Page 89 - RusRPTJuly18

9.2 Major corporate news 9.2.1 Oil & gas corporate news
Russia's largest oil company Rosneft will not lose contracts with the troubled private Chinese energy major CEFC , Vedomosti d aily said on June 12 citing unnamed sources close to the deal. Earlier this year CEFC had to pull out of the privatisation deal with Rosneft , cancelling the acquisition of 14.16% in the company for $9.1bn. But the trading deal of acquiring 10mn tonnes of crude oil annually from Rosneft for five years will be maintained and restructured. Reportedly a trading subsidiary will be extracted from CEFC, which will carry through the Russian oil supplies contracts to a new owner, possibly state conglomerate CITIC Group that already acquired part of CEFC's assets. Another possible buyer is the petrochemical and textile major Hengli Group. Rosneft is currently the largest Russian supplier of oil to China, accounting for 76% of oil exports to the country. In 2017 the company supplied 40mn tonnes of crude to China. Asian market accounts for 19.7% of Rosneft's oil supplies (47.7mn tonnes) and 15% of revenues (RUB955bn or $15.3bn). Analysts surveyed by Vedomosti b elieve that the risk of losing the oil supplies contract was minimal, and welcome Rosneft's expansion in China, which is seen as growing energy consumption market with stagnating domestic extraction.
Russia's second-largest natural gas producer Novatek has signed a memorandum of understanding with South Korea's Kogas on collaboration in developing future LNG projects , according to Kommersant daily. Novatek has ambitious liquefied natural gas (LNG) development plans. Reportedly, Kogas agreed to consider entering the future Arctic LNG-2 project, as well as to participate in the Kamchatka transshipment project and other infrastructure initiatives of Novatek.
Two members of the US Congress have requested the US Treasury Secretary Steve Mnuchin and the Secretary of State Michael Pompeo to consider including Russian billionaire Vladimir Yevtushenko and his multi-industry investment conglomerate AFK Sistema in the sanctions list, Vedomosti d aily reported on June 22. Reportedly, the shade is thrown on Yevtushenko for participating in large-scale investment and construction projects in the annexed Crimea peninsula.
Russia's second-largest gas producer and emerging liquefied natural gas (LNG) market leader Novatek is searching for more tankers to transport LNG as its production volumes increase, Kommersant daily said on June 18. In May Novatek established MAT, its own transportation subsidiary , (Morskoy Arktichesky Transport, or Sea Arctic Transport in English), to manage its fleet of tankers and icebreakers delivering LNG from its major projects. Now, the company reportedly took Gazprom's LNG tanker Pskov in a sub-charter and is negotiating with Japanese NYK over eight-month freight contract for the Grace Dahlia LNG carrier with a low ice class Ice2. Novatek, which financed and launched its first major LNG project Yamal despite Western sanctions , plans another Arctic-2 LNG project and has adopted an ambitious strategy for LNG growth through 2030 . Novatek's ambitious plans for LNG projects in the Arctic region, with total LNG capacity rising to 55-57mn tonnes in 2030, might require
RUSSIA Country Report July 2018 www.intellinews.com