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"Rosneft" increases cooperation with the APR countries and develops its Eastern projects
Since the beginning of September, the Russian state corporation Rosneft has signed agreements with Asian partners that are significant for the domestic oil and gas industry.
The main events in the Russian oil industry in September are primarily associated with the last Eastern Economic Forum in Vladivostok, which, by the way, ended on the eve of the Day of the Oil, Gas and Fuel Industry Worker. The main Russian oil company and the main newsmaker in the domestic fuel and energy complex, Rosneft, has signed several important agreements in the capital of Primorye. The company signed an agreement with the Indian ONGC for the sale of 15% in Vankorneft, in addition, a memorandum was signed with the Chinese National Chemical Corporation (ChemChina).
ONGC will receive 2 seats on the board of directors of Vankorneft, it is noted that Rosneft will retain full control over the infrastructure of the Vankor block. Analysts point out that the Indian company has been admitted to one of the most promising oil projects in Russia - a field in the Krasnoyarsk Territory. Our country, according to experts, has never reached a similar level of international cooperation.
Observers state that Rosneft receives the necessary liquidity through the sale of minority stakes. But at the same time, the state corporation does not greatly compromise its own capabilities to control the operational management of its assets.
As for ChemChina, it will receive a stake in the Eastern Petrochemical Company, which is part of Rosneft. Share size and price - to be determined later. So far, the partners have signed a memorandum of understanding regarding cooperation on this project. Recall that VNHK is the construction of a large petrochemical complex in the Far East, the volume of investments was recently estimated at 660 billion rubles. It is planned that part of the financing will be taken over by Chinese partners.
Rosneft, in addition to the conclusion of significant agreements for itself, was noted for several more important statements. First of all, they relate to oil prices and the general state of the world raw material base.
Volatility in the oil market usually cancels out the quality of forecasts - both for prices and for production. The low cost is often attributed to increased hydrocarbon supply. But here's what the head of Rosneft Igor Sechin drew attention to at the FT Commodities forum in Singapore:
“The state of the hydrocarbon resource base is constantly deteriorating. The growth of world reserves of “traditional” oil and gas in 2014 was the lowest in the last 20 years, and the negative trend of decreasing growth has been going on for 4 years. More than 30% of new resources are hard-to-recover. A very limited number of countries currently have the potential for a significant increase in oil and gas production. If in the short and medium term these are mainly the countries of the Persian Gulf, some African countries and, possibly, the United States, then, in the long term, the main hopes for meeting the global demand for hydrocarbons are associated with Russia, Venezuela and Iran. "
According to the head of the oil giant, it is highly likely that during the current investment cycle, oil prices may return to levels that provide an acceptable return on investment for investors. Sechin said that so far low prices have not led to a serious decline in production. However, multinational corporations are increasingly cutting investment. For example, last year oil holdings cut their programs by $ 140 billion, and this year investments may decrease by half as much.
As for Russia, in the foreseeable future it can increase oil production to 700 million tons per year, the head of Rosneft believes. Probably, Asian markets will play an important role here. In particular, the company predicts that oil consumption in China will grow by an average of 2% per year. Some experts agree that in the near future energy resources may actually rise in price.
The country's leadership has taken seriously the development of the regions of the Far East. And Western sanctions pushed Russia to strengthen ties with the countries of the Asia-Pacific region. At the same time, a number of strategic projects have been implemented for several years and bring concrete results. In this respect, the example of the work in the Far East of the largest taxpayer of Russia - OJSC NK Rosneft is indicative. For the company, this is a region of strategic interests, where it implements large-scale and long-term projects.
In 2013, Rosneft invested about 160 billion rubles in the development of projects in the Far East and Eastern Siberia, while payments to the budget of all levels amounted to about 300 billion rubles. Rosneft's investment in enterprises and infrastructure in the Far Eastern Federal District increased by 2011-2013 year from 19 billion rubles to 37 billion rubles, that is, almost twice.
