Russia confirms six bids entered for Trebs, Titov fields

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Sept. 23 -- Russia’s Mineral Resources Agency said six oil companies have entered bids in a tender scheduled for Dec. 2 to develop the Arctic Trebs and Titov oil fields.

The firms include Lukoil subsidiary Lukoil-Komi LLC, Bashneft, TNK-BP subsidiary OJSC Samotlorneftegaz, Surgutneftegas, Gazprom Neft, and Nord Imperial LLC, which is part of India's Oil & Natural Gas Corp. group.

Analyst IHS Global Insight noted the absence of a bid from Russia’s OAO Rosneft, calling it “a surprise decision.” The analyst, citing Rosneft Pres. Eduard Khudainatov, said the firm plans to focus on existing projects.

“Rosneft already owns a good set of very promising projects in East Siberia, offshore, and other regions,” said Khudainatov, who recently replaced Sergei Bogdanchikov as the company's president.

However, the analyst also speculated that Rosneft's decision to skip the auction could be strategic, “as the company may be counting on using its leverage as Russia's top oil producer to strike a partnership deal with whichever company wins the bidding, particularly if the ONGC affiliate wins the auction.”

Then, too, IHS Global Insight also suggested that Rosneft may be opting simply to stay out of the auction on principle, arguing that the Trebs and Titov fields should fall into the category of "strategic fields" under Russian law that should, in theory, then be restricted to development by majority state-owned companies.

The analyst noted that Rosneft and Russia’s state-owned OAO Gazprom have previously cited this law to lobby successfully for the government simply to transfer the rights to strategic fields to them without the need for an auction or any payment for license rights by the two companies.

In connection with the bid by ONGC’s Nord Imperial, Russian Natural Resources Minister Yuri Trutnev doubted it could go through as the Trebs and Titov sites, as indicated by IHS Global Insight, are strategic fields.

"The deposits are classified as strategic, and so it is up to a government commission to decide whether (ONGC) can participate alone, but I doubt that will be the case. I would be surprised," Trutnev said.

"It's certain that the foreign investments commission will assess ONGC for the Trebs-Titov tender,” Trutnev said, adding that Samotlorneftegaz will probably be assessed too. They need to look at the capital structure.”

Russia’s Interfax news agency said Rosneft and ONGC could possibly form a joint venture if the Indian firm wins the Trebs-Titov tender, saying that the Russian firm might be involved in the project along similar lines to those on which it is developing Sakhalin-1.

A few years ago Rosneft, which owned 40% of Sakhalin-1, sold half to ONGC, which financed both its stake and its Russian partner's stake, the agency said.

Meanwhile, bidders for Trebs-Titov have until Oct. 25 to pay the deposit, equal to the starting price, which is 18.171 billion rubles, and until Oct. 28 to submit plans to develop the fields, proof of payment of the deposit, and their proposed one-off bonus.

The recoverable reserves of the Trebs field are estimated at 82.469 million tonnes of oil, while those of the Titov field are estimated at 57.59 million tonnes.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Novel upgrading technology cuts diluent use, capital costs

02/02/2015 A novel bitumen upgrading process that decreases the amount of diluent required for pipeline transportation and reduces overall operating costs has...

Fluid typing extends production in Chinese gas reservoir

02/02/2015 Comprehensive evaluation and classified recognition (CECR) of fluid typing and zonation (FTZ) is a prerequisite for developing multilayer sandstone...

Mud volcanoes show gas hydrates potential in India's Andaman Islands

02/02/2015 Minutes after the M9.0 Sumatra-Andaman earthquake in 2004, mud volcanoes erupted on Diglipur Island in North Andaman. The eruptions resulted in an ...

Epir-1 exploration well in Kenya encounters oil, gas shows

01/22/2015 Tullow Oil PLC encountered oil and wet gas shows over a 100-m interval of nonreservoir quality rocks—demonstrating a working petroleum system—by wa...

Nebraska Supreme Court vacates lower court's Keystone XL ruling

01/19/2015 Nebraska's Supreme Court vacated a lower court's decision that legislation transferring authority to determine the proposed Keystone XL crude oil p...

Gulfsands Petroleum completes Moroccan gas discovery

01/12/2015

Gulfsands Petroleum PLC completed its Dardara Southeast 1 well (DRC-1) Rharb Centre Permit in northern Morocco.

Take that, Canada!

01/12/2015 Mexican President Enrique Pena Nieto needs a warning about how the US treats friends nowadays. On the day of his chummy, Dec. 6, 2014, meeting with...

Condensate export status a problem with easy solution

01/12/2015

Some perplexing problems have simple solutions.

Petrobras confirms light oil potential of Sergipe basin’s Muriu area

01/09/2015 Petroleo Brasileiro SA (Petrobras) has confirmed the continuation of the light oil accumulation in turbidite sandstone in the Muriu area of the ult...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected