A letter to the President
The Ministry plans to announce an auction for Elginskoe oil field in the first half of July 2016, to be held in September, told journalists the Minister of natural resources Sergey Donskoy. According to him, the Ministry sent to the government a draft order on changes to the terms of the auction on this site. Remain liable for the processing of all oil deposits on Russian NPZ and achieve 95% utilization of associated petroleum gas quotes the Minister TASS.
100 million tons of oil
Elginskoe oil field in Western Siberia — one of the largest explored deposits in Russia; is part of the Priobskoye field, different parts of which are already developing “Rosneft” and “Gazprom Neft”. Its reserves amount to 103 million tonnes.
For comparison, the reserves of them. Trebs and them. Titov (played in 2011) who develop “Bashneft” and LUKOIL, are estimated at 140 million tonnes of oil, the potential of the Vankor field of Rosneft, the largest in Eastern Siberia, and 500 million tons of oil and condensate and 182 billion cubic meters of gas.
On the sidelines of the St. Petersburg international economic forum Donskoy said that the auction requires the participation of a foreign investor with a share less than 50%. As previously wrote RBC, as such investor’s proposed Arab sovereign Fund Mubadala in a consortium with the Russian direct investment FUND. This was in March, the head of RDIF Kirill Dmitriev has asked President Vladimir Putin, who on may 23, put in his letter a visa “agree”.
A month later, on June 22, Deputy Prime Minister Alexander Khloponin, who oversees the subsoil, wrote a letter to Putin, in which he proposed “for the purpose of execution of the order” the President to make two changes to the auction conditions at Elginskom field (a copy of the letter is at RBC). A source in the Ministry confirmed the text of the letter.
According to the proposal Khloponin, participation in this auction will be able to take only one Russian company that will employ a minority of the foreign company are directly or indirectly under the control of the state “is not entered against the Russian Federation of restrictive political or economic measures, i.e. sanctions. This minority also needs to be a legally binding agreement with the applicant on Elginskoe field (or its shareholders) to Finance long-term projects in Russia worth at least $4 billion And of this amount should be invested in such long-term projects. Mubadala to date, have invested in Russian projects of at least $800 million in contrast to, for example, from European investors outside the state, entered against Russia sanctions.
As a second condition the applicant must provide documentation of guaranteed access to processing facilities not less than 95% of associated petroleum gas produced at Elginskom field, with a coefficient of extraction of target components is not less than 0.95, says Khloponin.
These two conditions are proposed to the disposal of the government on the auction signed on may 25, Prime Minister Dmitry Medvedev. Representatives Khloponin, Putin refused to comment on “official correspondence”.
Among the main contenders for Elginskoe field Khloponin calls “Rosneft”, “Gazprom and its subsidiary Gazprom Neft, LUKOIL, Surgutneftegaz, NOVATEK and Independent oil and gas company (NNK). According to him, these seven companies have “expressed interest” in obtaining licenses to declared conditions. And a number of interested parties suggests that the starting fee (5,35 bn) can be significantly exceeded during the auction, says Deputy Prime Minister.
But the source of RBC in the Ministry of environment believes that the proposed conditions will reduce the number of applicants for participation in the auction, as not all will be able to negotiate with the Arab Fund (after the letter Dmitrieva Putin Mubadala is considered the main contender-a minority shareholder) and decide to recycle almost all of the gas from the field. In his opinion, the absence of serious struggle for the asset can reduce expected revenues.
In the spring of 2015 predpravleniya “Gazprom” Alexey Miller asked President Vladimir Putin to instruct the government to include in the tender documents for sale of land a few requirements for licensee. One of them is to provide processing of associated petroleum gas at the current Russian gas processing plants near the fields.
Miller wrote directly that the presence of such requirements will allow “Gazprom oil” “to form a more competitive position and to offer the most effective scheme of development of a subsoil”. To Refine oil, the company will at the Omsk refinery, and gas — priobskiy gas processing plant. Official representatives of “Gazprom oil” has also expressed interest in participating in the auction.
The source of RBC, close to “Gazprom oil” and the employee of a competitor previously told RBC that the involvement in a project to develop Elginskogo deposits Mubadala conceived in the interests of “Gazprom oil”. Her representative is not commented. “Gazprom Neft” is discussing with foreign partners participation in the Russian projects of the company, told reporters the head of “Gazprom oil” Alexander Dyukov at the forum in St. Petersburg. “This is being discussed on a number of projects with several foreign partners. It and production projects, and projects in the downstream (oil refining and selling of finished petroleum products. — RBC), including in Russia,” he said, without specifying a list of companies and projects.
At a press conference on June 10, answering the question of RBC, he said that the talks with Mubadala, “Gazprom oil” at that time did not lead.
The Dean of geological faculty of the University of oil and gas. Gubkin Alexander Lobusev believes that the greatest chances of fulfilling all of the conditions for participation in the auction for Aginskoe Deposit at “Gazprom” or “Gazprom”, because they have access to a gas pipe for injection of associated petroleum gas in there, and ready power for processing. Other companies, he said, will have to organise the costly processing associated gas from scratch that can make unprofitable project Economics.
President of LUKOIL Vagit Alekperov in an interview with RBC on 16 June said that Elginskoe field interesting company. “We always work with partners. And Mubadala is one of the best partners that can be from oil companies, so we don’t have any objection against the inclusion in the terms of the commitments involved in the project. — RBC)”, — he said. A source close to LUKOIL, said that the obligations for the processing of associated petroleum gas “not an obstacle” for companies to participate in bidding.
“Rosneft” in 2014, there are strategic cooperation agreement with Mubadala. It provides for potential participation of Mubadala in the development of the oil fields of Rosneft in Eastern Siberia and Rosneft participation in international projects Mubadala.
In March 2016, the press service of the Kremlin before Putin’s meeting with crown Prince of Abu Dhabi Mohammed al Nahyan reported that “Gazprom” and “Rosneft” is interested in cooperation with companies from the UAE. The comment of the representative of “Rosneft” according to the new terms of the auction for Elginskom field to failed: it is not representative answered the call RBC.
Representatives of the FUND, NOVATEK and LUKOIL declined to comment. Queries in Surgutneftegaz, Gazprom and NOC remained unanswered.