Gazprom Neft NEWS

Russia tightened its gas squeeze on Europe on Monday as Gazprom said supplies through the Nord Stream 1 pipeline to Germany would drop to just 20% of capacity. Gazprom said flows would fall to 33 million cubic metres per day from 0400 GMT on Wednesday - a halving of the current, already reduced level - because it needed to halt the operation of a Siemens gas turbine at a compressor station on instructions from an industry watchdog. Germany said it saw no technical reason for the latest reduction, which comes as Russia and the West exchange economic blows in response to what Moscow calls its special military operation in Ukraine.

Global energy prices have soared since last year as economies emerged from Covid pandemic lockdowns. Prices have risen further in the wake of Russia's military operation in Ukraine.

Hungary inks a deal to buy 250 million cubic metres of liquefied natural gas per year from Royal Dutch Shell for six years. It’s Hungary’s first long-term deal with a western company. It will secure 10% of it’s supply from the west. Before, Hungry has relied mostly on Russian gas and has never had a long-term supply agreement with any supplier other than Russia’s Gazprom.

Energy major Shell denied Russian Arctic oil JV with Gazprom, Meretoyakha Neftegaz. This decision has been taken keeping in mind the falling investment in the energy sector projects and fragile crude demand. Shell said, "Due to challenging external environment Shell will not pursue the completion of the deal to create a joint venture on the basis of Meretoyakha Neftegaz".

While addressing a gathering of Russia's top businessmen on Wednesday, Putin said that Russia has a “pipe-laying vessel” to complete the construction of the Nord Stream 2. Russian President also informed that the construction of the pipeline will be delayed due to the sanctions. Pipe-laying vessel, Academic Cherskiy was bought by Gazprom to use if European companies denied service for Nord Stream 2.

Russian news agencies reported on Saturday that Gazprom will pay $2.9 billion to Ukrainian energy firm, Naftogaz to put an end to a long-running dispute over transit fees for gas transferred to Europe. CEO, Gazprom said that in return for the payment Naftogaz had agreed to drop all other legal action. The existing transit contract between the two ex-Soviet nations elapses at the end of the year.

Russian gas producer Gazprom has reported a fall in non-CIS gas exports in the period of Jan-Aug this year. There has been a decline of 4.5% in natural gas exports outside the former Soviet Union. Although the output of the company has increased by 1.7% reaching 331 bcm in the same period. Gazprom also revealed that the company's gas exports to Europe and its prices will fall in 2019.

Russia’s natural gas giant, Gazprom has said that despite the threat of US sanctions, work at the controversial Nord Stream 2 pipeline will continue since the pipeline is "past the point of no return". The $12-billion Nord Stream 2 will amplify Russian gas shipments to the EU's biggest economy, Germany. The final major hurdle in the way of Nord Stream 2 is obtaining approval from Denmark.

Despite a decrease in export volumes, the Russian gas producer Gazprom, has reported an increased net income in the January-March quarter. A 44% hike in the quarterly net profits has been observed whereby, the quarterly revenue rose to 2.29 trillion roubles from 2.14 trillion in the previous year. Higher sales and prices of gas are instrumental for this upturn.

Baltic LNG project of Gazprom is under progress and the Russian gas producer was looking for advanced technology to be used in it. Now, the firm has decided to go with the technology made by Linde or Royal Dutch Shell. "We've looked at the efficiency of both technologies and they basically have the same indicators in terms of workability. The rest is a question of negotiation", said Gazprom's board member.

Energy major, Royal Dutch Shell has decided to leave a Baltic LNG project which is led by Russia's Gazprom. This will pose a challenge for the Russian state gas major to take forward this project with limited access to Shell's technology and no funds from the Anglo-Dutch company. Shell has taken this decision after witnessing the struggle of Western firms to expand because of the pressure of US sanctions.

World’s largest oilfield services company, Schlumberger has inked an agreement with Russian state-run Gazprom Neft for technological cooperation in well logging. The two sides will join forces to integrate the latest logging technologies into the expert geophysics company. The oilfield services giant will offer engineering support to its partners and train staff of the operating units of the company.

The Board of Directors of Russia’s Gazprom have agreed on the company’s LNG bunkering plan. The company will continue its work of developing infrastructure to produce and market LNG as a marine fuel. A group statement stated “Gazprom continues to build the LNG production, storage and shipment complex near the Portovaya compressor station. It is planned to use the plant’s output to, inter alia, bunker marine vessels in Russia.”

Russian gas giant, Gazprom has signed a Memorandum of Understanding (MoU) with Japan’s Itochu Corporation on the Baltic LNG project. Chairman of the Gazprom Management Committee and CEO, Itochu Corporation held a working meeting in St. Petersburg. With this agreement, Gazprom and Itochu have confirmed their interest in potential collaboration in the framework of the project.

Focusing on digital transformation, Gazprom Neft has decided on improving the efficiency of oil business processes through it. The board of directors of the company have reviewed and approved on the use of innovative digital technologies for the same. Gazprom is developing its strategy for the digital transformation of business, the first stage of which is expected to finish by 2022.

In order to develop and embrace new technologies to increase oil recovery, Russia’s Gazprom Neft and China National Petroleum Corporation (CNPC) have come together as technical partners at the Eastern Economic Forum. The objective of the partnership also includes developing advanced techniques for polymer and surfactant flooding. The first step in the process would be a feasibility study for surfactant flooding which will take place at the Sutorminskoye field.

Gazprom, gas giant of Russia announced its Q2 report. The company’s profit surged and jumped to $3.8 billion. The numbers of the company beat all the expectations of the analysts. Gazprom gained profits from the increasing fuel prices. The shares of gas major increased by 1.1%. Gazprom has shipped over 101 billion cubic meters of natural gas to EU and accounted for 34% share in the gas market of Europe.

Chairman of the Management Committee of PJSC Gazprom recently met with acting Governor of Yamalo-Nenets autonomous area to discuss the key priorities of cooperation. The parties affirmed their commitment towards the continuation of constructive and mutually beneficial cooperation between the company and the regional government. 90% of Gazprom gas is produced from the fields of Yamalo-Nenets, and the area has seen RUB 884.7 billion investment in the last 5 years.