Sun, Jun. 26, 7:02 AM
- Strengthening their economic ties, Russia and China sealed a raft of energy deals during President Vladimir Putin's visit to Beijing on Saturday.
- ChemChina agreed to take a 40% stake in Rosneft's (OTC:RNFTF) planned petrochemical complex VNHK in Russia's Far East and signed a new one-year supply contract.
- The Russian firm also committed to negotiating the sale of 20% of its Verkhnechonsk unit to Beijing Enterprises (OTCPK:BJINY) and signed a framework agreement with Sinopec (NYSE:SNP).
- Previously: Putin weighs $11B Rosneft sale to China, India (Jun. 20 2016)
Mon, Jun. 20, 3:06 AM
- Vladimir Putin is considering selling part of Russia's corporate crown jewels to China and India as the president struggles to fund budget shortfalls made worse by cheap crude.
- Moscow is seeking buyers for 19.5% of state oil giant Rosneft (OTC:RNFTF) and expects to raise at least 700B rubles ($11B) from the sale, setting a privatization record for the country.
Fri, Jun. 17, 4:45 PM
- Russia's Energy Minister says he has discussed with Exxon Mobil (NYSE:XOM) CEO Rex Tillerson the possibility of securing rights to export natural gas to China via the Sakhalin Island in the Pacific Ocean.
- XOM is an operator of the offshore Sakhalin-1 project being jointly developed with Rosneft (OTC:RNFTF) under a production-sharing agreement formulated in the 1990s, but the project's gas deposits have long been locked in due to a price dispute between Sakhalin-1 and Gazprom (OTCPK:OGZPY), which has a monopoly right to export gas.
- The minister says he discussed various options with Tillerson at this week's St. Petersburg International Economic Forum
Fri, Jun. 17, 7:37 AM
- BP and Rosneft (OTC:RNFTF) say they will create a joint venture to explore for oil in eastern and western Siberia.
- The JV, which will be 51% owned by Rosneft, will focus on onshore exploration of two areas of mutual interest in the West Siberian and Yenisey-Khatanga basins covering a combined area of ~260K sq. km.
- BP says it will provide up to $300M in two phases as its contribution to the cost of the JV's activities at the exploration stage.
- The companies say the Yermak Neftegaz venture plans to start field work in the upcoming 2016-17 winter season.
Wed, Jun. 8, 8:50 AM
- Rosneft (OTC:RNFTF) reports Q1 EBITDA fell 14.4% Y/Y to 273B rubles ($4.2B) from 319B rubles in the year-ago quarter while net profit tumbled 75% to 14B rubles; the EBITDA result was better than analysts had expected but net profit came in far short.
- Rosneft says its Q1 extraction costs fell to 155 rubles/bbl, helping to drive the EBITDA margin to 26% from 24% a year earlier; free cash flow for the quarter totaled ~$1.5B.
- Rosneft also says it reduced net debt by 45% Y/Y to $23.9B; oil and gas output was little changed at 5.21M boe/day in the period.
Tue, May 31, 10:53 AM
- China National Petroleum (NYSE:PTR) may consider increasing its stake in Russian oil firm Rosneft (OTC:RNFTF) during a planned privatization program, Chairman Wang Yilin told Russian television yesterday.
- The Russian government has included a reduction in its stake in Rosneft to 50% from 69.5% in its privatization plan, with a sale expected to bring ~650B rubles ($10B) to the Russian budget, which has been in deficit as the economy has slumped because of weak oil prices.
- CNPC already has a small stake in Rosneft; BP owns a 19.75% stake.
Thu, May 26, 9:56 AM
- Russia's Rosneft (OTC:RNFTF) and Indonesia's state-run energy company Pertamina sign a cooperation agreement that includes a plan to build a new oil refinery in Indonesia.
- The two companies may invest $12B-$13B in the refinery project at Tuban in East Java, with completion targeted by the end of 2021, Pertamina says.
- Pertamina also hopes to get additional production of 35K bbl/day and a reserve of 200M barrels from acquiring interests in several oil fields in Russia
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
Tue, May 10, 10:35 AM
- Internal differences are destroying OPEC and the cartel's ability to influence the markets has virtually disappeared, Rosneft (OTC:RNFTF) CEO Igor Sechin tells Reuters.
