Russian Oil and Gas Industry: News

kvs wrote:

Mike E wrote:

Viktor wrote:

They are estimated to contain as much as a trillion barrels of oil - four times the reserves of Saudi Arabia.

If that is true, you can render me speechless!

The Bazhenov is overhyped in my view.   There has not been enough pilot production from it to evaluate its performance.   There is too much confusion in the mass media about oil reservoir types.   For example, I see articles talking about the Bakken and the Green River formation in the same vein.  They have nothing in common.   The Bakken is a actual oil reservoir with the peculiar structure of a dolomite (porous) layer sandwiched between two non-porous shale-like layers (these are not shale but are often mislabeled as such).    The Green River formation consists of vast kerogen deposits.   Nobody has launched a single test or commercial operation to cook kerogen into oil after extracting it from shale.    Both processes cost a lot of energy.  

So the Bazhenov may be a very expensive prospect and not resemble the Bakken at all.  

Viktor wrote:Interesting  

Key among Russian tight oil reserves are the Bazhenov formations, which are located beneath existing mature west Siberian fields.

They are estimated to contain as much as a trillion barrels of oil - four times the reserves of Saudi Arabia.

Rosneft and Gazprom Neft are working on Bazhenov with Exxon and Shell.

"When we learnt about the first sanctions we decided to speed up work on all fronts to minimize the damage to the company," said a Rosneft source.

LINK

sepheronx wrote:http://en.itar-tass.com/economy/749594

MOSCOW, September 15. /ITAR-TASS/. Russian gas giant Gazprom has agreed to supply seven shipments of liquefied natural gas (LNG) to Egypt, the country’s Industry and Trade Minister Mounir Fakhry Abdel Nour told PRIME on Monday, without disclosing the amount and terms of the supplies.
“Egypt will receive the first shipment in early December,” the minister said, adding that Gazprom has signed a contract with Egyptian Natural Gas Holding Company (EGAS).
Egypt has also offered Gazprom to take part in tenders to explore oil and gas fields in the country. “The company has received suggestions, but has not participated in tenders yet. We intend to cooperate with Gazprom in any format,” he added.

MOSCOW, September 17. /ITAR-TASS/. Russia is capable of meeting the growing demand for gas in Europe and China, Gazprom’s CEO Alexey Miller said at a meeting with Russian President Vladimir Putin on Wednesday.

“We have the ability to satisfy the growing demand on the Chinese market, in the east, and the demand in the European Union,” Miller said.

Gas deliveries to EU in line with contracts

Gas supplies to consumers in Europe are proceeding in line with contracts, Miller said. Gazprom has already pumped 3.8 billion cubic meters of gas to underground storage facilities in Europe. Overall, it plans to pump 5 billion cubic meters, Miller told Russian President Vladimir Putin on Wednesday. “Gazprom is carrying out stable deliveries of gas to European consumers. We are fully in line with our contract obligations,” Miller said.

On Putin’s request, he explained the issue of additional gas volumes supplies. “We will be able to satisfy the increased demand of the European consumer in the future,” he said.

Miller added that by early September, the volume of Russian gas supplies for export has already exceeded the target indicator by 3 billion cubic meters.

Gas talks with China

The company is holding talks on contract to supply 30 billion cubic meters of gas to China for 20 years, Gazprom CEO added. Gazprom may supply up to 100 billion cubic meters of gas to China along the western export route over a period of 20 years, Miller said. “As part of negotiations with China, various volumes for the western route have been made public,” he said. “A possibility of supplying from 60 bcm to 100 bcm is being considered," Miller noted.

Miller recalled that the western route envisions deliveries of crude to customers in China from Western Siberia. It has a number of advantages, as it enables Russia to engage the previously built West-Siberian gas infrastructure. Also, thanks to the plans for gas processing in Western Siberia this route will require less investment than the Eastern Supplies Route.

Miller stressed a possibility of a continuous buildup of supplies along the eastern route depending on China’s actual demand.

Gazprom's plans for gas production in 2014

As Russia’s major producer and exporter of natural gas, Gazprom plans to produce 463 billion cubic meters of gas in 2014, Miller said. According to Miller, Gazprom has an upstream capability of 617 bcm.

