Sberbank to Place Rusal Russian Depositary Receipts From Dec. 23
By Jason Corcoran
Dec. 17 (Bloomberg) -- OAO Sberbank will start placing Russian depositary receipts for shares in United Co. Rusal, the world’s biggest aluminum producer, as of Dec. 23, the bank said in an e-mailed statement.
The receipts, the first to be issued by a Russian company, will allow Rusal, which raised $2.24 billion from the sale of shares in Hong Kong in January, to attract additional investors.
The receipts will be valid for all of Rusal’s authorized share capital of 20 billion common shares, the Moscow-based company said in a Dec. 1 statement.
To contact the reporter on this story: Jason Corcoran at Jcorcoran13@bloomberg.net
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Last Updated: December 17, 2010 01:39 EST
December 17, 2010 11:16
Sberbank to prepare RDR program for another major company in Q1 2011
MOSCOW. Dec 17 (Interfax) - Sberbank Russia (RTS: SBER) will prepare a Russian Depositary Receipt (RDR) program for another major company before the end of the first quarter of 2011, bank Deputy CEO Bella Zlatkis told journalists.
"We already have four potential orders, four major Russian companies. I expect that two of them will come out with this program soon," she said.
Zlatkis said information on at least one company that will issue RDRs will be disclosed before the end of the first quarter.
SocGen Agrees to Buy 19.3% Rosbank Stake From VTB, Interfax Says
By Jason Corcoran
Dec. 17 (Bloomberg) -- Societe Generale SA agreed to buy VTB Capital’s 19.3 percent stake in OAO Rosbank to boost the French lender’s holding in its Russian unit to about 80 percent, Interfax reported, citing unidentied people familiar with the matter.
The deal will be completed before 2012, the Moscow-based newspaper said, without giving financial details of the transaction.
To contact the reporter on this story: Jason Corcoran in Moscow at email@example.com
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Last Updated: December 17, 2010 01:08 EST
RPT-Russia RUSAL plans 2-3-year yuan Eurobond in Q1 '11
MOSCOW, Dec 17 (Reuters) - The world's top aluminium producer, Russia's RUSAL (0486.HK: Quote, Profile, Research, Stock Buzz), plans to issue a yuan Eurobond in the first quarter of 2011, the company's senior official said on Friday.
"We will definitely place (the Eurobond) for two or three years," Deputy Chief Executive Oleg Mukhamedshin told reportes, adding that RUSAL will choose the underwriters in the nearest future. (Reporting by Katya Golubkova, writing by Aleksandras Budrys; Editing by Andrey Ostroukh)
RusAl to start issuing $2 bln RDR on Dec 23
Russia's largest aluminum producer RusAl will start placing Russian Depositary Receipts (RDR) worth up to $2 billion on shares traded on the Hong Kong Stock Exchange on December 23, the country's top bank Sberbank, which leads the issue, said on Friday.
One RDR equals 10 Hong Kong shares.
The RDR program is aimed at attracting investors who did not participate in RusAl's initial public offering in January 2010 on the Hong Kong and Paris stock exchanges, when it floated about 11% of its equity capital.
MOSCOW, December 17 (RIA Novosti)
Silvinit to Review Takeover by Uralkali Dec. 20, Vedomosti Says
By Maria Kolesnikova
Dec. 17 (Bloomberg) -- OAO Silvinit’s board will review a proposed takeover by its smaller competitor OAO Uralkali on Dec. 20, Vedomosti reported, citing unidentified people familiar with the plan.
Billionaire Suleiman Kerimov and partners acquired controlling stakes in the two Russian companies this year, planning to merge them to create the world’s second-largest potash producer, the newspaper said.
To contact the editor responsible for this story: Maria Kolesnikova at email@example.com
Last Updated: December 17, 2010 01:13 EST
Uralkali, Silvinit in talks on merger
RBC, 17.12.2010, London 10:59:03.London Uralkali, Russia's largest and the world's third largest producer of mineral fertilizers, has officially confirmed being in talks on a merger with another Russian producer of potassium fertilizers - Silvinit, the company indicated in a press release today.
At the same time, however, the company specified that its board of directors had not yet approved the terms of the potential deal. Considering this, there are no guarantees that the transaction will take place at all. However, Uralkali is poised to make announcements on the progress in the talks in accordance with listing regulations on the London Stock Exchange.
Experts note that a merger between Uralkali and Silvinit will result in the creation of a Russian potassium giant.
