Russia & CIS ///

Burisma Group deploys most powerful drilling rig in Ukraine

Burisma Group, an international energy group with assets in Ukraine, purchased a U.S. drilling rig SK 3000 with load capacity of 680 tonnes. The 3,000-HP drilling rig, produced by Service King Manufacturing, Inc., was brought into operation in May 2017 at the well No. 6 of the Vodyanovske field (Kharkiv region).

Russia remains open to longer output cuts with OPEC, but mulls exit plan

Russia signaled that it would be willing to prolong the production cuts it agreed with OPEC beyond the first quarter of next year if needed, while also making clear its commitment to the deal wasn’t open ended.

Gazprom Neft begins development of its Otdelnoye oil field

Gazprom Neft subsidiary Gazpromneft-Noyabrskneftegaz has brought its Otdelnoye field located in the northern part of the Surgut District of the Khanty-Mansiysk Autonomous Okrug-Yugra, 70 km from Novosibirsk, into commercial production. Two production wells are currently in operation at the field, with total production running at 170 tonnes/day.

Petro Matad announces postponed drilling campaign in Mongolia, CEO search

Petro Matad, the AIM quoted Mongolian oil explorer has provided an operational update.

Gazprom Neft begins full-scale hydrocarbon prospecting of pre-Jurassic deposits

Gazprom Neft has begun geological investigations in Paleozoic hydrocarbon deposits in the Tomsk Oblast. Thus far, the complex structure of the pre-Jurassic complex has not been deemed an independent geological prospect, investigations into which demand the modification of traditional prospecting methodologies.

Azerbaijan, co-venturers sign amended PSA for Azeri, Chirag and deepwater Gunashli

The Azerbaijan government and the State Oil Company of the Republic of Azerbaijan (SOCAR), together with BP, Chevron, INPEX, Statoil, ExxonMobil, TP, ITOCHU and ONGC Videsh today signed the amended and restated agreement on the joint development and production sharing (PSA) for the Azeri, Chirag fields and the deepwater portion of Gunashli field (ACG) in the Azerbaijan Sector of the Caspian Sea.

Oil & Gas in the Capitals

Jacques Sapir, Contributing Editor

Hope for improved Russian-U.S. relations has evaporated, following a U.S. congressional vote and retaliation taken by the Russian government.

China deepens oil ties with Russia in $9-billion Rosneft deal

A closely-held Chinese oil company agreed to buy a minority stake in Rosneft PJSC for about $9 billion, deepening energy and political ties with Russia amid increasing tensions with the U.S.

OPEC deal extension would benefit Russia, finance minister says

Russia would benefit from extending the accord with OPEC to limit oil production, said the country’s finance minister.

Rosneft, Statoil to move development of North-Komsomolskoye field into the next phase

RN-Exploration and Production LLC, Rosneft subsidiary and Statoil Russia AS, Statoil ASA subsidiary, signed the shareholders and operating agreement at the Eastern Economic Forum. The document is signed with regards to SevKomNeftegaz LLC, an enterprise that will serve as a basis for a future North-Komsomolskoye joint field development.

Gazprom, Mitsui ink framework agreement on small- and mid-scale LNG in Japan

A working meeting between Alexey Miller, chairman of the Gazprom Management Committee, and Masami Iijima, chairman of the board of directors of Mitsui & Co., Ltd., took place at the Eastern Economic Forum 2017 in Vladivostok.

Petrofac awarded $700-million contract on Sakhalin Island

Petrofac has been awarded a contract worth more than $700 million by Sakhalin Energy Investment Company Ltd. for its onshore processing facility (OPF) on Sakhalin Island.

New subsea construction vessel launched in Baku to support Shah Deniz Stage 2

The Shah Deniz consortium is pleased to announce the launch of the Khankendi - a new flagship vessel for the Caspian. The state-of-the-art subsea construction vessel has been specifically designed and built to install the biggest subsea production system in the Caspian Sea as part of the Shah Deniz Stage 2 project.

Zenith Energy provides Azerbaijan field rehabilitation update

Zenith Energy Ltd., the dual listed international oil & gas production company operating the largest onshore oilfield in Azerbaijan, is pleased to release an update regarding the progress of its field rehabilitation activities in Azerbaijan.

Russia likely to back extension of OPEC deal as prices stabilize

Russia is likely to back a further extension of the OPEC agreement cutting oil output, judging that it has helped to stabilize the market, the country’s deputy prime minister said.

Gazprom losing hope for dividend boost as ruble hurts profit

Gazprom PJSC’s profit slumped in the last quarter, cooling the prospect of an increased dividend from the world’s largest natural gas producer.

Lukoil launches production facilities at Gissar in Uzbekistan

Lukoil has reached a progress milestone at its southwest Gissar project in Uzbekistan as it successfully launched the main production and process facilities there.

Russian gas link offshoot taps investors as sanctions swirl

German natural gas network operator Gascade Gastransport GmbH is in talks with investors to raise money for a new pipeline that will carry more Russian fuel directly to Europe.

Gazprom Neft to borrow $2 billion in 2018 in bet on lower rates

Gazprom Neft PJSC, the oil arm of Russia’s natural gas exporter, plans to borrow the equivalent of $2 billion next year, seeing crude markets stabilizing and the country’s central bank continuing to lower rates.

Energy Issues

William J. Pike, World Oil

Producers have recently reacted to stagnant oil prices with announcements of cuts in capital spending.