He also told Putin about the performance under the program of ramification of gas distribution services, which the corporation is implementing in 67 constituent regions of the country. At the end of 2014, the provision of gas to households across the country is expected to reach 65%. Miller added that the availability of gas to household owners in rural areas had grown 20% since the launch of this program.

Gazprom will increase the amount of gas in its underground storage facilities to a record level of 72 billion cubic metres, Miller said. Gazprom CEO said 60.5 billion cubic metres had already been stored and Gazprom was planning to finish filling up its underground storage facilities in the next month and a half.

This will increase gas storage facilities’ productive capacity by 8% in the coming winter, he said.

The geopolitical crisis in Ukraine could cut Russia’s balance of payments by the equivalent of 2% of GDP, and lower oil prices could knock off another 2%, Maksim Oreshkin, head of Russia’s Finance Ministry's strategic planning department, said.



Russia’s Urals crude oil experienced a significant drop from its June price of above $110 per barrel to its current price of $93 per barrel, a reduction that Oreshkin believes, coupled with Ukraine-related economic problems, could sink Russia’s balance of payments by a total of 4 percent.

Oreshkin explained that lower Urals crude prices reduce exports by $55 billion per year, the official said at the Fitch ratings agency conference on Thursday.


The World Bank recently lowered their GDP growth estimate for Russia in 2014 to 0.5 percent, effectively equivalent to stagnation. In 2013, the economy expanded 1.1 percent to $2.1 trillion.


The sudden drop is structural, whereas in the past it was cyclical Oreshkin said. Now it has to do with a decline in demand and increase in oil production, in addition to Libya returning to the oil market.

"It is unlikely that we will see a sharp drop in prices, but we are unlikely to see a sharp rise. Most likely, we will see stabilization in the area of $90 per barrel,” he said.

The Finance Ministry has projected a baseline Urals crude price of $104 in 2014, and $100 in 2015-17, but as noted by Economic Development Minister Aleksey Ulyukaev, there is a risk of price change, in the case of turmoil in the Middle East as well as a global economic turndown, which will lower consumer demand.

Oreshkin said that Russia could be being too soft on monetary policy. The government has planned on $80 per barrel prices as a cut-off when drafting the budget.

According to Oreshkin, the economy “didn’t even notice any shocks.”


"When the Economic Development Ministry released a forecast of $100 per barrel, we said then that we see the risks that oil will cost $ 90-95. It fell in this range, however. When it comes to conservative projections, the use of the lower level of this range would be a conservative approach," Oreshkin said.

Russia, the world’s largest energy exporter, relies on oil and gas exports for 50 percent of its federal budget, as well as 70 percent of the country’s total exports.

Urals crude, Russia’s key export blend, hails from the Ural mountain and Volga regions, and is usually priced slightly below Brent.

Sanctions also threaten Russia’s oil future.

The CEO of Russia’s second-largest oil company, Lukoil, said that he expects sanctions to affect 20 percent of Russia’s total oil output – or about 100 million tons, The Moscow Times reported.

Former Finance Minister Alexei Kudrin has warned that sanctions will cost Russia 1 percent of total GDP, which could send the economy into a recession, and lead to a 3-4 percent economic drop.

In the worst scenario, if Russia is cut off from the SWIFT international banking payment system, Kudrin predicts a 5 percent drop in GDP.

MOSCOW, September 29. /ITAR-TASS/. Russia’s discovered oil reserves stand at 17.8 billion tons, as calculated under the national reserves estimate system, President of the Union of Oil and Gas Producers of Russia Gennady Shmal told a press conference on Monday.

He said that C2 reserves stand at 8 billion tons.

In 2013, the reserves growth exceeded production by 688.34 million tons for oil and by 1 trillion cubic meters for gas.

MOSCOW, October 6.  / TASS /.  Russia has the largest natural gas reserves in the world: in Russia is 24.4% of the total world reserves, or 49.541 trillion cubic meters. m., says the annual report of the World Oil and Gas Review, prepared by the Italian energy company Eni.


At the same stocks on December 31, 2013 increased by 1.5% compared to the end of 2012, estimated at Eni.


The second largest gas reserves Iran occupies 16.7% of the total world reserves, there is the 33948000000000 cube.  m, and the third - Qatar with 24936000000000 cube.  m. fourth place by a large margin is Turkmenistan, where 9,967,000,000,000 cubic meters.  meters of gas reserves.


