22nd April - 24th April 2014
|The CIS Oil&Gas Summit Post conference report 2013 is ready for your review. Click here to download a copy>>|
Thank you to everyone who made the 13th CIS Oil & Gas Summit a great success. Over three days senior industry representatives working within the CIS partook in insightful and informative discussions covering:
- Supply-demand dynamics influencing key E&P decisions in the CIS
- Government strategies
- Oil and gas financing
- Working together to drive profitability in the region
- Challenges and solutions for natural gas supply diversification strategies
- Cost-effectively exploring tight oil & gas potential in the CIS
TOTAL once again hosted their much anticipated champagne cocktail reception on Tuesday 22 May. Summit attendees got to network with their peers in the splendid setting of the Hôtel d'Évreux.
The 2013 Summit also received official support from State Duma Russian Federation, with Ivan Grachev, Chairman of Energy Committee leading a keynote session on key priorities for working with the CIS countries and the future of offshore resources.
The Summit culminated in a half day workshop focusing on LNG, offshore and tight oil opportunities in the CIS which was followed by a sightseeing tour of Paris.
The CIS Oil & Gas Summit post event report will be published soon. To register for your copy email us by clicking this link:
If you have any questions about the 2014 Summit or would like to share your experience of this year’s event please contact:
Head of the Programme Committee
T: +44 (0) 20 7384 7702
Get involved in the CIS Oil & Gas Summit 2014
We are excited to announce that we have already started planning for the 14th edition of the CIS Oil & Gas Summit which will take place in April 2014 in Baku.
If you would like to showcase your expertise and get involved in this premier energy event then please let us know.
For further information about speaking at CIS Oil & Gas Summit please contact:
Head of the Programme Committee
T: +44 (0) 20 7384 7702
Head of State Policy, Geology and Subsoil Use
Ministry of Natural Resources of Russian Federation
Chairman of the Energy Committee
State Duma of the Russian Federation
Vice-President, New Business Development and Strategy, Russia and CIS
Senior Vice President, Continental Europe and Central Asia
Total E&P Russie
ERNST & YOUNG
CMX Caspian and Gulf Consultants Limited
General Manager, Caspian Region
Russia Programme Manager, Directorate of Global Energy Policy
International Energy Agency
Vice President Commercial, Russia and CIS
Executive Vice President, Upstream
Senior Fellow, Global Security & Energy
East - West Institute
Ambassador of the European Union to Azerbijan
Head of Oil and Gas Department
Energy Research Institute of the Russian Academy of Sciences
Energy Security Specialist
Partner, Legal Services
PRICEWATERHOUSECOOPERS LEGAL CIS BV
Partner, Tax Services
Business Deveopment Director CIS
Advisor in Directorate General for Energy
Partner, Joint Head of Moscow
Norton Rose (Central Europe) LLP
Director, Russia and Kazakhstan
Leading legal counsel
Senior Research Fellow
Oxford Iinstitute For Energy Studies
Commercial and BD Project Director
Ministry of Energy Turkmenistan
Business Development Director
Total E&P Russie
VP, Southern Corridor
Chief Researcher (CIS)
JAPAN OIL, GAS AND METAL NATIONAL CORPORATION (JOGMEC)
External Affairs Director
Trans Adriatic Pipeline
General Manager (Investment division)
Deputy Commercial Director
Georgian O&G Corporation
Vice President Transportation and Marketing
Director, Corporate Development
The CIS Oil&Gas Summit 2013 will be held at theThe Westin Paris - Vendôme, Paris, France
The Westin Paris - Vendôme's ideal location in Paris' first arrondissement makes it easy for guests to combine business and pleasure. In the elegant heart of Paris, surrounded by all the enticements of the first arrondissement, we are moments from the Place Vendôme, Louvre Museum, Place de la Concorde, Tuileries Garden, and the boutiques of Rue du Faubourg Saint-Honoré.
The Energy Exchange has negotiated special prices for the CIS Oil&Gas Summit attendees.
