Rosneft Commits to $6 Billion in Upstream Investments, Bets on Gas
While confusion over Turkish Stream continues, Rosneft sends leadership messages to markets while Gazprom is strengthening ties with Kazakhstan.
On Wednesday, Russia’s Rosneft confirmed its intention to keep hydrocarbon production stable in 2015-2017, reporting a 49% year-on-year increase in gas production in 2014 - 56.7 bcm.
‘In 2015, Rosneft will continue increasing gas production, improv- ing the efficiency of sales channels and also making preparations for the launch of major gas projects aiming to become a leader among independent gas producers in Russia’ the company led by Igor Sechin wrote in the report released on Wednesday, adding that it will focus on the Minkhovskoye field and the Nenets Autonomous District.
Gas production, which represents 19% of the company’s overall hydrocarbons production, is the main focus of the Russian company. Rosneft is also working to build the required competencies to implement Arctic LNG projects.
In September, it discovered the new Pobeda field in the Kara Sea, having completed drilling of the Universitetskaya-1, which the company defined “the world’s northern-most Arctic well.”
During the annual general meeting in St. Petersburg, Sechin also explained that Rosneft committed to upstream investments for 300-350 billion roubles ($5.6-$6.5 billion) in 2015-2017.
Meanwhile, Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee, and Renato Maroli, Director General of Karachaganak Petroleum Operating (KPO) signed an agreement between KazRosGas and KPO in Astana.
‘The document extends till 2038 the long-term sales and purchase contract for nearly 9 billion cubic meters of gas annually from the Karachaganakskoye gas and condensate field’ reads a note released by Gazprom on Tuesday.
The company led by Alexey Miller and Alexander Medvedev is expected to unveil its strategy during the General Shareholders Meeting to take place on June 22 and 23.
Meanwhile, according to Sputnik, Russian Energy Minister Alexander Novak said that Russia and Turkey should sign legally binding documents for the construction of the Turkish Stream by the end of June. A meeting between Gazprom and Turkish Energy Minister Taner Yildiz should take place next week. On the other hand, Turkey’s Hurriyet reported that Russia’s Kommersant wrote that the negotiations between the two countries are proceeding slower than expected, with the project facing obstacles due to political uncertainties in Turkey.