Page 128 - RusRPTOct23

the production of fuels and various other oil-based products, effectively matching the 2022 levels.
● Rosneft
The German Federal Network Agency will continue to have external control over the assets of Russia’s Rosneft in the republic for another six months, in continuation of the regime that began last year, the DPA news agency reported citing a source in the Ministry for Economic Affairs and Climate Action of Germany. In order to ensure the energy supply, the German government is extending the term of discretionary management of Rosneft Deutschland GmbH and RN Refining & Marketing GmbH on the basis of the law on energy security until March 10, 2024, the agency said. Previously, the external management scheme was set to expire in the middle of September.
● Novatek
The CEO of Novatek, the independent Russian gas company, Leonid Mikhelson, shared insights into the company's production and financial prospects during the Eastern Economic Forum on September 12.
Mikhelson stated that Novatek's gas production for 2023 is expected to remain nearly steady at around 82 billion cubic meters, with a slight increase compared to the previous year. He also noted a projected growth of 2–2.5% in the production of liquid hydrocarbons.
When discussing financial performance, Mikhelson revealed that Novatek anticipates revenue and net profit for 2023 to increase by approximately 25% compared to 2021. He emphasized the significance of comparing results with 2021 rather than 2022, as 2022 was considered an exceptional year due to circumstances in Europe that had significant impacts on the industry. In 2021, Novatek reported a net profit attributable to shareholders of 432.927 billion rubles, with total revenue reaching 1.157 trillion rubles.
Mikhelson also mentioned that Novatek had resumed liquefied natural gas (LNG) supplies to Finnish Gasum following a brief hiatus. Additionally, he highlighted that a substantial portion of Novatek's supplies to China are paid for in yuan, and there are no issues related to mutual settlements in national currencies.
Looking ahead, Mikhelson expressed optimism about negotiations with India in 2024, as India, along with Vietnam, is a priority market for Novatek. The company expects to make investment decisions on the Murmansk LNG plant in 2024 and the Obsky LNG project in the first half of 2024. Furthermore, Novatek has resolved all issues related to the maintenance of the Yamal LNG plant, ensuring its stable operation for several years.
128 RUSSIA Country Report October 2023 www.intellinews.com