OVER 45 SPEAKERS AND 280 PARTICIPANTS FROM 29 COUNTRIES
The CIS Oil & Gas summit is the only event that provides comprehensive analysis of the key issues affecting the entire CIS oil and gas community.
41% of our attendees are CEO’s, Chairmen, Presidents or Vice Presidents making it one of the most senior and prestigious events in the region
50% of our delegates represent either National or International O&G companies giving you first-hand information to formulate the most objective business strategy
Over three days CIS Oil & Gas Summit will maximise your learning experience through:
- Keynote speeches
- Panel discussions
- Case Studies
- Q&A sessions
Previous attendees include:
Arcelormittal, GDF Suez, Technoil Gas CIS, Power Fusion, Gazprombank, TOTAL, Vallourec & Mannesmann Oil & Gas, Petrofac Integrated Energy Services, Russia Economic & Commercial Delegation In France, SOCAR, CH2M HILL, Winstar Resources Ltd, Botas, Exxonmobil International, Ernst & Young, Trans Adriatic Pipeline, Petrotechnics, Siemens Russia & Central Asia, Petrokazakhstan, Shtokman Development, North Caspian Operating Company, Pricewaterhousecoopers, Standard & Poor's, North Caspian Operating Company and many more
TOTAL is one of the leading oil companies in the world. With operations in more than 100 countries, the Group's activities span all aspects of the energy industry from Upstream to Downstream as well as international trading in both crude and refined products.
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 167,000 (as of 30 June 2012) people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.
To discuss your sponsorship or exhibition requirements in further detail, please contact:
Rhis Edwards | Commercial Director
The Energy Exchange | World Refining Association
Three easy ways to confirm your place at the CIS Oil & Gas Summit 2013
|Call us on +44 (0) 20 7384 8000|
The standard price for the 3-Day Conference is £2.499
For further information or to register your place please contact:
T: +44 (0) 20 7384 8015
Free download - CIS Summit
As was outlined and analysed by Zhumageldy Yelyubayev, MCIArb, Doctor of Law, Chevron EBU Managing Legal Counsel, President of the Kazakhstan Petroleum Lawyers Association (KPLA) at the CIS Summit 2012 in Paris.
One of the most controversial regulatory issue regarding investment and subsoil use in the CIS region - is the idea of Granting to all foreign investors the regime of investment treatment not less favourable than that granted to national investors or investors from other countries
Since his presentation in 2012, further recommendations as well as concrete steps were scheduled by governments and leading national and international companies to move key projects forward. Some of them will be announced during a three-day CIS O&G Summit 2013 on 21-23 May in Paris, and some will be discussed during networking breaks and a VIP cocktail reception supported by Total.
Yana Zoloeva, Partner, PwC Legal Practice Leader has outlined the most crucial trends in Russian legislation that already have or will have a profound impact on the future of oil and gas development and the impact on international companies who want to get involved.
Since this insightful analysis in May 2012, one piece of legislation has gained rapid momentum but all of them remain highly controversial subjects to detailed scrutiny.
Please fill in the form below to download this presentation to see what guides Russian oil and gas industry today
The top risk for oil and gas companies in the region is access to reserves: political constraints and competition for proven reserves, while the top opportunity is frontier acreage which can be successfully achieved via contractual partnerships between IOCs and NOCs.
Turgay Teymurov, Partner and ECU leader for Azerbaijan for Ersnt&Young has not only assessed the impact of evolving contractual relationships between IOCs and NOCs, the raised challenges and mitigation techniques but also analysed a new model with its increased complexity in specific countries such as Kazakhstan and Azerbaijan.
To see how this compares to recent agreements between oil and gas companies, please fill in the form below and download this presentation
CIS Oil and Gas Summit Interviews
Q & A with an Expert
Read our exclusive interviews with industry leaders participating in this year’s CIS Oil & Gas Summit
- John Baldwin, BP Southern Corridor, BP
- Thierry Darrigrand, VP Transportation and Marketing, TOTAL
- Philip Vorobyov, Commercial Executive, JKX Oil & Gas
- Louis Skyner, Leading Legal Counsel, Statoil Russia
John is Vice President, Southern Corridor. He has worked for BP for over 30 years in various positions, most recently as group political adviser to the BP group of companies, based in London. Before that he was political adviser for Russia. His career also included roles as a commercial manager for upstream projects in London and the Far East. John is a Board Member of the Russian British Chamber of Commerce.
