RUSSIA - Part 2 - The Oil & Gas Producers
There are 21 Russian Russian
associated in some way with Russia.
a breed of cats with short, dense, silver-tipped blue-colored coat and vivid green eyes. groups and companies accounting for the bulk of the Russian Federation's crude oil output of 6m b/d b/d
barrels per day . Gazprom JSC Gazprom (RTS:B>GAZP MICEX:B>GAZP LSE: OGZD; Russian: ОАО Газпром, sometimes transcribed as Gasprom , the biggest firm in Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). , produces more than 96% of the federation's natural gas requirements and exports.
The integrated groups own most of Russia's 28 oil refineries This is a list of oil refineries. The Oil and Gas Journal also publishes a worldwide list of refineries annually in a country-by-country tabulation that includes for each refinery: location, crude oil daily processing capacity, and the size of each process unit in the refinery. . Firms in relatively more autonomous member-republics include Tatneft Tatneft OAO is a Russian vertically-integrated oil and gas company with headquarters in Almetyevsk, Tatarstan. The company was created in 1950 by the merger of several oil companies and related industries. of Tatarstan Tatarstan (tăt'ərstăn`, –stän`), Tatar Republic (tä`tər, tətär`), or Tataria (tətär`ēə), republic (1990 est. pop. and Bashneft of Bashkortostan Bashkortostan (bäshkôr`tĭstän') or Bashkir Republic (băshkĭr`), constituent republic (1990 pop. . There are also independent Russian oil refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar and distribution companies (see profiles on following pages and Downstream From the provider to the customer. Downloading files and Web pages from the Internet is the downstream side. The upstream is from the customer to the provider (requesting a Web page, sending e-mail, etc.). Trends). There are two categories of oil producing joint ventures: JVs operated by foreign companies, like Polar Lights the aurora borealis or australis.
See also: Polar involving Conoco, and JVs operated by Russian companies This is a list of companies from Russia. See List of banks in Russia for banks.
Company Industry MICEX RTS
1C Company Software - -
Acron (company) Chemicals - RTS:B>AKRN
Aeroflot Airlines MICEX:B>AFLT RTS:B>AFLT
Alfa Group Investment - - . The second category includes Ortneft, Vatoil, LUKoil-AIK and Yoganoil.
THE MAIN RUSSIAN OIL COMPANIES* Market Captln Production Mkt Cap/ Reserves Company (US$m) ('000 b/d) Production (m barrels) LUKoil 13,187 1,235 29.3 11,640 Yukos 4,832 708 18.7 9,728 Surgutneftegaz 4,191 675 17.0 5,460 Sidanco 3,719 445 22.9 9,633 Tatneft 2,601 488 14.6 6,090 Sibneft 2,439 361 18.5 4,145 Slavneft 2,373 257 25.3 1,300 Eastern Oil Co. 1,907 229 22.8 2,100 Tyumen 1,687 420 11.0 5,770 Onaco 1,061 159 18.3 1,430 KomiTek 395 102 10.6 1,625
* By Feb.9, 1998. Source: Natwest Markets Europe as published by FT Energy Economist in April 1998.
