Russian Oil and Gas Industry: News #2

miketheterrible wrote:the article actually said:

The value of oil reserves reached some 71.7 percent of Russia’s GDP in 2018.

Which means that not the oil sales is 71.7% of GDP but that the reserves are that amount.

Which is also nonsense since that oil is far more valuable and there are significantly more reserves in the arctic portion of Russia.

Also add in, Russia is giving away its oil for paper.  Its a rather bad scheme Russia got itself into.  Instead, it should trade based upon assets and other material.

Austin wrote:
I would assume here most of it is Natural Gas and less of it is Oil.

What value addition can be done to Natural Gas besides being Piped or LNG ? Natural Gas is environmental friendly is its major positive.

Germany makes legal changes to ease completion of Nord Stream 2

MOSCOW, November 13. /TASS/. Oil reserves of the Russian Arctic zone amounted to 7.3 bln tonnes, natural gas - about 55 trillion cubic meters, Russia’s Minister of Natural Resources Dmitry Kobylkin said on Wednesday.

"Oil reserves of the Russian Arctic zone are estimated at 7.3 bln tonnes, condensate - 2.7 bln tonnes, natural gas - about 55 trillion cubic meters. The Yamalo-Nenets Autonomous region has the greatest potential. It accounts for about 43.5% of the initial total resources of the Arctic zone," he said.

It was noted that about 41% of the region’s oil and gas resources are located on the Arctic shelf.

The Minister believes that the Arctic region should be considered a strategic reserve of the country. "I am convinced that the development of the Arctic region is a project for decades, if not centuries ahead. All this time it will affect welfare of the whole country. I still think that the Arctic shelf should be considered a strategic reserve for the development of the mineral resource base and hydrocarbon production in Russia," Kobylkin said.

Alexander Novak said oil production in Russia, which has enough reserves of crude to sustain current production for over 50 years, could decline if the tax system remained unchanged.

We expect about 553 million [metric] tons of oil production in 2018. We will reach a peak of 570 million tons in 2021,” Interfax quoted Energy Minister Alexander Novak as saying Tuesday.

Almost half of current capacity could be lost in less than two decades, Novak said, with levels expected to drop to 310 million tons by 2035. Current reserves stood at 29.7 billion metric tons of oil as of early 2017, he estimated

Austin wrote:Was trying to get official information on Russian Oil Reserves from official sources

https://www.reuters.com/article/us-russia-oil-novak/russia-should-reform-oil-taxes-to-sustain-output-energy-minister-novak-idUSKBN1WM0SE

Alexander Novak said oil production in Russia, which has enough reserves of crude to sustain current production for over 50 years, could decline if the tax system remained unchanged.

So 50 years at current rate of production of 550 million tons comes to  27.5 billion Tons of Oil

https://peakoil.com/production/russia-is-only-3-years-away-from-peak-oil

We expect about 553 million [metric] tons of oil production in 2018. We will reach a peak of 570 million tons in 2021,” Interfax quoted Energy Minister Alexander Novak as saying Tuesday.

Almost half of current capacity could be lost in less than two decades, Novak said, with levels expected to drop to 310 million tons by 2035. Current reserves stood at 29.7 billion metric tons of oil as of early 2017, he estimated

So in 2019 the reserves was calculated at 27.5 billion tons roughly 200 billion barrel of Oil  ( 1 Billion ton =  7.3 bbl ) . This excludes the Arctic Reserves

Hole wrote:They threatend to prevent the construction of the pipeline.
They threatend to stop the construction of the pipeline.
Now they threaten to halt it´s launch.
Next year they will threaten to prevent the pipeline from being used to it´s full capacity.

The break-even lifting costs for shale oil production at the formation stand at 8,500 rubles ($132) per tonne, Alexei Vashkevich, head of geological exploration and resource base development at Gazprom Neft, told reporters.

“We are ready to get that number in 2022-2023,” he said in comments, cleared for publication on Monday.

The company plans to start commercial production of oil from Bazhenov formation in 2025, Vashkevich reiterated.

The International Energy Agency describes Bazhenov as the world’s largest source rock, a bed of ancient organic matter dating back to the Jurassic period which has given rise to most of the crude oil pumped from the fields of West Siberia.

Gazprom Neft estimates that the reserves of the light, low-sulphur and of low-viscosity Bazhenov formation stand at between 18 billion and 60 billion tonnes.

Austin wrote:Gazprom Neft says Bazhenov shale oil output to reach viability by 2022-2023

https://in.reuters.com/article/us-russia-oil-exports/as-russia-expands-pacific-pipeline-a-third-of-oil-exports-go-east-idINKBN1XV1LB

The break-even lifting costs for shale oil production at the formation stand at 8,500 rubles ($132) per tonne, Alexei Vashkevich, head of geological exploration and resource base development at Gazprom Neft, told reporters.

“We are ready to get that number in 2022-2023,” he said in comments, cleared for publication on Monday.

The company plans to start commercial production of oil from Bazhenov formation in 2025, Vashkevich reiterated.

The International Energy Agency describes Bazhenov as the world’s largest source rock, a bed of ancient organic matter dating back to the Jurassic period which has given rise to most of the crude oil pumped from the fields of West Siberia.

Gazprom Neft estimates that the reserves of the light, low-sulphur and of low-viscosity Bazhenov formation stand at between 18 billion and 60 billion tonnes.

Austin wrote:US threatens to halt launch of Nord Stream 2

Russia expects to delay Nord Stream 2 launch to mid-2020: report

Moscow — The Nord Stream 2 gas pipeline directly linking Russia and Germany via the Baltic will come online in the middle of 2020, Russian Deputy Prime Minister Dmitry Kozak was quoted as saying Thursday by the Prime news agency.

"In the middle of next year," Kozak told reporters in response to a question about when Russia expected the pipeline to become operational.

His comments came just a day after Energy Minister Alexander Novak said Nord Stream 2 might still come online in late 2019, as was originally planned by sole shareholder in the pipeline company, Gazprom.

However, the actual launch date depended on how quickly the operator would resume construction and fill the pipeline, he added.

Denmark granted the final permit needed to complete construction of Nord Stream 2 on October 30. The timeline for work to lay the section of pipeline in Danish waters remains key to when Nord Stream 2 is able to begin flowing gas.
The potential delay in Nord Stream 2 construction also undermines Russia's position in negotiating a new transit deal with Ukraine's Naftogaz. Ukraine transited some 87 Bcm of Russian gas to Europe in 2018 -- or some 44% of total Russian exports -- but those volumes are set to slump once the planned Nord Stream 2 and TurkStream gas pipelines come online.

The sides have not set a date yet for a new round of ministerial-level talks between the EU, Russia and Ukraine. Although the trilateral meeting is expected to be held in late November, so far only technical discussions on the terms of future Russian gas transit via Ukraine to Europe were held Wednesday via a teleconference.

"Russia is against any gas wars. We are making efforts to ensure they don't happen, so that everything is settled in advance. We have done everything for this," Kozak said of the talks with Ukraine.

Gazprom offered Monday to extend the transit deal with Naftogaz for one year as an extension of the parties' existing 10-year contract or under a new agreement in exchange for Naftogaz dropping all legal claims against the Russian company.

Ukrainian Energy Minister Oleksiy Orzhel deemed the proposal "unacceptable" on national television, but Russia had not yet received an official reply from Ukraine on the proposal, Novak said.

The current deal between Gazprom and Naftogaz expires at the end of 2019, and there is concern that without a new contract from January 1, 2020, Russian gas transit to Europe via Ukraine could be disrupted.