The Energy Exchange: What is your opinion about Europe’s energy independence in the nearest future? How feasible is it?
John Baldwin: It is very hard to accurately predict supply and demand in the future. As indigenous supply in Europe is declining this means the import requirements – both by pipeline and by LNG – will have to grow accordingly to keep pace. We believe there is demand for Shah Deniz gas in Europe.
The Energy Exchange: The best-known pipeline project in the Southern Gas Corridor is Nabucco. There is also Russia's South Stream, that will secure direct access to the EU energy market for Russia, and it has a bigger capacity than Nabucco, similar completion deadlines and would largely reach the same clients in Central Europe. Do you consider South Stream as a big threat for Nabucco in the long term?
John Baldwin: The aim of the Shah Deniz project is to bring some 10 BCMA of gas into Europe initially. We believe there is room for this gas. This volume though significant is modest in comparison with the European market. When we surveyed potential customers a couple of months ago they indicated that they could buy some 30 BCMA of Shah Deniz gas. The Shah Deniz project is planning to bring some 10 BCMA into Europe from 2018.
The Energy Exchange: What is your opinion on shale gas development? What do you think, can European countries replicate US shale gas boom? How the recent massive increase in US natural gas supplies could affect Russia’s dominance in the European energy market?
John Baldwin: We do not think that developments, at least for a couple of decades, in Europe will be anything like what we have seen in the US. There are many obstacles, from lack of infrastructure, to environmental concerns, to political concerns.
The Energy Exchange: What important trends in global energy market will drive the operators in the next 5-10 years in your opinion?
John Baldwin: With continued population growth we hope there will be continued per capita income growth. That would drive an increase in energy demand. But the rate of energy demand will be slower than economic growth and population growth. Technological change and innovation will be the key factors in the speed with which energy supply keeps pace with energy demand.
Graduated from Ecole Centrale de Paris,Thierry Darrigrand joined Total in 1986 and held different positions in the marketing of natural gas (pipeline gas in Pau and LNG in Paris). Then, he joined the Exploration Production in 1998 on different positions on Angola Block 17 in France and in Angola. He was appointed Deputy Commercial Manager in 2006 in the KCTS project group in France, in Kazakhstan and in the UK. Eventually, he joined Continental Europe and Central Asia Division end of 2010 as Vice President Transportation and Marketing.
The Energy Exchange: Good afternoon Mr. Darrigrand. Thank you for joining us. Our first question for you today is what major challenges do you see for oil transportation in the Caspian region?
Thierry Darrigrand: Speaking of technical issues, there are 2 major obstacles: First is the expansion of CPC* and its timing - the expansion project has to be completed as soon as possible. And the second one is the reversal of Kenkiyak Atyrau and the expansion of the pipeline to China. But the question is more than that. It is also about economics of China route: it should be competitive to other routes, for example Atyrau Samara or CPC.
The Energy Exchange: Are there any proposed pipelines that will not be build and why?
Thierry Darrigrand: There is a project of a Southern route - KCTS, but to fill this pipeline more oil is needed. With the expansion of CPC and the reversal of the pipeline to China, there will be a lot of unused capacity. In this case - what's the need for a new pipeline in short term? The need to build new pipeline depends on the new productions in the region, like the expansion of Kashagan and/or Tengiz. Then in order to assess the need for building a new route, like KCTS it will have to be competitive to the expansion of existing pipelines - to North (to Russia) or to East (to China).
The Energy Exchange: Caspian Pipeline Consortium planned to build 10 new pumping stations in 2012 - 2015 - what is the current status - what has been done so far?