DECEMBER 16, 2010, 5:59 P.M. ET
Renault Still Mulling Boosting Its Stake In Russia's AvtoVAZ
By David Pearson
Of DOW JONES NEWSWIRES
PARIS (Dow Jones)--Renault SA (RNO.FR) is keen to deepen its collaboration with Russian auto maker AvtoVAZ (AVAZ.RS), but an agreement that would allow the French company to increase its 25% shareholding in the maker of the Lada brand hinges to a large degree on AvtoVAZ's valuation, a senior Renault official said late Thursday.
"Nothing has been decided" about increasing the 25% stake that Renault bought in 2008, Chief Operating Officer Patrick Pelata said.
Speaking to a small group of journalists on the sidelines of an event organized by the French automobile manufacturers' association, Pelata pointed out that "a lot has happened" since it bought one-quarter of AvtoVAZ's capital for $1 billion.
Since then, Renault has pumped a lot of equipment, proprietary technology and engineering manpower into the Russian company to modernize its manufacturing methods and show it how to develop fresh, up-to-date products. Valuation now becomes tricky, Pelata pointed out, as "you don't want to pay for your own work."
Russian Prime Minister Vladimir Putin said in November that Renault and its alliance partner Nissan Motor Co (NSANY, 7201.TO) were welcome to raise their AvtoVAZ stake up to 50%, a move that would give the two effective control of AvtoVAZ. Renault Chief Executive Carlos Ghosn said at that time that such a move as "absolutely logical" and that the Renault-Nissan alliance would consider Putin's proposal.
Pelata said increasing the stake to 50% makes sense "if it's done at the right price and provided everyone agrees inside AVAZ that this is in the interest of the company."
But even if a deal can't be struck, he said, "I believe we can still do lots of things together."
-By David Pearson, Dow Jones Newswires; +33140171740; firstname.lastname@example.org
Aeroflot to sell 51% of Nordavia
Russia's flagship airline Aeroflot will sell a 51% stake in its subsidiary Nordavia, an airline operating in the north-west of the country, an Aeroflot source told RIA Novosti on Friday but declined to elaborate.
A source close to the negotiations said Aeroflot had approved the deal under which Taimyr Airlines, belonging to mining giant Norilsk Nickel, would acquire a 51% stake in Nordavia, which had failed to fit in Aeroflot's new development strategy.
Norilsk Nickel declined to comment.
The source said that Aeroflot's board approved the deal unofficially in November and will officially discuss the sale at the end of January.
Nordavia has a fleet of 23 aircraft including 18 Boeing 737 regional airliners.
MOSCOW, December 17 (RIA Novosti)
For the Record
17 December 2010
Swedish passenger ship company Viking Line may open a route between Stockholm and St. Petersburg in two years, Dagens Industri reported Thursday, citing Viking Line’s chief executive Mikael Backman. (Bloomberg)
Coal producer Raspadskaya resumed production at its main mine, seven months after blasts killed at least 90 workers, chief executive Gennady Kozovoi said Thursday, and the company’s goal for next year is to resume full production. (Bloomberg)
The West Siberian Generating Company plans to invest $258 million to build eight small hydroelectric power plants in the east Siberian Altai republic, RIA-Novosti said. (Bloomberg)
Sberbank may be interested in bidding for a 51 percent share of Oesterreichische Volksbanken’s Eastern Europe unit, newspaper Der Standard reported Thursday, citing unidentified bankers familiar with the planned sale. (Bloomberg)
Activity in the Oil and Gas sector (including regulatory)
12/17 12:25 CUSTOMS UNION COUNTRIES MOVING TO EQUITABLE GAS PRICES NOT LATER THAN JAN 1, 2015 - DRAFT AGREEMENT
December 17, 2010 11:54
Energy Ministry raises 2010 oil production forecast to 504 mln tones
MOSCOW. Dec 17 (Interfax) - The Russian Energy Ministry has raised the oil production forecast for 2010 to 504 million tonnes, Deputy Energy Minister Yury Sentyurin said at an international energy forum.
Energy Minister Sergei Shmatko had previously said oil production this year would be about 500 million tonnes.
"Russia's daily production hit a 10-year high in October. We can now say that production in Russia will top 504 million tonnes," Sentyurin said.
The general scheme for development of oil production in Russia to 2020 has annual production fluctuating in the range 500 million-505 million tonnes.
Russia will introduce tax breaks for smaller fields from 2011
December 17, 2010
Event: Yesterday (16 December) Deputy Finance Minister Sergey Shatalov announced that the government will shortly submit a draft law that provides for a reduced mineral extraction tax (MET) for smaller fields whose recoverable reserves are less than 5mnt.
Action: We think the news is positive for most exploration and production (E&P) companies in our universe.
Rationale: A Finance Ministry representative, speaking at our annual oil and gas conference last month, mentioned that there was a very high chance that such measures would be introduced from 1 January 2011. They should lead to lower MET payments for companies with fields of less than 5mnt (C1+C2) on a progressive scale. We still need to calculate precisely what impact such new measures will have, but on a preliminary estimate, they could add about 5% to the target prices of applicable companies.