- Sechin, a close ally of Russian Pres. Putin, was the only Russian official to consistently oppose an oil price deal with OPEC even after the Kremlin effectively endorsed a plan; now that his gloomy predictions about talking to OPEC have come to pass, Sechin feels vindicated.
- "At the moment a number of objective factors exclude the possibility for any cartels to dictate their will to the market... As for OPEC, it has practically stopped existing as a united organization," Sechin says.
- "Key factors which are influencing the market are finance, technology and regulation. We can see this with the example of shale oil," Sechin says as he calls on Russia to abandon any hope that prices can be fixed by any means other than market rebalancing.
Fri, Apr. 22, 4:53 PM
- Rosneft (OTC:RNFTF) says it plans to increase its dividend to 35% of its 2015 profit, or 11.75 rubles/share, as the government seeks more funds from state corporations to bolster public finances.
- The dividend would amount to 124.5B rubles ($1.87B) and represents a departure from a policy of paying 25% of net income to shareholders, which resulted in a 8.21 ruble dividend last year.
- The Russian government is the largest shareholder in Rosneft with a 69.5% stake, while BP is the no. 2 shareholder with a 19.75% stake.
- Now read Gazprom climbs on Russian 50% payout order
Wed, Apr. 20, 8:43 AM
- Gazprom (OTCPK:OGZPY) advances to its highest levels in a year in Russian trade on the possibility of a bigger dividend payout.
- According to a government order issued on Tuesday, state companies must pay out half their income under Russian or international accounting standards, whichever produces the higher figure; Gazprom’s management already has recommended a 2015 dividend at 7.40 rubles/share, which is 50% of income according to Russian standards, and if the group pays out the same proportion under IFRS, last year’s dividend would jump to 15-20 rubles/share, implying a 10% yield.
- Gazprom’s recent rally has allowed it to reclaim the position of the largest Russian company by market cap, which it ceded to Rosneft (OTC:RNFTF) earlier this month.
- Now read Russian oil output hits 30-year high, dampens hope for production freeze
Wed, Apr. 13, 1:09 PM
- Russia has selected the U.S. law firm White & Case to advise it on how to conduct the sale of ~$7.5B of shares in oil producer Rosneft (OTC:RNFTF), which is under U.S. and European sanctions, Bloomberg reports.
- While the restrictions that cover Rosneft do not prohibit equity investment in the company, the U.S. and Europe have frowned on western banks participating in Russian offerings, and have blocked a Russian Eurobond sale.
- Russia hopes to sell a slightly less than 20% stake in Rosneft to raise at least 500B rubles (~$7.5B), which would reduce the Russian government’s stake to ~50%.
Mon, Apr. 11, 11:33 AM
- Rosneft (OTC:RNFTF) has become Russia’s most valuable company, as its market cap exceeds Gazprom (OTCPK:OGZPY) for the first time since its shares began trading in 2006, Bloomberg reports.
- "Rosneft is growing its free cash flow and should do better in a stronger oil price environment. Gazprom’s free cash flow is on the way down and unlikely to reverse soon," says an energy analyst at Renaissance Capital.
- Gazprom still dwarfs Rosneft by production at ~8M boe/day to Rosneft's ~5M boe/day.
- 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
Thu, Mar. 31, 10:22 AM
- Rosneft (OTC:RNFTF) reports a 53% drop in Q4 net profit but a 2% increase in FY 2015 profit despite the plunge in crude oil prices, helped by a weakening ruble and a tax system that eases as prices fall.
- Rosneft's Q4 net profit fell to 53B rubles ($782.3B) on a 6.4% Y/Y decline in EBITDA to 278B rubles, while full-year net profit rose to 355B rubles on an 18% rise in EBITDA to 1.245T rubles.
- Rosneft says it increased hydrocarbon production by 1% last year to 5.16M boe, while crude oil production fell 1% last year but started to turn round in Q4, which analysts say could point to flat production this year.
- Rosneft's net debt - a concern of analysts - fell by 47% to $23.2B at year-end 2015 due to prepayments under long-term oil supply contracts.
- Now read Rosneft to spend 1T rubles annually to support output
Thu, Mar. 31, 7:30 AM
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Sector: Basic Materials
Industry: Major Integrated Oil & Gas
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