Oil major Shell is said to be considering whether to pull the plug on its last exploration well in Ukraine. The move is being considered as the project has been on hold for almost a year, due to the conflict between pro-Russian separatists and Ukranian forces.
The Russian Energy Minister Alexander Novak said Ukraine has requested one billion cubic metres of gas imports from Russia this month. It would treble the amount received in March and comes after Naftogaz and Russia’s Gazprom signed an interim deal for cheaper supplies of gas from Russia. The deal, which is expected to last three month, could help provide some time as both country’s debate energy costs.
JKX Oil and Gas has started arbitration proceedings against Ukraine under the Energy Charter Treaty for $180million in rental fees. The company, and its wholly owned Ukrainian and Dutch subsidiaries, are seeking compensation for the losses they have suffered from the country’s “treaty violations”. JKX Oil and Gas claims this includes Ukraine’s “failure” to treat JKX’s investments in a sufficient manner and “failing to comply” with commitments made by the country.
Russian stocks gained for a fifth day and the ruble strengthened after oil’s biggest weekly advance in four years and as talks on a ceasefire in Ukraine continued. The Micex Index of stocks rose 2% to reach the highest level since April 2011 with food retailer Magnit leading the advance. The ruble jumped 2% against the dollar. Government bonds climbed after central bank governor Elvira Nabiullina said policy makers are unlikely to reverse last month’s surprise interest rate cut. Russian assets have been pummeled by falling oil prices and intensifying fighting in Ukraine. Today’s rebound follows a rally in the price of Brent and the prospect for a lasting agreement to end the fighting.
JKX Oil and Gas has reported successful test results from its Elizavetovskoye field in Ukraine. Well E-303 was drilled to a total depth of 4,406metres and initially completed in the G7-12 sandstone reservoirs only. Following additional perforations in the shallower A2 carbonate reservoir and acid treatment, co-mingled production with the G7-12 sandstone reservoirs was 5.21 MMcfd of gas and 18 bpd of condensate through a 48/64-inch choke with a flowing wellhead pressure of 505 psi.
Regal Petroleum fears the current situation in Ukraine will have a negative affect on business. Ongoing geopolitical events have resulted in significant volatility in the Ukrainian Hryvnia exchange rates, uncertainty in the gas sales price and unexpected changes to the subsoil tax regime in Ukraine.
JKX Oil and Gas has suspended its planned 2015 capital investment programme in Ukraine following sales restrictions imposed on private gas producers. The company said it would no longer carry out work until “economic parameter for investment improves”.
Heard the one about Vladimir Putin, the oil price and the ruble’s value against the dollar? They will all hit 63 next year. That’s the joke doing the rounds of the Kremlin as the Russian government digs in to weather international sanctions over the conflict in Ukraine. According to at least five people close to Putin, pressure from the US and Europe is galvanizing Russians to withstand a siege on their economy. The black humor is part of an image of defiance not seen since the Cold War. As the economy enters its first recession in more than five years, the ruble depreciates to records and money exits the country, Putin’s supporters are closing ranks and say he’s sure to run for another six-year term in 2018.
Hawkley Oil and Gas has been investigating the rapid decline in production from a well in its Sorochynska licence in Ukraine. The company said Well 201 had already been experiencing a measured decline in production in line with expected performance.
Russian President Vladimir Putin has said he believes peace in Ukraine is possible but that neither side is fully upholding a peace deal struck in September. In an interview with German television, Mr Putin said he is convinced it is possible to end the deadlock in east Ukraine, where pro-Russian rebels have been battling Kiev’s troops in a conflict that has claimed at least 3,500 lives since March. But he also said that neither the rebels nor Ukrainian troops had fully withdrawn from key locations in the region to create a buffer zone, a key part of a truce deal agreed to in September.
In search of a way out of the energy crisis, Ukrainian experts claim to have found the solution - hydropower. The auxiliary resource has been successfully compensating the increasing energy demand triggered by the lack of power capacity and fuel in the past months. High liquidity and sustainability were identified as some of the major advantages of hydroelectric energy. “Prior to the anti-terrorist operation (ATO) in the east of the country and before the problems with energy supply, hydroelectric power stations produced electricity primarily during peak demand,” said the director general of Ukraine’s largest hydropower company, Ukrhydroenergo, Ihor Syrota.
JKX Oil and Gas has seen potential gas signs at the Elizavetovskoye field in Ukraine. The company said the testing of well E-303 had indicated a gross pay of 167 metres, spread over eight reservoir horizons.
Gas talks between Russia, Ukraine and the European Union will be held in Brussels later this month. The Russian Ministry of Energy made the announcement after a prolonged period of US and European sanctions were imposed on the country.