LUKOIL's Polar Bears Are Lost In The Arctic
Joshua S. Hall • 32 Comments
Joshua S. Hall • 32 Comments
Tue, Aug. 16, 2:54 PM
- Russia's government says it is delaying plans to sell a stake in regional oil producer Bashneft, citing a weak market and the state’s plan to sell other assets this year, including nearly 20% of Rosneft (OTC:RNFTF), Russia’s largest crude producer; it is not known when a sale might take place.
- Russia had planned to sell as much as a 50% stake in Bashneft this year to increase budget revenue that has been depleted by weak prices for crude oil.
- Rosneft had been considering a bid for Bashneft, although Pres. Putin reportedly banned it from participating in the sale; Lukoil (OTC:LUKOF, OTCPK:LUKOY), Russia’s biggest non-state crude producer, also expressed an interest in buying a controlling interest.
Fri, Aug. 12, 10:40 AM
- Eni (E +0.1%) is talking to oil companies including Lukoil (OTCPK:LUKOY, OTC:LUKOF), Exxon Mobil (NYSE:XOM), Total (NYSE:TOT) and BP about selling at least a 20% stake in its giant Zohr gas field in Egypt, Reuters reports.
- Eni owns all of the field and has said it is interested in bringing in partners as part of its strategy of selling some of its prize acreage to help meet a target of raising €5B from asset sales over the next two years.
- Zohr, one of the largest gas discoveries this century, holds an estimated 30T cf of gas and has relatively low development costs; analysts have said a 25% stake in the field could fetch up to €2B ($2.24B).
Thu, Aug. 11, 9:43 AM
- Iraq's government has reached agreement with BP, Royal Dutch Shell (RDS.A, RDS.B) and Lukoil (OTCPK:LUKOY, OTC:LUKOF) to restart investment in oil fields the firms are developing that was halted this year, Reuters reports.
- The agreements effectively delay to H2 of the year projects that the three companies had planned to carry out in H1, which had been suspended because of low oil prices.
- BP has agreed to spend $1.8B this year at the Rumaila field it operates after initially agreeing last year to spend $3.5B, Shell agreed to spend $742M after proposing $1.5B, and Lukoil would spend $1.08B vs. $2.1B it had proposed last year, according to the report.
Tue, Aug. 2, 12:49 PM
- July monthly performance was: +4.14%
- 52-week performance vs. the S&P 500 is: +4%
- No dividends were paid in July
- Top 10 Holdings as of 6/30/2016: China Mobile Ltd (OTCPK:CHLKF): 3.82599%, China Construction Bank Corp H (OTCPK:CICHF): 3.7955%, Taiwan Semiconductor Manufacturing Co Ltd (2330): 2.77796%, Ambev SA (ABEV3): 2.34785%, Samsung Electronics Co Ltd (OTC:SSNLF): 1.94929%, CNOOC Ltd (OTCPK:CEOHF): 1.75845%, Gazprom PJSC ADR (OTCPK:OGZPY): 1.62779%, PJSC Lukoil ADR (OTCPK:LUKOY): 1.43969%, Mining and Metallurgical Company NORILSK NICKEL PJSC ADR (OTCPK:NILSY): 1.38151%, Wal - Mart de Mexico SAB de CV Class V (OTCPK:WMMVF): 1.11827%
Tue, Jul. 5, 7:45 AM
- Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM) and their partners say they will proceed with a $36.8B expansion of the Tengiz oil field in Kazakhstan - the biggest investment in new production since oil prices collapsed two years ago.
- The commitment is in addition to ~$37B already spent by operator CVX, XOM, Russia's Lukoil (OTCPK:LUKOY, OTC:LUKOF) and state-owned energy firm KazMunaiGas.
- The expansion will take Tengiz production up to 1M boe/day from ~800K boe/day currently, with first production from the expansion expected in 2022.
- Tengiz is considered one of the most profitable fields in the modern oil era, and some analysts estimate that it has brought CVX more than $70B in revenue and $40B in profits since 1993.
Fri, Jul. 1, 5:57 PM
- Chevron (NYSE:CVX) said this week in a presentation that the decision on expanding its Tengiz development in Kazakhstan will be made in mid-2016, which would essentially confirm a prediction made in May by the Kazakh energy minister.
- The project, which was put on hold last year after cost estimates ballooned amid plunging oil prices, may cost as much as $40B and add crude supply equivalent to that of the country of Libya.
- "This is very big and very important for Chevron and for Kazakhstan, [and] shows that the situation is now turning in the oil market that people are putting down this kind of money," says an analyst at the IHS consulting firm.