Algeria leans towards not keeping BP assets: Russia
Fri Dec 17, 2010 8:48am GMT
MOSCOW (Reuters) - Algeria is leaning towards letting go of BP's assets in the country due to the technological challenges of developing them, Russian Energy Minister Sergei Shmatko said on Friday.
Russian oil company TNK-BP -- BP's Russian venture -- wants the assets if Algeria forgoes the right of first refusal.
"The decision will depend on their understanding of the technological solutions," Shmatko told reporters.
"The advantage of TNK-BP is in their corporate relations and in their capacity to provide these technologies," he said.
He added that for now Algeria did not seem inclined for state energy company Sonatrach to take on the assets. BP has put a number of assets around the globe up for sale to help pay for the Mexican Gulf oil spill earlier this year.
Separately, Shmatko said that among extensive plans for expanding energy cooperation with China, Russia was looking at doubling coal exports to 20 million tonnes a year.
Sakhneftegaz adds to Arkutun-Dagi scope
Sakhneftegaz Engineering has secured more contracts for work on the ExxonMobil-led Arkutun-Dagi development, shareholder WorleyParsons has told the Australian Securities Exchange.
Upstream staff 17 December 2010 06:59 GMT
In an announcement, WorleyParsons said the Russia-based company would conduct further engineering, project management and procurement work on the development’s offshore platform topsides.
Sakhneftegaz had secured services and procurement contracts worth $400 million in March for the project, an offshore oil and gas development at Sakhalin Island off Russia’s east coast.
The unit is one of the largest floatover-installation structures in the world, with the production platform being built by Daewoo Shipbuilding & Marine Engineering in South Korea.
WorleyParsons owns a 49% stake in Sahkneftegaz.
Published: 17 December 2010 06:59 GMT | Last updated: 17 December 2010 07:12 GMT
Russia's Rosneft in talks to find strategic investors - CEO
MOSCOW, December 17 (RIA Novosti) - Russia's largest oil firm Rosneft is negotiating with foreign strategic investors, company CEO Eduard Khudainatov told reporters late Thursday.
"We are in a serious negotiating process, we have already achieved much, the deal is starting to take shape," Khudainatov said. "It will not be one investor, we'll make a continental entrance to different regions of the world. Rosneft must quit Russian territory and have reserves abroad, on all continents."
A company source has said investors might be attracted in 2014-2015.
In October, First Deputy Prime Minister Igor Shuvalov said the government intended to reduce its stake in Rosneft to control, or 25% plus one share, by 2015 and below control after 2015, as part of the country's privatization effort.
Rosneft unveils ambitious development plans
RBC, 17.12.2010, Moscow 11:47:46.Rosneft is poised to increase its portfolio of foreign assets in order to boost its capitalization, and also reduce the debt burden and hike up production, the Russian oil company's President Eduard Khudaynatov told journalists in Moscow today.
According to Khudaynatov, Rosneft is significantly undervalued at the moment. With this in mind, the company will take active steps to enter foreign markets, though the company's chief refrained from specifying those markets. He went on to note that Rosneft planned to engage foreign experts to participate in complex projects, including the development of deposits on the continental shelf.
Rosneft's net debt is expected to reach $13.3bn in 2010, equal to that of 2006, and the company will take measures to reduce it even further. Meanwhile, oil production is projected to reach 119.5m tonnes in 2010 and even more next year. Kudaynatov also noted that the company was busy working on its development strategy until 2030, adding that one of the key goals was to create the largest energy holding on a global scale.
Rosneft Plans to Become Global Producer, CEO Khudainatov Says
By Stephen Bierman and Anna Shriyaevskaya
Dec. 16 (Bloomberg) -- OAO Rosneft, Russia’s state-owned oil company, will set out a plan next year to become a global producer “on all continents,” Chief Executive Officer Eduard Khudainatov said.
The company is seeking partners overseas, Khudainatov told reporters in Moscow today. Rosneft will spend $10 billion to build a petrochemicals complex in Russia’s Far East, he said. The company will start building in 2012 and complete the first phase by 2017.
Rosneft, which will pump 119.5 million tons of oil this year, will produce 15 million tons of oil at its Vankor deposit in Siberia next year, where it wants three years of export tax breaks to support production, Khudainatov said. The company will make a decision on the Yurubcheno deposit next year.
Rosneft’s spending in 2010 will be 280 billion rubles ($9.1 billion) this year, Vice President Pavel Fedorov said.
To contact the reporter on this story: Stephen Bierman in Moscow email@example.com; Anna Shiryaevskaya in Moscow at firstname.lastname@example.org.