Rosneft is represented in the region by a full production cycle: the company carries out oil and gas production, refining, transshipment and sale of oil and oil products. The importance of its activities for the economy of the Far Eastern regions is difficult to overestimate: it is one of the “whales” on which the Far Eastern Federal District keeps even in the most difficult times. According to Viktor Ishaev, Advisor to the President of Rosneft in the rank of Vice President, Academician of the Russian Academy of Sciences, former Presidential Plenipotentiary in the Far Eastern Federal District and Governor of the Khabarovsk Territory Viktor Ishaev, the company, despite the difficult macroeconomic situation, has retained all its investment projects in the Far East. In particular, we are talking about the creation of a new shipbuilding complex on the basis of the Zvezda plant, the construction project of the Eastern Petrochemical Company (VNHK), the modernization of the Komsomolsk refinery and the construction of the Far Eastern gas liquefaction plant, the development of the Sakhalin-1 project and others.
The seriousness of these intentions is determined not only by the business plans of the largest public oil and gas company in the world, but also by the logic of the development of the entire Russian economy. "Breakthrough to the East", the policy of import substitution, the creation in the Russian Far East of competitive enterprises capable of entering the APR markets with their products and services - such goals and objectives were set by the country's leadership and are contained in the instructions of President Vladimir Putin and documents adopted by the government level. It is quite logical that a special place is given to Rosneft in these programs designed for the medium and longer term. This is a company with almost 70 percent participation of the state, its policy always corresponds to the line determined as a strategic priority for the country as a whole. Moreover, Rosneft has historically worked in the Far East.
Figures and plans
Rosneft is the flagship of the oil and gas industry. These are again not just words, but numbers that you cannot argue with. The results of 2014 speak for themselves: oil and liquid hydrocarbons production amounted to 205 million tons, unit operating costs decreased to $ 3,9 per boe, free cash flow reached $ 16 billion, net debt was reduced by 23,7%. If in 2013 the company paid taxes in the amount of 2 trillion 720 billion rubles, in 2014 - more than 3 trillion. In fact, every fourth ruble in the federal budget is a contribution to the treasury from Rosneft.
In 2014, gas production by Rosneft amounted to 56,7 billion cubic meters. m, which is almost half (49%) more than in 2013. Significant growth was ensured by the efficient integration of new gas assets, including the consolidation of Sibneftegaz, as well as the implementation of a program for the economically efficient use of associated petroleum gas. The planned volume of gas production in the medium term has been contracted, and this allows the company to expand its presence in the Russian gas market. Since October 2014, when exchange trading in natural gas was launched on the site of the St. Petersburg International Commodity Exchange, Rosneft has been actively participating in each trading session.
To take all the riches from the ground
Rosneft is the largest subsoil user on the Russian shelf: the company performs work on 51 areas of the continental shelf of the Russian Federation. Their resource base is 46,1 billion tons of oil equivalent.
One of the areas that Rosneft invariably pays special attention to is geological exploration. As of today, according to the assessment of the independent auditor Degolyer & MacNaughton, proved hydrocarbon reserves according to the SEC classification are 34 billion boe. (4,6 billion toe), recovery of production by an increase in proved reserves - 154%. An increase of 1 billion boe was ensured by efficiently involving reserves (including hard-to-recover ones) into development through production drilling. Modern methods of field development and geological exploration on the base stock of wells have added additional resources to the company - 1,8 billion boe.
As for Sakhalin oil, an anniversary was recently celebrated - 125-anniversary the first exploration work on the island. The history of commercial production of hydrocarbons in Sakhalin dates back to 1928. It was then that the state association of the oil and gas industry was formed in the form of a trust of all-union significance "Sakhalinneft", now "Sakhalinmorneftegaz" - a subsidiary of OJSC "NK" Rosneft ".
For more than eight decades, Sakhalinmorneftegaz has gone from a small trust to a leading enterprise using innovative production methods. So, for the first time in the industry at the Sakhalin fields on an industrial scale, thermal methods of stimulation were introduced, which made it possible to increase the volume of production of high-viscosity oils, the gas-lift method of oil production, including compressor, was developed. The successful experience of Sakhalinmorneftegaz in drilling directional wells under the seabed was subsequently used in the development of Sakhalin shelf projects. Today, Sakhalinmorneftegaz produces 1,6 million tonnes of oil equivalent per year and acts as an operator for more than 30 licenses for the development of Sakhalin oil and gas fields.