- Tengiz produced ~595K bbl/day last year, and the expansion will involve pumping sulfur-laden gas back into the rocks to force out an additional 250K-300K bbl/day.
- CVX has a 50% interest in the field that already accounts for nearly 20% of the company's total worldwide production; minority partners are Exxon Mobil (NYSE:XOM), Kazmunaigaz and Lukoil (OTCPK:LUKOY, OTC:LUKOF).
Fri, Jul. 1, 7:31 AM
- June monthly performance was: +5.09%
- 52-week performance vs. the S&P 500 is: 0%
- $0.12 in dividends were paid in June
- Top 10 Holdings as of 5/31/2016: China Mobile Ltd (OTCPK:CHLKF): 3.9717%, China Construction Bank Corp H (OTCPK:CICHF): 3.80475%, Taiwan Semiconductor Manufacturing Co Ltd (2330): 2.75233%, Ambev SA (ABEV3): 2.13524%, Samsung Electronics Co Ltd (OTC:SSNLF): 1.77648%, CNOOC Ltd (OTCPK:CEOHF): 1.76186%, Gazprom PJSC ADR (OTCPK:OGZPY): 1.67271%, Mining and Metallurgical Company NORILSK NICKEL PJSC ADR (OTCPK:NILSY): 1.47877%, PJSC Lukoil ADR (OTCPK:LUKOY): 1.33665%, Wal - Mart de Mexico SAB de CV Class V (OTCPK:WMMVF): 1.13755%
Mon, Jun. 6, 12:54 PM
- Russia's Lukoil (OTCPK:LUKOY, OTC:LUKOF) says its Q1 net profit tumbled 59% Y/Y to 42.8B rubles ($651M) on 18% lower revenue to 1.18T rubles because of lower oil prices, but results mostly beat analyst expectations.
- However, free cash flow was the weakest part of the Q1 report, falling 43% Y/Y percent to 36B rubles; Q1 EBITDA fell to 145B rubles
- Lukoil says it daily hydrocarbon production declined 0.6% Y/Y at 2.35M boe, as it ramped up production at its West Qurna-2 project in Iraq but output fell at its main Soviet-era fields in western Siberia.
Thu, Jun. 2, 8:10 AM
- May monthly performance was: -4.57%
- No dividends were paid in May
- Top 10 Holdings as of 4/29/2016: China Mobile Ltd (OTCPK:CHLKF): 3.79%, China Construction Bank Corp H (OTCPK:CICHF): 3.58%, Taiwan Semiconductor Manufacturing Co Ltd (2330): 2.53%, Ambev SA (ABEV3): 2.15%, Gazprom PJSC ADR (OTCPK:OGZPY): 1.86%, CNOOC Ltd (OTCPK:CEOHF): 1.75%, Samsung Electronics Co Ltd (OTC:SSNLF): 1.7%, Mining and Metallurgical Company NORILSK NICKEL PJSC ADR (OTCPK:NILSY): 1.45%, PJSC Lukoil ADR (OTCPK:LUKOY): 1.41%, Wal - Mart de Mexico SAB de CV Class V (OTCPK:WMMVF): 1.12%
Wed, May 25, 3:43 PM
- Russia's Lukoil (OTC:LUKOF, OTCPK:LUKOY) says it is in talks with Mexico's state-run Pemex over possible joint development of an onshore block in the country's Chicontepec basin.
- Lukoil says the discussions revolved around a potential joint project on the Amatitlan block, where it entered into a service contract with a 50% interest in July 2015, as well as its participation in forthcoming bidding rounds.
- The Amatitlan block in Mexico's Veracruz state is said to contain 993M boe in proven, probable and possible reserves.
Wed, May 25, 7:29 AM
- A Chevron-led (NYSE:CVX) consortium is set to invest up to $37B starting in 2017 as it increases output at the giant Tengiz oil field in Kazakhstan, the country’s energy minister tells Dow Jones.
- The investment would represent one of the first big commitments by a major oil company to spend on new production during the nearly two-year slump in crude prices.
- The Tengiz project is one of the world’s biggest oil fields and a key source for CVX’s growth in crude output in the next few years; CVX is the biggest partner in the field’s operator, with a 50% stake, while Exxon Mobil (NYSE:XOM) holds a 25% stake, Kazakhstan’s state-run oil company has 20% and a Lukoil-controlled (OTC:LUKOF, OTCPK:LUKOY) group owns 5%.
