Subscribe free to our newsletters via your




OIL AND GAS
Rosneft makes Egypt LNG deal; Fitch OMV looks good
by Daniel J. Graeber
Moscow (UPI) Aug 27, 2015


Fitch: OMV looks good in bad market
London (UPI) Aug 28, 2015 - Despite the weak crude oil market's draw on revenue, Austrian energy company OMV is performing well but production may suffer, a ratings agency said.

OMV said in its latest financial report spending through the first six months of the year was down 23 percent year-on-year. Chief Executive Officer Rainer Seele said the operating environment for company in the weakened crude oil market "remains challenging."

Crude oil prices are significantly lower than last year because of slower economic growth from key economies like China, a rise in oil production from the United States and an expected rise in oil production from Iran.

In a report issued from London, Fitch said the company was stable, though it would face pressure on the production side of operations.

"In this oil price environment we do not expect OMV to increase its hydrocarbon production as it had previously planned," it said.

OMV gave up on a goal of producing around 400,000 barrels of oil equivalent per day by 2016 because of the weakened economy. Fitch it "conservatively forecast" total oil and gas production by 2018 would be around 315,000 boe per day because of declines in legacy assets in the North Sea and conflict in Libyan and Yemen.

OMV said its daily net production was up 1 percent year-on-year, though operations in troubled Yemen and Libya remain closed because of violence plaguing both countries at least since the so-called Arab Spring movement gained momentum in 2011.

Operating costs dropped 19 percent year-on-year, which Fitch said was a reflection of cost-cutting measures by OMV.

"We view this achievement as positive given that OMV operates in relatively high-cost areas such as the North Sea and Central and Eastern Europe," it said.

OMV said it could see future growth opportunities should investment potential emerge in a post-sanctions Iran.

Russian energy company Rosneft said Thursday it was marking its frontier entry into the global liquefied natural gas market through a deal in Egypt.

Rosneft signed an LNG supply and purchase agreement with the Egyptian Natural Gas Holding Co. Documents were signed between Rosneft board members and their Egyptian counterparts during a visit to Moscow by Egyptian President Abdel Fattal el-Sisi.

"Cooperation with EGAS marks Rosneft's entry into the world LNG trading market," the company said in a statement. "Also, implementation of the provisions of the signed documents will, in the long term, open access for Rosneft to the Egyptian gas market which has a significant growth potential."

Egypt is a global leader in terms of natural gas consumption and relies currently on imports to meet domestic demand.

Alexei Miller, the chairman of Gazprom, discussed the potential for bilateral cooperation in the LNG sector with Egyptian Trade Minister Mounir Fakhry Abdel Nour during a June investment conference in St. Petersburg.

Egypt, since its 2011 revolution, has suffered energy shortages. Former Egyptian President Mohamed Morsi in 2013 said he was interested in exploring a natural gas relationship with Russia. At the time, Russian Energy Minister Alexander Novak said Gazprom was considering a swap plan so Egypt could meet contractual obligations.

Egypt would keep some natural gas designated for European markets and Gazprom would make up the difference.

The Kremlin said bilateral trade has increased by 86 percent since last year. Russian President Vladimir Putin said both sides were eager to continue the strong economic momentum.

"We are making successful advances in our energy sector projects," he said in a statement. "Rosneft, Gazprom and other Russian companies, including LUKOIL, are working in Egypt."


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


.


Related Links
All About Oil and Gas News at OilGasDaily.com






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





OIL AND GAS
Chinese rate cut lifts crude oil prices
New York (UPI) Aug 25, 2015
A Chinese decision to cut a key interest rate, and signs of marginal growth, gave oil prices a lift in Tuesday trading, a day after steep global declines. Brent crude oil prices moved up 3.3 percent in early trading Tuesday to $44.08 per barrel. West Texas Intermediate, the U.S. index for crude oil prices, moved in parallel to $39.55. Both indices dropped more than 4 percent at the open ... read more


OIL AND GAS
Austria draws on army in migrant crisis

Satellites focus on rescue and damage control work

New fires at China explosion site: report

Remembering New Orleans chaos, 10 years after Katrina

OIL AND GAS
Nicaragua to Host Russian GPS-Equivalent Ground Stations

Alibaba joins China arms maker to offer location services

Beidou satellites begin autonomous operation in space

Russia may offer Glonass-based navigation system for light aircraft

OIL AND GAS
Why we're smarter than chickens

The unique ecology of human predators

Most complete human brain model to date is a 'brain changer'

Oldest-ever humanlike hand bone found in Tanzania

OIL AND GAS
Sumatran rhino no longer found in Malaysia

Newborn pandas 'doing well' after tense night at US zoo

Worsening wind forecasts signal stormy times ahead for seabirds

Humans as predators: An unsustainable appetite for adults and carnivores

OIL AND GAS
'Major step' toward universal flu vaccine: studies

WHO chief calls for urgent transformation of global epidemic response

How long have primates been infected with viruses related to HIV

Agricultural intervention improves HIV outcomes

OIL AND GAS
China pursues more graft cases as crackdown rages on

China fashion exhibition is New York smash hit

China media urges US 'sincerity' over escaped officials

US warns China on agents pressuring fugitives to go home: report

OIL AND GAS
Kenya's 'ivory kingpin' bail suspended

Rio airport agents bribed in Chinese immigrant scandal

All bets are off inside Laos' jungle sin city

Football: FIFA sets election date as Blatter finally rules himself out

OIL AND GAS
China-spurred market turbulence to hit global growth: analysts

China to try 30 in business paper corruption case

China pumps $17 bn into banks for economic boost

China's yuan cut a bad omen for France's luxury sector




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement All images and articles appearing on Space Media Network have been edited or digitally altered in some way. Any requests to remove copyright material will be acted upon in a timely and appropriate manner. Any attempt to extort money from Space Media Network will be ignored and reported to Australian Law Enforcement Agencies as a potential case of financial fraud involving the use of a telephonic carriage device or postal service.