RUSSIA'S MAIN INTEGRATED OIL COMPANIES LUKoil Producing Units Refineries Langepasneftegaz Volgograd Uraineftegaz Perm Kogalymneftegaz Novoufimsk Permneft Ufa Niznevolzhskneft Astrakhanneft Kaliningradmorneftegaz Arkhangelskgeoldobycha LUKoil crude oil/condensate production Mid-Aug. 1998: 1.3 million b/d LUKoil's usable refining capacity: 400,000 b/d Yukos Yuganskneftegaz Novokuibyshev Samaraneftegaz Kuibyshev Syrzan Crude oil/condensate production Mid-Aug. 1998: 730,000 b/d Usable refining capacity: 590,000 b/d. Surgutneftegaz Producing Units Refineries Surgutneftegaz Kirishi Crude oil/condensate production Mid-Aug. 1998: 685,000 b/d Usable refining capacity: 390,000 b/d Sidanko Varyeganneftegaz Saratov Kondpetroleum Angarsk Chernogorneft Khabarovsk Udmurtneft Saratovneftegaz Crude oil/condensate production Mid-Aug. 1998: 460,000 b/d Usable refining capacity: 750,000 b/d Tyumen Oil Co. Nizhnevartovskneftegaz Ryazan Tyumenneftegaz Obneftegazgeologiya Crude oil/condensate production Mid-Aug. 1998: 450,000 b/d Usable refining capacity: 360,000 b/d Sibneft Noyabrskneftegaz Omsk Crude oil/condensate production Mid-Aug. 1998: 400,000 b/d Usable refining capacity: 566,000 b/d NK Rosneft Dagneft Komsomolsk Kalmneft Krasnodar Krasnodarneftegaz Tuapse Purneftegaz Sakhalinmorneftegaz Stavropolneftegaz Termneft Crude oil/condensate production Mid-Aug. 1998: 270,000 b/d Usable refining capacity: 270,000 b/d Slavneft Megionneftegaz Mozy (Belarus) Yarolavl Crude oil/condensate production Mid-Aug. 1998: 260,000 b/d Usable refining capacity: 680,000 b/d East Oil Co. (VNK) Tomskneft Achinsk Tomskneftegazgeologiya Crude oil/condensate production Mid-Aug. 1998: 235,000 b/d Usable refining capacity: 300,000 b/d Orenburg Oil (Onako) Orenburgneft Orsk Crude oil/condensate production Mid-Aug. 1998: 160,000 b/d Usable refining capacity: 200,000 b/d KomiTek KomiNeft Ukhta Crude oil/condensate production Mid-Aug. 1998: 110,000 b/d Usable refining capacity 150,000 b/d:
AUCTIONS OF FEDERAL OIL SHARES: NOVEMBER-DECEMBER 1995
% Of Shares Floor Price Company Offered Price Paid Winner Surgutneftegaz 40 $66.6m $88m SNG Pension Fund Lukoil 5 $35m $35.01m Lukoil Via Imperial Bank Yukos 45 $150m $159m Bank Menatep Sidanko 51 $125m $130m International Finance Corp Sibneft 51 $100m $100.3m Stoiochny Bank Sberezhny Nafta Moskva 15 $20m $20.01m Nafta Moskva
As this table shows, the amounts of money paid for large shares in these companies in the first privatisation Noun 1. privatisation - changing something from state to private ownership or control
denationalisation, denationalization, privatization
social control - control exerted (actively or passively) by group action wave were ridiculously low (see background in the 1996 survey of Russia, Vol. 47).
The oil industry in Russia is facing enormous problems. These range from a deep financial crisis in the country to lack of modern equipment and technology. As a result, the average production per well - excluding more than 40,000 wells made idle in recent years - is less than 70 b/d. To compare, the average production per well in Saudi Arabia Saudi Arabia (sä`dē ərā`bēə, sou`–, sô–), officially Kingdom of Saudi Arabia, kingdom (2005 est. pop. is 5,780 b/d. For completely different reasons, the average in the US is 12 b/d and in Canada it is 33.5 b/d.
The oil producing companies, from LUKoil down to the smallest one, have all been hit hard by the fall in world crude oil prices this year. They have also been hit by higher taxes and excise A tax imposed on the performance of an act, the engaging in an occupation, or the enjoyment of a privilege. A tax on the manufacture, sale, or use of goods or on the carrying on of an occupation or activity, or a tax on the transfer of property. fees imposed on them by the Moscow government. Costs of crude oil being produced, together with government taxes and pipeline fees, have risen to almost $10/barrel. This is the level to which the market price of Urals, Russia's main export blend of crudes, has reached in recent months.
The Russian oil companies have sought "strategic alliances" and partnership deals with Western majors. Following LUKoil's JVs with Arco and Agip, a strategic link was agreed in November 1997 between Gazprom and Shell and between BP and Sidanco. An Elf-Sibneft link is under negotiation in parallel to a Yukos-Elf link being negotiated separately as an alternative. A Yukos- Sibneft merger, in which Elf elf, in Germanic mythology, a type of fairy. Usually represented as tiny people, elves are said to dwell in forests, in the sea, and in the air. Although they can be friendly to man, they are more frequently vengeful and mischievous. and Mobil were to be involved as partners to
create the biggest oil group in Russia called Yuksi, was agreed in late 1997, but this collapsed in May 1998. Each of the other companies is negotiating some form of alliance with a Western major (see Downstream Trends).