Wed, May 18, 11:22 AM
- Norway awards its first new oil and gas acreage in more than two decades, including an expansion into a new part of the Arctic Barents Sea in an area previously disputed with Russia in a bid to stimulate exploration.
- The government offered 10 drilling licenses to 13 different companies, including Chevron (CVX -0.3%), ConocoPhillips (COP +0.1%), Statoil (STO +0.1%), Lundin Petroleum (OTCPK:LNDNF) and Russia's Lukoil (OTCPK:LUKOY, OTC:LUKOF).
- STO, Norway's dominant oil company and 67% owned by the government, was awarded the operating rights on four of the new licenses; three of the 10 licenses were awarded in a previously disputed area with Russia in the southeast Barents Sea.
- Companies that applied but were not awarded any licenses include BP and Russia’s Rosneft (OTC:RNFTF).
- Now read Statoil wins seabed lease for world's first floating windarm
Fri, May 13, 5:35 PM
- Global oil firms have warned Iraq that projects to increase crude oil output will be delayed if the government insists on drastic spending cuts this year, Reuters reports.
- Oil companies helping Iraq develop its oil fields must clear spending with the government each year, and they are then repaid with crude oil produced from existing fields; since crude prices have weakened, the government has been struggling to find enough oil to repay the companies for their investment and is spending heavily to fight Islamic State in its northern and western provinces.
- The Iraqi government request was contained in Oil Ministry letters to BP, Shell (RDS.A, RDS.B), Exxon (NYSE:XOM), Eni (NYSE:E), Lukoil (OTCPK:LUKOY, OTC:LUKOF) and Petronas, some of whom say that the proposed budgets may prevent them from continuing operations in the country.
Tue, Apr. 5, 10:34 AM
- Kazakhstan has filed a $1.6B claim against a group led by Eni (E -1.8%) and BG Group which is developing the Karachaganak gas condensate field.
- The dispute relates to a formula which determines how profit from the development is split between the companies and the government, consortium member Lukoil (OTCPK:LUKOY, OTC:LUKOF) said in its financial report published yesterday, which also said the parties were in talks on a possible settlement.
- Eni and BG, recently acquired by Royal Dutch Shell (RDS.A, RDS.B), each own 29.25% of the project in northwest Kazakhstan, which they jointly operate; state-owned KazMunayGaz owns 10%, Chevron (CVX -0.3%) has 18% and Lukoil 13.5%.
- The Kazakh government has said the consortium would start an expansion project in 2017 that will cost $12B; in 2015, the field produced 141M boe.
- Now read Russian oil output hits 30-year high, dampens hope for production freeze
Mon, Apr. 4, 10:30 AM
- Russia says its oil production rose to the highest level in nearly 30 years last month, adding to doubts about the ability of the world's largest oil exporters to reach an when they meet in Doha this month to discuss how to align global supply and demand.
- Russia produced 10.91M bbl/day in March, up 0.3% from February and reaching the highest level since 1987 when the country produced 11.5M bbl/day.
- Some oil industry observers believe it would be difficult for Russia to stick to an output freeze since the domestic industry is dominated by big companies such as Gazprom (OTCPK:OGZPY), Rosneft (OTC:RNFTF) and Lukoil (OTCPK:LUKOY, OTC:LUKOF), each with their own agenda.
- Commerzbank analysts say speculative investors, who drove oil prices higher between mid-February and mid-March on hopes of a deal, likely will pull out of the market again in light of the latest developments.
- Separately, Lukoil, Russia's second largest oil producer, reports a 26% drop in net profit in 2015, hit by falling crude prices and writeoffs; EBITDA fell 3.7% Y/Y to 768.9B rubles.
- ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
- Now read Expect "sharply lower" oil prices in coming weeks - Goldman
Fri, Feb. 12, 10:21 AM
- Lukoil (OTCPK:LUKOY, OTC:LUKOF) has told the Russian government it wants to buy recently nationalized rival Bashneft, as the state decides whether to sell a controlling or minority stake in the firm to plug a budget deficit, Reuters reports.
- A sale would mark a significant reversal after more than 15 years of non-stop consolidation and nationalization of Russia's energy industry.
- Pres. Putin has ordered a privatization drive to cover a budget deficit and reportedly is considering selling stakes in oil major Rosneft (OTC:RNFTF).
LUKOIL is one of the world's leading vertically integrated oil & gas companies. Main activities of the Company are exploration and production of oil & gas, production of petroleum products and petrochemicals, and marketing of these outputs. Most of the Company's exploration and production... More
Sector: Basic Materials
Industry: Electric Utilities