Rosatom may acquire Czech interest in Slovak power plant project

According to Czech media (15 November 2012), Russian state nuclear power corporation Rosatom may acquire a 49 per cent interest in the JV Nuclear Energy Company of Slovakia from Czech energy company ČEZ. The other partner in the JV is Slovakia’s JAVYS.

The JV is building a new power unit of the Bohunice Nuclear Power Plant project located in Slovakia.  The construction contract is worth an estimated GBP 2.4 billion. Rosatom also supplies reactors for two units being built at Slovakia’s Mochovce Nuclear Power Plant.

Gazprom to access European energy market through NIS

According to the Russian business daily Kommersant (2 November 2012), Gazprom has broken into the European electricity market through Serbia’s NIS, which is controlled by the gas and energy concern. NIS is considering l participation in two projects relating to the construction of gas heat power plants in Serbia, firstly the modernisation of a plant in Novi Sad, which is currently owned by the state. NIS is interested in at least a 50 per cent interest. It may acquire the interest with a partner – Slovakia’s GGE.

In addition, NIS is considering the construction of a heat power plant in the city of Pančevo once again potentially in partnership with GGE.

These projects, if they proceed, with finally provide Gazprom with access to the European electricity market. It had sought to participate in a global electricity partnership with Germany’s RWE back in 2011, but these plans have so far not come to fruition.

 

Rosneft disclose cost of US interest

In its IFRS financial statements for the first nine months of 2012 Rosneft discloses the amount that it paid for a 30 per cent interest in the Harmattan acreage in the Cardium formation of the Western Canada Basin in Alberta, Canada. It acquired the interest from ExxonMobil in April 2012 as part of a number of agreements to implement a long-term Strategic Cooperation Agreement concluded in August 2011. Rosneft opted for a partnership with ExxonMobil after abortive attempts to link up with BP, scuppered by litigation commenced by BP’s partner in TNK-BP.

Rosneft and ExxonMobil agreed at the time to jointly develop oil and natural gas projects in Russia and share technology and expertise, in particular potentially promising offshore projects in the Russian Arctic and Black Sea regions.

It transpires from the financial statements that Rosneft paid RUB 2 billion for the Harmattan interest, considered a fair price, as it will provide the state-controlled oil and gas corporation with access to ExxonMobil’s technology.

 

 

Uralvagonzavod steels itself for Serbian expansion

According to Kommersant, state-owned machine-building company UralVagonZavod is considering the acquisition of another foreign asset, holding negotiations with the Serbian government over the purchase of steel manufacturer Zelezara Smederevo.

Analysts believe that the purchase could become an albatross around the company’s neck, as the steel manufacturer is loss-making and has outdated assets. Zelezara Smederevo was sold back to Serbia by US Steel for a symbolic 1 dollar in January 2012, as it had incurred losses of USD 100 million in 2011.

For this reason analysts assume that the negotiations with the Serbian government are a political move.

 

Blavatnik buys into French Internet service

In October 2012 Leonard Blavatnik’s Access Industries paid USD 130 million for a shareholding in French music Internet service Deezer. The deal should help Warner Music, which is owned by Access Industries, to access the on-line music market. Deezer is a competitor of Spotify.

In 2011 global digital music sales were worth over USD 5 billion.

Rosneft considering Mozambique-Zimbabwe link-up

On 12 October 2012 Kommersant reported that Rosneft has been holding negotiations on the construction of an oil product pipeline through Mozambique to Zimbabwe, including the construction of a major storage facility in Harare.

Roman Trotsenko, former head of the United Shipbuilding Corporation and currently adviser to the Rosneft CEO, says all the legal documents, JV agreement and all the permits for the passage of the pipeline will be adopted by the end of 2012.

According to the article, the project could set Rosneft back USD 700 million and is part of plans to transform the state-owned oil company into a major global player. However, analysts cite high risks related to the project.

Rosatom considers UK nuclear build plans

According to the Daily Telegraph, Rosatom has expressed an interested in participating in new nuclear build programmes in the UK – provided that they actually go ahead and opposition to Russian involvement in nuclear builds due to security concerns is overcome.

The Russian state-owned nuclear operator could acquire an interest in the Horizon projects or participate in plans by France’s EDF to build a new power plant in Somerset.

LUKOIL expanding in Qurna interest

The Iraqi government has approved plans by LUKOIL to acquire Statoil’s interest in the West Qurna-2 oil field Iraq. As a result of the deal, the Russian oil producer will be able to consolidate a 75 per cent interest.

It is possible that LUKOIL may sell on this interest to another foreign partner. It remains unclear why Statoil decided to pull out

Rostelecom connecting with Armenia

According to Kommersant (13 January 2012), Rostelecom plans to make its first foreign buy with the acquisition of 75 per cent minus one share in the Armenian operator GNC-Alfa for USD 22.5 million. Subsequently Rostelecom may buy the Internet provider Ucom. As a result the Russian operator will account for over 13 per cent of the broadband access market in Armenia.

Severstal build in Trinidad and Tobago

According to a report in Kommersant on 12 January 2012, citing Severstal North America, Alexei Mordashov’s steel producer Severstal may build a Direct Reduced Iron facility in Trinidad and Tobago, which would supply the product for its Electric Arc Furnace activities in Columbus, Missipi. Further information is available in the article and from Severstal’s web …