s board of directors has approved a revised investment program of 1.98 trillion rubles for 2022, the company said in a statement on Tuesday in its Telegram channel. The total volume of investments was increased by 222.061bn rubles compared to the original program approved in December 2021. Capital expenditures are now planned at 1.746 trillion rubles.
The government may reclaim the 7tcm Tambey Cluster from Gazprom, opening the possibility that Novatek could wind up with the asset, reports Kommersant. Initially, however, the state would reclaim the 3 main field into the unallocated fund, and any redistribution might involve splitting them up and redistributing them to different operators. The Tambey Cluster of fields is located in close proximity to Novatek’s Yamal LNG project, and thus would serve as an excellent resource base for significantly expanding Novatek’s LNG production. Indeed, Novatek has tried in the past to gain control over the asset, the last time in 2021. However, Gazprom, which originally received the relevant exploration and production licenses in 2008, has so far managed to retain control of them, partly by transferring the fields into a JV with Rusgazdobycha as a part of the Ust Luga gas chemical and LNG project and planning to start the production in 2026, before licenses’ 2028 deadline.
BSC GM DDM-based TP for Gazprom Neft falls 14%, from 560/ADR to 480/ADR, and we maintain our rating at BUY. The situation in the oil business has been improving in recent months, with the Urals-Brent discount falling from $40/bbl in April to less than $20/bbl in August. Peer companies, even parent Gazprom, are again paying dividends in accordance to full dividend policies. On the negative side, the upcoming European oil and product embargoes will likely temporarily decrease exports and increase the Urals-Brent spread again. Growth drivers
116 RUSSIA Country Report November 2022 www.intellinews.com