RZD’s net profit for 2010 to top plan by 100% - Yakunin (Part 2)
ST. PETERSBURG. Oct 14 (Interfax) - Russian Railways (RTS: RZHD) (RZD) expects to post 100% more in net profit for 2010 in comparison with the company's initial plan, the company's president, Vladimir Yakunin, told journalists in St. Petersburg on Thursday.
"We forecast that net profit will top the planned results twofold by year's end," he said.
It was earlier reported that RZD, at the end of 2009, planned to post 17.1 billion rubles in net profit for 2010. "We have pretty much passed the forecast increase in transport, two times more than predicted. So, our total profit will increase by at least two times. I think that [the company will make] just under 40 billion [rubles]," Yakunin said.
RZD's net profit came to 14.4 billion rubles in 2009 with sales revenue at 1.05 trillion rubles.
http://www.themoscowtimes.com/business/article/clean-energy-focus-for-jv/420008.html 14 October 2010
A Russian-Kazakh fund focused on nanotechnology and targeting investment of up to $150 million is likely to put the majority of its money into clean energy, its managing partner said.
London-based asset management group I2BF Venture Capital and VTB Capital have been hired to manage the fund.
“A big part of the opportunity in nanotechnology is clean energy — solar, power storage, composite materials used in wind and catalysts for biofuels,” said Ilya Golubovich, managing partner of the fund.
http://www.themoscowtimes.com/business/article/for-the-record/420009.html 14 October 2010
Sberbank wants the government to sell its shares through a stock exchange rather than directly to a strategic investor, deputy chief executive Anton Karamzin said Wednesday, adding that it would have a positive effect on the banking sector. (Bloomberg)
Israel Aerospace Industries said it reached an agreement to sell to Russian state-run defense company Oboronprom $400 million of unmanned aerial vehicle systems over a three-year period, the company said Wednesday. (Bloomberg)
LUKoil plans to start drilling at its West Qurna-2 field in Iraq in 2011 and aims to produce 120,000 barrels a day by the end of 2012, Paul Hawkins, director of supply and trading at LUKoil unit Litasco, said Wednesday. (Bloomberg)
Magnitogorsk Iron & Steel Works signed an agreement to supply galvanized steel to LG Electronics, the company said Wednesday. (Bloomberg)
Norilsk Nickel said Wednesday that it plans to invest about $1 billion by 2015 to cut sulfur-dioxide emissions fivefold and improve the environment in the far northern mining town of Norilsk. (Bloomberg)
Activity in the Oil and Gas sector (including regulatory)
Supplies of Russian gas to Armenia resumed
http://news.am/eng/news/34487.html October 14, 2010 | 12:41
Supplies of Russian gas to Armenia via Georgia have been resumed, said Tamara Shoshiashvili, spokesperson for Georgian Oil & Gas Corporation (GOGC).
According to her, GOGC has completed repair works on Kazakh-Saguramo section according to the schedule and gas transit to Armenia will resume on October 14.
The supply of Russian gas was suspended on October 11 due to repair works on North-South gas pipeline.
10/14 11:49 ROSNEFT RECEIVES YUZHNO-RUSSKY SECTION IN BARENTS SEA AND VOSTOCHNO-PRINOVOEMELSKIE SECTIONS 1,2 3 IN KARA SEA
Exxon Seeks to Double Sakhalin-1 Budget, Vedomosti Says
Oct. 14 (Bloomberg) -- Exxon Neftegas Ltd., the operator of the Exxon Mobil Corp.-led Sakhalin-1 field, is seeking to double the budget for the oil and gas project to $100 billion, Vedomosti said, citing unidentified government officials.
The Sakhalin-1 partners include state-controlled OAO Rosneft, Russia’s largest oil producer, and ONGC Videsh Ltd., which each own 20 percent. Japan’s Sakhalin Oil & Gas Development Co. owns 30 percent and Exxon holds 30 percent.
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Last Updated: October 13, 2010 23:52 EDT
U.S. Exxon Neftegas asks Russian government to double Sakhalin-1 costs - paper
U.S. company Exxon Neftegas, the operator of the Sakhalin-1 oil and gas project, has suggested that the Russian government double the project's capital and operating costs to $47.9 billion and $52.2 billion respectively, Vedomosti business daily reported on Thursday, quoting an unnamed authorized governmental body source and a ministry official.
The updated development and extraction project presented by Exxon to the authorized governmental body also stipulates delays in the development of the oil fields. The project proposes shifting the Odoptu and Arkutun-Dagi deposit development deadlines for two years and the Chaivo field second stage for four years, one of the sources told the paper, adding however that the general deadline of the project had not been changed.
According to the old document approved in 2003, Sakhalin-1 capital costs were expected to amount to $20.6 billion but two years later Exxon altered the project's concept without any government approval, announcing the need to raise the costs to $22.5 billion while its operating costs grew to $25.8 billion from $22.1 billion, the paper said.
As a result, the Russian government based its projections on one document while the operator referred to another document, an official familiar with the procedures told the paper.
In June 2010, Alexander Khoroshavin, the Sakhalin region governor, warned Exxon that the government would find another operator, while the authorized government body rejected the company's 2010 cost estimate, agreeing to approve only $972.8 million out of the requested $3.5 billion.
A source familiar with the authorized government body's stance said government officials were unhappy with the operator's new cost estimate. Exxon's evaluation is based on the industry inflation indicators provided by the CERA agency and gives no clear-cut idea on the causes for cost increases, the paper said.
An ExxonMobil spokesman declined to comment on the project's details, which could make Sakhalin-1 the most expensive project in the Russian oil sector, the paper said.
Russian government officials also declined to comment on possible changes in the project's costs, the paper said.