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Gennady Timchenko to control construction giant ARKS September 13, 2011

Posted by mytruthaboutoil in Oil (general), Oil giants, Oil trading.
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Gennady Timchenko’s energy trading company Gunvor recently acquired a stake in construction giant ARKS and bought an option to take control of the company. A new step forward for the Finnish businessman’s diversification strategy.

A month after gaining control of mining company Kolmar Coal (51%) for approximatively $400 million, Gennady Timchenko’s Gunvor, the third independent energy trading company in the world, goes further with ARKS.

The company acquired last week 21% of one of the leading Russian construction company, ARKS, in order to diversify from oil and gas business. The Moscow-based company is notably specializing in building roads and highways in the Moscow region.

According to Russian newspaper Kommersant, Gennady Timchenko bought 21% of the building company for $200 million. Moreover, the businessman received an option to take control within a few months.

Founded in 2003, the ARKS group was formerly known as UM #4, Russian oldest construction company (since 1926). The group has three main affiliates: Create Story (construction), UM #4 (demolition) and Nataland (engineering services).

Since 2010, Gunvor has launched a wide diversification strategy. According to analysts Gunvor’s recent moves are a bid to curb the company’s reliance on oil and gas, which currently represent most of Gunvor’s turnover.

Gunvor founder and co-owner Gennady Timchenko is a Finnish businessman with Russian origins, specializing for decades on Russian oil and infrastructures.

Repsol and Alliance form a Russian joint venture June 18, 2011

Posted by mytruthaboutoil in Geostrategy, Oil giants.
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How will the $800M joint venture work? Repsol will contribute cash to support growth of the joint venture and Alliance Oil will contribute producing oil assets in the Russian Federation.

Repsol and Alliance Oil Company have signed a Memorandum of Understanding to form a joint venture that will serve as a growth platform for both companies in the Russian Federation, the world’s largest oil and gas producer.

Alliance Oil will hold a 51% stake in the joint venture and contribute producing assets in the Volga-Urals Region while Repsol will own the remaining 49% and make an initial cash investment to finance future growth opportunities.

The agreement seeks to combine Alliance Oil’s knowledge and privileged access to Russian exploration and production business opportunities with Repsol’s know-how and technical capabilities to create a long-term exploration and production alliance.

In addition to the exploitation of the assets to be contributed by Alliance Oil, the agreement includes seeking opportunities for exploration and growth through producing assets in the Russian Federation.

‘This cooperation with Alliance Oil enables Repsol to increase its producing assets and obtain privileged access to assets in the country, home to some of the largest hydrocarbon resources in the world, reinforcing this growth vector of our group”, said Repsol Executive Chairman, Antonio Brufau.

‘We are pleased to develop our partnership with Repsol and together create an additional important strategic upstream growth platform in Russia. I am convinced that the joint venture will create significant value for our shareholders and make a meaningful contribution to our reserves and production,’ said Eric Forss, Chairman of Alliance Oil Company ltd.

Repsol already owns a 3.47% stake in Alliance Oil resulting from the merger between Alliance Oil and West Siberian Resources in 2008. Repsol also owns a 74.9% stake in Eurotek-Yugra, which holds exploration and production licenses in the Karabashsky-1 and -2 blocks in the prolific West-Siberia basin.

The transaction is subject to negotiation of final contractual terms, due diligence of the assets to be contributed by Alliance Oil and the procurement of the relevant regulatory and corporate approvals, which is expected to be completed during 2011.

War in Georgia: a war for oil ? (2) December 28, 2008

Posted by mytruthaboutoil in Geostrategy, Oil (general).
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PART 2

and I believe it is the key point of this war- that Georgia is actually one of the only route to export oil extracted from the Caspian sea (see map) to western countries, and the only one which is not directly controlled by Russia.

However, we have hardly heard in the mainstream medias

About 1,6 million barrels of oil transit every day across Georgia, notably through the BTC pipeline which goes from Azerbaijan to Turkey. The volumes transiting through Georgia should at least double in 2010 (between 3 and 6 million barrels a day).

Keeping this fact in mind, it is also notoriously known that the Georgian president Mikhail Saakachvili, who was elected in 2004, is definitely pro-West and anti-Russia.

 

Since his election, most of the Western oil majors have therefore decided to invest in Georgia in order to bypass Russia regarding the trading of Caspian oil.

Before the war, Georgia was considered as a key element of the “East-West energetic corridor

“, the purpose of which was to export the Caspian oil without Russian assistance.

 

The control of the Caspian oil transit sounds to me (and to many people in the oil sector) as a reliable perspective to understand why Russia launched such a massive operation and was ready to pay a heavy diplomatic price for it.

That would explain why the Russian army has systematically bombed oil storage and transit facilities, notably the BTC pipeline.

Russia can not afford to lose such a geopolitic asset as the Caspian oil. Putin was ready to launch a war for it.

But are we so sure Bush did not have the same type of thinking when he decided to free Iraq? We might talk about it in another post.