Russia 100715 Basic Political Developments

RIA: Transneft to discuss Burgas-Alexandroupolis oil pipeline with Bulgaria

http://en.rian.ru/world/20100715/159819566.html
10:45 15/07/2010

MOSCOW, July 15 (RIA Novosti) - Russia's oil pipeline monopoly Transneft is to hold talks with Bulgaria on Thursday on the Burgas-Alexandroupolis oil pipeline project.

Earlier Bulgaria said it may withdraw from the project because of environmental concerns and doubts about the project's profitability. The country has not invested in the project since the summer of 2009, when Boyko Borisov, the leader of the right-wing Citizens for European Development of Bulgaria party, became the country's prime minister.

In June Borisov said Bulgaria was withdrawing from the project, but later said the final decision had not yet been made.

Transneft CEO Nikolai Tokarev said that the company had not yet received any information on Bulgaria's decision to withdraw.

The Burgas-Alexandroupolis pipeline, a project between Russia, Greece and Bulgaria, is to pump Russian and Caspian oil from the Bulgarian Black Sea port of Burgas to the Greek Aegean port of Alexandroupolis. The three countries signed an agreement to build the 280-km (174 mile) Trans-Balkan pipeline in 2007, following several years of talks.

Russia's state-controlled oil producer Rosneft, Transneft, and energy giant Gazprom will hold a total of 51% in the project, while Greece and Bulgaria will control 24.5% each.

Tokarev said Bulgaria does not intend to repay the construction expenses it owes if it withdraws from the project. The country, owes $7 million for its part in the joint venture and an additional $12 million for preparations for the project.

Reuters: UPDATE 1-JKX says Russian well test results far exceed own view

http://af.reuters.com/article/energyOilNews/idAFSGE66E0A320100715
Thu Jul 15, 2010 7:14am GMT

* Well flows at 22.6 MMcfd gas

* Sees higher well productivity boosting project economics

* Shares up 2.6 pct (Adds details)

July 15 (Reuters) - Oil and gas producer JKX (JKX.L) said on Thursday test results from its second gas well in Russia's Koshekhablskoye field far exceeded its expectations.

The Russia- and Ukraine-focused company said Well 20 flowed at a stabilised rate of 22.6 million cubic feet per day of gas (MMcfd) and an estimated 25 barrels per day of condensate.

The increased productivity of the well would improve both economics and booked reserves of the Koshekhablskoye project, the FTSE 250 company added.

The company has 10 wells in the Koshekhablskoye field, which it acquired in 2007.

In October, JKX's first well in the area -- Well 27 -- was tested at 13 MMcfd, significantly ahead of the rates expected during its acquisition. [ID:nL6215829]

Shares of the company were up 2.6 percent at at 296 pence at 0711 GMT on the London Stock Exchange. (Reporting by Aditi Samajpati in Bangalore)

Reuters: Novatek eyes 49 pct in Yamal for foreigners-paper

http://af.reuters.com/article/energyOilNews/idAFLDE66E05H20100715
Thu Jul 15, 2010 6:19am GMT

MOSCOW July 15 (Reuters) - Russia's largest independent gas producer Novatek (NOTK.MM) is looking to offer a 49 percent stake in developing the country's biggest liquefied natural gas (LNG) project to a foreign partner, Kommersant reported on Thursday.

"The following structure is planned -- 51 percent will belong to the Russian side, 49 percent to the three-four foreign partners, which will ensure the technical and financial support of the project," Evgeny Kot, Deputy chairman of the Management Committee and Director of LNG Project Department, was quoted as saying.

French oil major Total (TOTF.PA), Royal Dutch Shell (RDSa.L) and other international companies have expressed interest in joining the potentially lucrative Yamal LNG project.

Novatek's chief executive Leonid Mikhelson told Reuters in an interview earlier this month that the company can for now do without a foreign partner. [ID:nLDE66616N]

Novatek bought into Yamal LNG last year, when it acquired 51 percent of the company, which holds the right to develop Yamal's South Tambey fields, with resources estimated at 1.3 trillion cubic metres.

Volga Resources, a firm controlled by trader Gennady Timchenko, Novatek's biggest stakeholder, holds 24 percent of Yamal LNG, while Gazprombank holds 25 percent. (Writing by Toni Vorobyova)

RIA: Russia's Novatek ready to sell 49% stake in Yamal gas project - paper

http://en.rian.ru/business/20100715/159819777.html
10:58 15/07/2010

MOSCOW, July 15 (RIA Novosti) - Novatek, Russia's largest independent gas producer, is ready to sell a 49% stake in the Yamal liquefied natural gas project in Arctic Russia to foreign partners, business daily Kommersant reported on Thursday.

Novatek, which holds the license to develop the giant South Tambei gas field on the Yamal Peninsula with reserves of 1.26 trillion cubic meters of natural gas and 51.6 million metric tons of gas condensate, confirmed to Kommersant that it was holding negotiations with all interested foreign companies.

"The project is expected to have the following structure: 51% will belong to the Russian side while 49% will be held by three or four foreign partners, which will provide financial and technological support to the project," the paper quoted Yevgeny Kot, director of the Novatek department for LNG projects, as saying.

Novatek intends to select two major foreign partners and one or two second-tier companies guaranteeing sales markets, an official of a foreign bidder in the project told Kommersant.

So far the British-Dutch energy giant Shell, U.S.-based ExxonMobil and ConocoPhillips, France's Total and GdF SUEZ, Japan's Mitsui and Mitsubishi, Spain's Repsol and India's ONGC have filed their bids for participation in the project, the paper said.

Novatek's shareholders Gennady Timchenko and Pyotr Kolbin intend to sell 25% and 23.9%, respectively, of their stakes in the project. After the sale, Novatek will retain a controlling 51% stake in the Yamal LNG project, which it purchased from Gazprom for $650 million last year, the paper said.