Thierry Darrigrand: What you can read in the press, is that the expansion and modernisation project has 3 Phases, and the first Phase involves refurbishment of the existing CPC facilities, including Tengiz and Atyrau pump stations and the pipeline. You can read that they are one year late with the Phase 1, which of course could delay further Phases 2 and 3.
The Energy Exchange: Oil Production at Kashagan was postponed several times. Why does it happen?
Thierry Darrigrand: Well, because it is difficult to build. The development of Kashagan, in the harsh offshore environment of the northern part of the Caspian Sea, represents a unique combination of technical and supply chain complexity. The combined safety, engineering, logistical and environmental challenges make it one of the largest and most complex industrial projects currently being developed anywhere in the world.
The Energy Exchange: Mr. Darrigrand, you've been working with many countries. People say it is not easy even in Europe and it is much more challenging in the CIS because of the culture and language difference, different approach to business, bureaucracy etc. How do you manage working with your CIS partners, colleagues?
Thierry Darrigrand: As for me, I do not see a big problem here. If you work in the oil and gas industry, you are involved in the international business. It's a World Market. I worked in Angola, in Kazakhstan and in the UK - everywhere people do the same thing - business. And the language barrier - it is not only in the CIS, if you work in Africa in Indonesia or in China you have to either speak their language or you got to find a translator. Moreover, we are trained to work with different people from different cultures, we are an international company and involved in multi-cultural environment. Plus, this is the nature of oil business. You can be French or Russian or Angolan or Chinese but when you need to work, you are just a professional in your field.
The Energy Exchange: Thank you very much Mr. Darrigrand! We look forward to seeing you at the CIS Oil & Gas Summit in May.
* CPC - stands for Caspian Pipeline Consortium
** KCTS - stands for Kazakhstan Caspian Transportation System
In the run-up to the 13th International CIS Oil&Gas Summit (21-23 May 2013, Paris), we spoke with Philip Vorobyov, Commercial Executive, JKX O&G. Philip told us about challenges accompanying operations in Russia and Ukraine and shared his opinion on "shale gas revolution" and the importance of the Southern Gas Corridor project for Europe.
The Energy Exchange: Good afternoon Philip. Thank you for finding the time to talk with us. JKX has been working in Russia and Ukraine for a long time. What challenges do you face when operating on these markets, and how difficult is it to implement international practices and European standards in these countries?
Philip Vorobyov: One key challenge for companies like JKX that operate in the FSU space is to simultaneously meet all the regulatory requirements of the host countries (of which there are many) and to comply with all the rules a Western-listed company must follow.
Both Russia and Ukraine have their own systems of regulatory oversight developed over many decades before during and after the Soviet Union. Things like reserves and resources booking rules, project approval, environmental standards, financial audit and infrastructure access rules can differ significantly from what companies are used to in the West.
It seems to me that we are coping with this challenge quite effectively. We have been operating in Ukraine since the beginning of 90s and in Russia for over five years. We have built an integrated team, which includes top-level Ukrainian, Russian and Western specialists who are capable of working in these parallel worlds.
There are a number of commercial challenges for gas producers in the region. The uncertainty around the future regulation of gas pricing both in Russia and Ukraine is one obvious challenge. In Russia the question is how much higher will current (relatively low) gas prices will grow. In Ukraine the critical issue is the sustainability of the currently very favourable gas price environment. Meanwhile, there is currently little certainty about future gas taxation in both countries.
The Energy Exchange: Do gas conflicts between Russia and Ukraine affect your company performance in these countries in any way?
Philip Vorobyov: Generally, if there is any impact, it is indirect. For example, one consequence of the tensions are aforementioned high gas prices in Ukraine. In this sense, it is an advantageous situation for our company, bearing in mind that a sizeable part of our production coms from Ukraine.
The Energy Exchange: Industry experts are actively discussing the construction of the Southern Gas Corridor. In your opinion, does Europe hold out high hopes that if it realizes this project it will secure its energy independence from Russia?
