| TOPIC OF THE ISSUE |
 Fruitful expansion
Russia's oil&gas industry has entered a stage of fast-paced development. Although crude production growth rate fell from 10-13% on the turn of the century to 2.5% in 2005, there are a number of other factors supporting positive outlook. The market enjoys rapid growth of crude and oil products exports and, more to the point, positive changes in refining segment and on the domestic oil products market. The companies which predicted the developments, right now roll in high cotton. |
| PERSON OF THE ISSUE |
 Don't trust, don't fear, don't pray?
Shukhrat Danbai, director, economics and finance, Pavlodar refinery
The oil business requires guts and courage. The officials, be they of domestic origin or from adjacent states, can easily spring a surprise on the business, putting it on the survival edge. The OilMarket for some time have been observing the uneasy struggle of Kazakh refiners at Pavlodar refinery. |
| PHOTO OF THE ISSUE |
 Wrestling with a heavyweight
Visit to China of Russian President Vladimir Putin marked the new dimension in partnership of the two nations. |
| EXPLORATION AND PRODUCTION |
 A tale of frontier fields
The government of Ukraine proposes owners of illegal licences for oil and gas production to reimburse the state some $891mn. The owners view this as blackmail. |
| TRANSPORTATION |
 CPC under pressure of delays
The 2005 was a milestone for Caspian Pipeline Consortium (CPC) — the consortium managed to exceed the design capacity. In 2005, CPC crude exports totalled some 700,000 b/d; in 2006 the same volume is expected. The CPC is highly reliable, secure and efficient way of crude transportation. |
| REFINING |
 Up the downstream stairs
Many world economies have lately pinned high hopes on Russia, a country often seen as one of the last frontiers of hydrocarbons production and one of those regions likely to satisfy the lion's share of world energy needs in the near future. At the same time, Russian oil companies have to invest increasingly in refining and sales. Traditionally, this segment of oil industry is dubbed «downstream». OilMarket Editor-in-Chief Dmytro Mossienko enjoyed a recent opportunity to meet with Tony Considine in London. Considine is the executive vice-president of TNK-BP Downstream. They discussed the outlook for Russian oil companies in this segment of the market. |
| DOMESTIC MARKET |
 The legal stand-off on capital's fuel market
There is, finally, a light in the end of the tunnel in protracted battle between Moscow authorities and the local owners of gasoline stations. The Prosecutor's office voided decisions of Moscow government on tightening the quality of motor fuel sold in Moscow. And yet, though more than a fortnight passed since the prosecutor had stamped the paper, the decision is still in force. Also, Moscow authorities are unable to ensure much-desired sustainable fuel supply to the capital. The key reason — lack of demand, which thwarts all efforts aimed at upgrading the refining segment. |
| NATURAL GAS |
 A foothold on Asia-Pacific market
From Sakhalin-2 to Sakhalin 3, it's a crowhop
Sakhalin-2 is the largest project in Russia's with direct foreign investment and one of the largest integrated oil&gas projects globally. It is also the first Russian PSA project (the production sharing agreement was signed on 22 June 1994 by Russian Federation, represented by the government, Sakhalin administration and Sakhalin Energy Investment Company Ltd.). Royal Dutch/Shell owns 55% of the company, Mitsui — 25%, Mitsubishi — 20%. The PSA on Sakhalin-2 project specifies that oil&gas reserves of the project owned by Russia, while the company-operator develops the fields ensuring the financing required for the project. |
| COMPANIES |
 Losing the steering
Yukos bankruptcy will inevitably result in Rosneft taking over the company's assets
Russian President Vladimir Putin only couple years ago stated that the authorities are uninterested in Yukos bankruptcy — and yet, the ruin of the company could be a matter of few months. The creditor banks filed a suit to Moscow arbitrage court asking to deem the company bankrupt. Rosneft is expected to be the key beneficiary of the case — the company has already incorporated Yukos former crown producer Yuganskneftegaz. Yukos' Moscow managers seem to have already accepted the possible outcome, having entered conflict with the company's London-based management which resists transferring the assets of former Khodorkovsky empire to Rosneft. |
| COMPANIES |
 The long-anticipated deal nears conclusion
Mazeikiu Nafta negotiations get rolling
Earlier suspended for an unspecified period, negotiations on the Mazeikiu Nafta sale finally moved off dead centre. Lithuanian Prime Minister Algirdas Brazauskas announced a buyer has been found, though he did not name the company. The scarce words of Lithuania's PM cut down the list of potential buyers but still leave a few scenarios of further development. |
| COMPANIES |
 A nominee for takeover?
Surgutneftegaz 2005 report demonstrated record boost in hydrocarbons production. The company also announced its 2006 plans, which include growing production, implementation of new technologies, investments in exploration sector and new acquisitions. Still, regardless of high-paced development of Surgutneftegaz, the market is full of takeover rumours. The experts place the company at one of the top rows in the list of takeover candidates. |
| COMPANIES |
 Pure Water — Strictly Business
The making of a successful company
The OilMarket met with Victor Redko, president and CEO of Jurby WaterTech International, during his recent visits to Moscow as well as on the oil industry IP Week in London. We enjoyed an opportunity to talk about his company's core business of water treatment and energy saving technologies for upstream and refining industry. |