In 2014, Russian and foreign oil refineries of Rosneft processed 99,83 million tons of "black gold", which is 10,8% more than in 2013. To a large extent, the growth in refining was ensured at Russian refineries - this became possible thanks to the program of modernization of refineries and the development of production capacities, within the framework of which the construction of complex production units at the Russian refineries took place, as well as the integration of refining assets.
This work is carried out not only in the central regions of the country, but also in Siberia and the Far East. Thus, in December 2014, OJSC NK Rosneft and OJSC AK Transneft signed an agreement within the framework of a joint project for the construction of an oil pipeline branch from the main oil pipeline East Siberia - Pacific Ocean (ESPO) to the Komsomolsk oil refinery. This will ensure the transportation of up to 8 million tons of oil per year to the refinery. Now most of the oil at the KPNZ is transported by rail. The new pipeline will not only ensure the supply of large volumes of raw materials, but will also make this process much safer and more stable. It is planned to finance the design and construction of the oil pipeline branch at the expense of the long-term tariff.
The Komsomolsk Oil Refinery is a subsidiary with which Rosneft has high hopes for the future. It is the largest oil refiner in the Far Eastern Federal District, employing about 2 thousand people. KNPZ produces 22 types of products, including gasoline and diesel fuel, that meet the requirements of the Euro-5 standard. If in 2013 the volume of oil refining amounted to 7,1 million tons, then in 2014 the refinery processed 7,6 million tons, and the quality indicator is especially important: the Komsomolsk refinery has completely switched to the production of gasoline and diesel fuel according to the Euro-5 standard ". The implementation of the project for the construction of a hydrocracking-hydrotreating complex with a capacity of 3,65 million tonnes per year will increase the processing depth to 92,4%. At present, the refinery is assembling metal structures and equipment for hydrocracking-hydrotreating, sulfur and hydrogen production, construction of off-site facilities.
When the modernization program is finally completed, the refinery will be able to produce significantly more oil products, primarily motor fuels, the consumption of which in the Far Eastern regions will grow.
The same goal - saturation of the Far Eastern market with high-quality petroleum products - is served by the company's plans to build a powerful oil refining and petrochemical complex - "Eastern Petrochemical Company" in the Nakhodka region. Its appearance in the region will contribute to the creation of a petrochemical cluster of related industries with a large number of new jobs.
A well-organized sales system for petroleum products is of no small importance. In this regard, for the Far East, it is extremely important to consistently implement such projects of Rosneft as the development of a filling terminal for Knevichi aircraft in Vladivostok, further development and modernization of LLC RN-Nakhodkanefteprodukt, a large sea terminal that transships oil products for shipment to Far Eastern regions of the country and for export. LLC RN-Vostoknefteprodukt, a subsidiary of Rosneft, is successfully operating in the Far Eastern Federal District, which supplies oil products to a total of seven regions of the Far East and Siberia (both wholesale supplies of motor fuels and retail sales through an extensive network of Rosneft filling stations).
The head of the Sakhalin region, Oleg Kozhemyako, said that Rosneft could build an oil refinery in the Okha region in the immediate vicinity of the fields. While the details of the project are being worked out. According to the forecast, at the first stage, the plant will process 150-200 thousand tons of oil per year.
If the "Star" is lit ...
In Primorye, with the participation of Rosneft, a shipbuilding cluster is being created on the basis of the Far Eastern Center for Shipbuilding and Ship Repair (DTSSS). Its core will be the new Zvezda shipbuilding complex in Bolshoy Kamen. The corresponding instruction was given by the President of the Russian Federation Vladimir Putin during a workshop in June 2015. It was especially noted that the implementation of this project will give an impetus to the development of a number of related industries and infrastructure - the so-called "multiplier effect". Apart from Rosneft, the consortium also includes Gazprombank represented by the joint venture CJSC Modern Technologies of Shipbuilding (CJSC STS). The well-known Dutch company DamenShipyardsGroup also showed interest in the project.