Philip Vorobyov: This whole idea has existed for a long time. I see Russia and Europe as long-term partners with neither side having much of an alternative to the other. The one vital question that has hung over the Southern Corridor has been where the additional gas will come from. There is gas in Russia, quite a lot of it. And no material alternatives have been established. Other than the next phase of Shah Deniz, there are few projects that could be considered concrete. To be sure, there is a huge resource base in countries like Turkmenistan, Iran and Iraq, but concrete commercial terms for the delivery of this gas to Europe remain vague at best. For Russia, despite its current efforts at developing its Eastern gas projects, Europe will remain the most attractive market for its gas for many years to come. There is therefore a fundamental interdependence which both sides need to recognize, while working on diversifying energy supply routes.
The Energy Exchange: Philip, do you believe in "shale gas revolution" as far as alternative energy sources are concerned? How do you think, can the European countries repeat the shale gas boom which we are observing in America? Some Russian experts believe this to be a myth.
Philip Vorobyov: I think it is difficult to argue that there has been no fundamental technical breakthrough in our ability to develop tight gas resources (including shale gas). Shale gas production is already affecting the global gas markets and will continue to do so in the future. The arguments are about how extensive this effect will be beyond North America. To recreate what is happening in North America around the world and in Europe first and foremost will be difficult, as many have already pointed out. But to say that shale (and other tight) gas development in Europe will never be commercial would not be prudent at this stage. On the other hand to hope for long-term gas prices in Europe to reach those currently seen in North America for any lengthy period would also be wishful thinking.
The Energy Exchange: Does JKX have plans to develop this focus area?
Philip Vorobyov: There is shale gas and tight gas within our license boundaries. We are currently seriously looking at options for developing considerable reserves and resources that we have using best available technology. For example, later this month, with the help of Schlumberger, we are planning a multi-stage frac of well 103 at our Rudenkovskoye license – the most extensive frac attempted in Ukraine, or indeed in on land Europe to date.
The Energy Exchange: Thank you very much Philip! We look forward to seeing you at the CIS Oil & Gas Summit in May
Louis Skyner holds the position of leading legal counsel for Statoil in Russia. In this role he has acted as lead counsel: in the negotiation of a joint operating agreement with the Iraqi authorities and Lukoil Overseas for the development of the West Qurna oil field; in negotiations with Gazprom and Total for the development of the Shtokman gas field; and, over the past year in negotiations with Rosneft on the exploration of both offshore and onshore fields in Russia.
Before joining Statoil, Louis worked in private practice advising a number of Norwegian companies in the shipping and petroleum service sector on projects in Russia & the CIS. He will return to private practice in the summer, as head of oil & gas at Clifford Chance's Moscow office.
In addition to his work as a solicitor Louis has acted as a consultant on a variety of European Commission and World Bank projects advising national governments on the establishment of legislative frameworks for infrastructure financing and development in the energy sector, a subject he lectures on as adjunct professor at the New Economic School in Moscow.
The Energy Exchange: Good morning, Louis. Thank you for joining the Energy Exchange today. Our first question is: a dispute over more independent oil and gas producers in Russia has been the hottest topic of many public discussions. As Gazprom had focused on export market opportunities, the independents responded to the increase in demand in the domestic market. What do you think does the government have to do to take control over this situation in the Russian domestic market? What is your opinion on liberalisation of the Russian market?
Louis Skyner: As far as I can see this is a natural development. Gazprom has had to cut its investment plans since the financial crisis. So it is logical that Gazprom has focused more on export, as it is the source of greater revenue. When you say "export" you can also include the construction of infrastructure to allow it to export.
The independents have therefore been able to maintain a greater market share, because there is more room for them to compete on the domestic market. The independents successfully lobbied the government to improve the implementation of legislation that gives them third-party access to the transportation infrastructure. I think that the interesting question is when will they successfully demand an end to Gazprom’s export monopoly? What we are seeing at the moment is increased pressure on the government from Rosneft and Novatek for them to be granted the right to export LNG. This is essentially a pre – requisite for such companies to invest big money in large new offshore projects such as Yamal.