Producer of natural gas, Russia is the second largest in the world after the United States, producing 19.2% of the total production in the world, according to the study.  Mining December 31, 2013 in Russia grew by 2% compared to the end of 2012, to 657.66 billion cubic meters.  m, calculated in Eni.  In the USA, production amounted to 673, 51 billion cubic meters.  m (19.7% of world production).

Oil reserves

Russian oil reserves in eighth place with 4.8% of world reserves after Venezuela (18%), Saudi Arabia (16.2%), Canada (10.4%), Iran (9.5%), Iraq (8, 5%), Kuwait (6.3%) and the UAE (5.9%). In Russia, located 80 billion barrels of reserves, compared with 2012 stocks have not changed.


Russian oil production also occupies the second place in the world (after Saudi Arabia) - 12.5% ​​of world production.  By the end of 2013, oil production increased by 1.4% to 10.877 million barrels a day.  In Saudi Arabia, production reached 11,566,000 barrels (13.2% of world production).

Gas exports

Russian gas export ranks first in the world.  RF exported on the basis of 2013 206 530 000 000 cubic meters.  m, according to the report.  This figure is 9% more than in 2012.


Iran, which took second place, exported 128.08 billion cubic meters.  meters of gas in 2013.  Its exports grew by 1.7%.


Third place goes to Norway, which reduced exports in 2013 by 6.5% compared with 2012, to 103.77 billion cubic meters.  m.

sepheronx wrote:http://en.itar-tass.com/economy/755856

So stupid as Rosneft operates with Revenue of over $100B, they should fund themselves out of an issue. Maybe government instead should sell Rosneft off, that should make a good fair amount of money. These oil companies are really going to try to take advantage of the Russian people. Rosneft has already lots of money and a lot of their fields are already made. They used to opperate on much cheaper oil prices and with currency down, will be cheaper to operate at home. Starting to sound like rosneft are crooks.

sepheronx wrote:http://en.itar-tass.com/economy/755856

So stupid as Rosneft operates with Revenue of over $100B, they should fund themselves out of an issue. Maybe government instead should sell Rosneft off, that should make a good fair amount of money. These oil companies are really going to try to take advantage of the Russian people. Rosneft has already lots of money and a lot of their fields are already made. They used to opperate on much cheaper oil prices and with currency down, will be cheaper to operate at home. Starting to sound like rosneft are crooks.

Extraction "Rosneft" has reached 5.1 million barrels of oil equivalent per day, said company president Igor Sechin at the Third Eurasian Forum in Verona. He noted that this volume "Exceeds the production of many major oil-producing countries." "Over the last five years " Rosneft "steadily replaces more than 100% of its production," - he added.


According to Sechin, "Rosneft" has the largest offshore resource base. "We own about 20% of the resources on the shelf of the world's oceans, which represents a 25.5 billion tons of oil and 25 trillion cubic meters. meters of gas. The total volume of proved reserves of 122 billion barrels. These stocks are the best in the world in terms of the efficiency of development and production, which they provide. In just the past 10 years the company has opened 92 oil and gas fields, the largest of them - in Eastern Siberia, "- said the head of "Rosneft".


Total procurement "Rosneft" in 2014 will exceed 23 billion euros. Deductions "Rosneft" to the Russian budget is $ 80 billion a year.

Austin wrote:RF enough reserves to production to 600 million tons of oil per year for 30 years

Viktor wrote:

Austin wrote:RF enough reserves to production to 600 million tons of oil per year for 30 years

Thats 120 bbl and 6th place on the list LINK

Austin wrote:

Viktor wrote:

Austin wrote:RF enough reserves to production to 600 million tons of oil per year for 30 years

Thats 120 bbl and 6th place on the list LINK

1 Billion Ton for Ural Bled is 7.4 billion Barrel of OIL ( 7.4 bboe )

600 million tons x 30  , 18 Billion Ton

18*7.4 =  133 bbl

so pretty close to Iraq Reserves

But thats a conservative estimate , they did not put out C2 reserve with is 10.9 Billion Tons  , And ofcourse excluding the Artic Reserves.


http://sdelanounas.ru/blogs/36708

Would suggest read the discussion in the link