The Zvezda shipbuilding complex will become the first large-scale shipbuilding yard in Russia with a processing capacity of up to 330 thousand tons of metal per year. The project is designed for three stages of implementation. The first start-up phase of the SC "Zvezda" is to ensure the construction of medium-tonnage vessels and marine equipment. The second stage provides for the commissioning of a dry dock and full-cycle production workshops for the production of large-tonnage vessels and marine equipment. The commissioning of the third stage is the construction of a dry dock with production workshops for the construction of offshore marine equipment.
At the first stage, it is planned to create an engineering center for up to 300 people in JSC “DTSSS”, which will be engaged in the development of design documentation and technological preparation of production. In the future, the forces of Russian designers and designers at the enterprise will design ships and marine equipment of the full cycle, including the Arctic class. Currently, the primary organizational work has already been carried out, an anchor order has been drawn up.
For the Far East, it is especially important that the new production will create additional jobs (according to calculations - about 10 thousand) and bring significant tax revenues to the regional treasury. As the head of the Ministry for the Development of the Russian Far East, Alexander Galushka, assured, government agencies will take on the role of "investor defenders" and at the same time set as their goal to facilitate the process of attracting qualified personnel to new production and creating infrastructure.
"Golden Eagle" helps "Falcon"
One of the most promising areas of Rosneft's activities in the Far East is participation in the Sakhalin-1 project. This is the first large-scale offshore project carried out in the Russian Federation under the 1996 Production Sharing Agreement. The project involves Rosneft (20%), ExxonMobil (30%), SODECO (30%) and ONGCVideshLtd (20%). A total of 1 million tons of oil were produced under the Sakhalin-64 project, and by 2018 its production will grow by 33% in relation to the current project indicators.
In January of this year, oil production began at the Arkutun-Dagi field - it is it that will allow to bring production under the Sakhalin-1 project by 2018 by more than 10 million of oil per year. All work on the new site, by the way, was completed on time and in compliance with all industrial and environmental safety standards. Commercial oil of the Sokol brand comes from the Berkut oil production platform - the most powerful in the world, allowing drilling of wells with a vertical extension of at least 7 km. When the planned capacity is reached, the production volume will reach 4,5 million tons per year.
Sokol oil is of excellent quality. It has a very low sulfur content of 0,27% and a density of 0,835 - 0,837 kg per cubic meter (36,7 degrees API). Thanks to this, it is more expensive than the Dubai marker for Southeast Asia, as well as the Oman variety. The main buyers of Sakhalin oil are nearby Japan and South Korea, but many shipments go to other countries of the Asia-Pacific region: China, Thailand, etc.
Development of the field, located on the northeastern shelf of Sakhalin Island in the Russian Far East, will increase the total daily production of the Sakhalin-1 project to more than 27 thousand tons. Production from two fields, Chayvo and Odoptu, began in 2005 and 2010, respectively. Oil and condensate reserves at Chayvo - over 15 million tons; gas - about 13 billion cubic meters. In the future, Northern Chayvo will ensure an annual production of about 1,5 million tons of oil on the shelf. Gas will become the initial resource base for the promising Far Eastern LNG plant. For the transportation of hydrocarbons, a special tanker fleet with a deadweight of each vessel of 100 thousand tons is used, as well as escort icebreakers. Tankers have a reinforced ice class and double hulls for safe transportation of goods even in severe ice conditions.
To install the upper base of the Berkut platform, a unique transport operation was carried out to deliver it to the planned point at a distance of more than 2600 km. In the course of fabrication, delivery and installation of the fundamental superstructure, several industry world records were broken at once, including installation in the open sea using the thrust method. The weight of the superstructure is 42 thousand tons, the total weight together with the base is more than 200 thousand tons. This is the largest structure of its kind in the world. At the same time, it absolutely meets strict safety criteria. She is not afraid of 9-point earthquakes, ice, tsunamis, or other cataclysms and force majeure circumstances.