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Last Updated: December 16, 2010 13:59 EST
Pipelines remain on schedule in Northwestern Russia
Wed, 15 December 2010
Construction works on three pipelines designed to expand capacity on Russia’s gas transmission system into Northwestern Russia are on schedule, a Gazprom management committee has heard.
The linear part of the 900 km Gryazovets – Vyborg gas pipeline has now been completed. The pipeline is designed to supply natural gas from Russia’s Unified Gas Supply System to the Nord Stream Pipeline and to consumers of the Northwestern region.
In addition, nearly 300 km of the 650 km Pochinki – Gryazovets gas pipeline have been built and the 1,300 km, 56 inch diameter Ukhta – Torzhok Pipeline is on track to be commissioned in the third quarter of 2012 after construction commenced in December 2008.
Nikolas Sarkozy and Alexey Miller consider cooperation deepening between Russian and French companies
Paris hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Nikolas Sarkozy, President of France.
The meeting considered cooperation deepening between Russian and French companies in the gas and energy sectors.
Based on the meeting results, Alexey Miller noted that amid the globalization of energy markets Paris could play a key role in building fundamentally new relationships between Russia and Europe and giving a momentum to these relationships.
12/16/2010 05:57 PM
Beltransgaz to continue operating Yamal-Europe pipeline
MINSK, 16 December (BelTA) – The Belarusian company Beltransgaz will continue operating the Yamal-Europe pipeline regardless of Gazprom’s subsidiary enterprise in Belarus, Beltransgaz Director General Vladimir Mayorov told media on 16 December.
Vladimir Mayorov said that Beltransgaz had not received an official notification about the functions and tasks of the new enterprise. “Taking into account existing intergovernmental agreements and protocols signed during the construction of the Yamal-Europe gas pipeline, agreements and protocols signed when Beltransgaz was founded and when it was converted into a joint-stock company, we are confident that Beltransgaz will continue operating the gas pipeline,” said the Beltransgaz Director General.
Gazprom Neft Says Venezuela Oil Venture May Cost $24 Billion
By Stephen Bierman
Dec. 16 (Bloomberg) -- Russia’s largest oil companies and Petroleos de Venezuela SA may spend $24 billion tapping the South American country’s Junin-6 heavy oil field, according to OAO Gazprom Neft.
The venture will make an investment decision in 2013 on the project, which aims to start output at 40,000 barrels of oil a day that year, Yuri Lyovin, project head at Gazprom Neft, which is leading the Russian group, said in an interview with Energy Intelligence posted on the company’s website.
Investment will be divided according to equity shareholding, with PDVSA assuming 60 percent and the Russian group 40 percent, he said. The group will need to borrow to fund the project, he said.
The Junin-6 deposit may hold 53 billion barrels of oil reserves, and the venture aims to reach peak output of 450,000 barrels a day in 2017, Lyovin said. OAO Rosneft, TNK-BP, OAO Lukoil and OAO Surgutneftegaz are also partners in the venture. Gazprom Neft is the oil arm of state-controlled OAO Gazprom, Russia’s gas export monopoly.
To contact the reporter on this story: Stephen Bierman in Moscow firstname.lastname@example.org.
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Last Updated: December 16, 2010 09:55 EST
Noyabrskneftegaz Marks 700 Million Ton Crude Production Mark
Gazpromneft-Noyabrskneftegaz, a Gazprom Neft subsidiary, will celebrate producing its 700-millionth ton of crude today, the company reported in a news release.
This marks the aggregate production of crude in Noyabrsk, Vyngapurovskiy and Muravlenko. The 600-millionth ton was produced in May.
Gazpromneft-Noyabrskneftegaz is the biggest oil producing enterprise in Yamal and has been operating since 1981.
The enterprise currently operates 31 oil fields in the Yamal-Nenets and Khanty-Manskiysk autonomous districts.
Copyright 2010, Oil and Gas Information Agency. All rights reserved.
Eni To Supply Gas To Croatia's INA In Place of Gazprom
The Croatian national oil and gas company INA has signed a contract with Italy's Eni for supplies of natural gas for three years after the current contract with Gazprom ends, Reuters reports.
Deliveries are to begin on January 1, when INA's contract with the Russian gas monopoly expires. Eni will supply Croatia with 750 million cubic meters of gas a year.
"INA is exterting efforts to stabilise the supply of gas to Croatia and has signed the best possible contract at the moment", a representative of the Croatian company said.
Croatia consumes 3 billion cubic meters of gas a year, 60 percent of which is supplied from its own gas fields.
Copyright 2010, Russian Economy Ministry Statistics Department. All rights reserved.