The Energy Exchange: Many European leaders blame Russia of inflated gas prices and rely on their own exploitation of shale deposits. We can see the positive experience in shale gas development in the US. How do you think the recent massive increase in US natural gas supplies could affect Russia’s dominance in the European energy market? And how the boom in the shale gas industry in the US will affect the Shtokman project?
Louis Skyner: Well, the answer with regard to Shtokman is simple: it killed the Shtokman project. The initial plan for Shtokman was to produce LNG for the US market. It is such an expensive project in terms of the investment involved. The current gas prices, in both the US and Europe, simply would not provide the project with the revenue to cover such cost. So Shtokman is a clear example of how the US shale gas revolution has impacted upon Russia. With excess LNG being sold in Europe Gazprom lost some of its market share.
In the future in Europe the big question will be whether the price of gas at the National Balancing Point consistently drops below the price that gas is sold under long term contracts. And in the light of increased competition will Gazprom increasingly allow their customers to re-negotiate prices under such contracts. Looking at the global picture the big question is going to be whether or not the growth of shale gas and the number of LNG projects, such as those being developed in East Africa and Australia, is going to significantly impact on the price gas is sold in the Far East. Will such projects be able to sell cheaper LNG to the Far East than Russia producers could? I think that Russia realises the importance of gaining a foothold in the Far Eastern market. We are seeing a lot of activity from Gazprom to conclude a pipeline deal with China, and a lot of activity with regard to developing further LNG production on Sakhalin.
The game changer, in addition to the potential development of shale gas in China, will be the decision the US government takes with regards to the export of gas. At the moment there is a restriction on US exporting gas, as cheap US gas is seen as essential to the US's industrial recovery. But if you imagine a scenario where the US government approves the export of gas, then suddenly Russia could be faced with the prospect of US gas being exported both to Europe and the Far East. So the impact of the US shale gas revolution is becoming clear, but its extent is not yet fully understood. Gazprom lost some its market share in the South of Europe, and is now battling to maintain its market share elsewhere in Europe. With regards to the Far East it has to move quickly in order to gain a foothold. If it doesn't...well, it's an increasingly competitive gas market.
The Energy Exchange: What important trends in global energy market will drive the operators in the next 5-10 years in your opinion?
Louis Skyner: Obviously IOCs have ambitions to become involved in new oil and LNG projects, from projects in the Russian Arctic to projects in East Africa. The key question is the terms on which they can access projects. And that is going to make a difference: IOCs will want to work where they have a better chance of making a commercial return. One of the key developments in Russia has been the move away from the PSA system, under which the IOC could secure that its costs would be recovered and then its right to share in the profit. Under the new risk service agreements we are seeing be concluded with Rosneft, the IOC is ostensibly being paid to develop and operate a field. Such contractual structures cause challenges for the booking of reserves and expose IOCs to greater risk in terms of obtaining a market price for the commodities produced. In terms of LNG IOCs will clearly prefer to invest in countries where (1) they secure that reserves are booked, costs are recovered, and sufficient influence can be exercised, and (2) they are able to sell and market the gas themselves.
The Energy Exchange: Speaking about gas. Europe pins high hopes on opening the Southern Gas Corridor. Do you think this will help Europe to get really energy-independent from Russia for the next 20-30 years? Or is this not going to happen?
Louis Skyner: Well, I think one of the reasons why Gazprom has taken the decision to build South Stream is to reduce the likelihood of Nabucco being built: to promote the continuation of such energy dependency. Putting the issue of the impact of South Stream aside there are many issues that remain to be resolved in the Caspian region: only then would there be enough gas available to make Nabucco commercially viable. Include Iranian gas then we are looking at a totally different picture. But that doesn’t look as if it is going to happen in the near future. As we have already discussed there is also more and more gas and LNG coming into Europe, from North Africa and Qatar. That in itself is a competitor to Russia. The impact that is having on the way gas is bought and sold, and the price, is the more likely way Europe will reduce its dependency on Russian gas.
CIS Oil&Gas Summit Post conference report 2013
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