"Berkut" was put into operation by the President of the Russian Federation Vladimir Putin during a video bridge (the first persons of the companies participating in the consortium were on the platform at that moment). The President of Russia emphasized: “The development of Sakhalin - natural resources and the sea shelf - is of great, one might say, national significance for us. And thanks to such projects as the Berkut platform, we can use the richest, but inaccessible deposits, create new industries, new jobs, and generally strengthen the socio-economic development of the most important region for our country - the Far East. "
The continuation of the development of the Sakhalin-1 project is the joint plan of Rosneft and ExxonMobil for the construction of an LNG plant on Sakhalin with a capacity of 5 million tons of LNG per year with the possibility of further increase. The resource base for the Far Eastern LNG project will be the fields on the shelf of the Sea of Okhotsk, developed by Rosneft independently and jointly with partners in the Sakhalin-1 project.
Rosneft in May this year produced the first million tons of oil at the northern end of the Chayvo field. This event took place just eight months after the completion of drilling in this field from the onshore site of the first well in September 2014. Currently, oil production at the field is carried out from two unique extended reach wells with bore lengths of 10825 and 9923 meters. By 2017, production here should increase to 2 million tons of oil per year.
Pure Arctic water
However, the Far East is not only the Pacific coast, but also the Arctic. The issues of its development are now also extremely acute and are discussed in the "highest offices". The company has 26 licenses for shelf areas in the Far Eastern Federal District - in the Sea of Okhotsk, the Laptev Sea, the East Siberian and Chukchi Seas.
The main thing that is required is specific programs, a sequence of actions. As far as the Arctic is concerned, Rosneft demonstrates not only the ability to build business plans on a scientific basis, but also the ability to take on real, meaningful social responsibility. Rosneft performs work on the shelf areas with excess and overfulfillment of license obligations.
The Russian National Committee for Assistance to the United Nations Environment Program (UNEPCOM), chaired by Academician, member of the Presidium of the Russian Academy of Sciences, Chairman of the Interdepartmental Commission on Environmental Safety of the Security Council of the Russian Federation, Nikolai Laverov, supported the initiative of Rosneft and the Russian Geographical Society to develop an interdisciplinary scientific program for the study of the Arctic ... This program will make it possible to formulate the principles of a special regime of economic activity in the region, including clear environmental rules for the development of the shelf.
One of the striking examples of such cooperation between Rosneft and the elite of Russian science is research expeditions. In August, the expedition "Kara-Summer-2015" set sail. It has become the eighth one organized by Rosneft. Specialists from the Arctic Research Center and the FGBU Arctic and Antarctic Research Institute took part in it. Scientists collect data on hydrometeorological and ice conditions in the northern seas in summer from the Viktor Buinitsky research vessel equipped with the necessary deck and laboratory equipment. The route is from the Kara Sea to the East Siberian Sea. The data obtained are necessary to assess the impact of environmental parameters during the development of the Company's license areas.
During a similar expedition of the previous year, specialists from various institutes continued to study the least studied areas in the waters of the northern seas: Kara, Laptev, East Siberian and Chukotka. During the Kara-Summer-2014 expedition, Rosneft, having installed a modern automatic station on Uedineniya Island, completely restored the meteorological observation system in the Kara Sea. Two more similar meteorological stations were re-installed on the Transfiguration Island in the Laptev Sea and on the Zhokhov Island in the East Siberian Sea, which will provide the region with a full-fledged meteorological monitoring complex. The purpose of the research is to localize zones promising for the detection of hydrocarbons. The collected materials will make it possible to make economically feasible and environmentally friendly decisions on exploration drilling and development of a complex for the production and transportation of hydrocarbons.
Rosneft has many areas of work in the Far East. One can assess the prospects of each project in different ways, but all experts agree on one opinion: the company now has the most clearly structured and well-thought-out strategy in the Far East for many decades to come. It is in such business plans that the Far East will really become a “point of growth” and a “starting point” for many new victories for Russia.