Rosneft leads Russian oil output to new high

Updated 02 January 2013
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Rosneft leads Russian oil output to new high

MOSCOW: More crude from state-owned top producer Rosneft kept Russian oil output the highest in the world last year, Energy Ministry data showed yesterday.
Crude output edged up almost 1 percent to a new post-Soviet high of 10.37 million barrels per day (bpd), but the increase could halt this year due to depleted oil fields in West Siberia.
Russia, whose proceeds from oil gas constitute around half of budget revenues, aims to keep its crude production at no less than 10 million bpd until 2020. The Kremlin has increased its share in the oil industry to over 50 percent after top oil producer Rosneft clinched an agreement to acquire Anglo-Russian TNK-BP for around $ 55 billion in a cash-and-stock deal.
After the acquisition, expected to be completed in the first half of this year, Rosneft will become the world's largest listed oil producer with hydrocarbon output of some 4.6 million barrels of oil equivalent per day.
In tons, Russia's crude production was 518.018 million last year, the ministry said, up from 511.432 million tonnes in 2011, which was one day shorter than 2012.
In December, Russia's oil production edged down to 10.48 million bpd from 10.50 million in November, a post-Soviet high.
Rosneft reported one of the largest rises in crude output among the Russian oil majors last year, with an increase of 2.3 percent to 117.473 million tonnes (2.4 million bpd) on a daily basis thanks to increased production at its East Siberia's Vankor field to 367,000 bpd.
LUKOIL, Russia's second-largest oil producer, saw a 1 percent decline in domestic output, to 84.620 million tons. LUKOIL has tried to increase its exposure to overseas oil deposits as it has been unable to offset a production decline at its mature West Siberian oil fields. It owns 75 percent of Iraq's huge West Qurna-2 deposit.
Saudi Arabia has restrained its output to steady oil prices, which reached a record high last year.
Brent crude averaged over $111 a barrel in 2012, the highest on record. The international benchmark gained 3.5 percent for the year, after rising 13.3 percent in 2011.

The windfall has helped oil production in Russia, where the extent of the crude output rise surprised many analysts. Moscow hopes the momentum will continue with so-called tight oil, hidden in layers of rock.
However Russia has yet to follow the United States in deploying advanced horizontal drilling and hydraulic fracturing technologies, which is known as fracking, on a commercial scale.
Last month, Rosneft has agreed with ExxonMobil to tap the shale oil in West Siberia.
The International Energy Agency (IEA) expects non-OPEC supplies to grow by 900,000 bpd to 54.17 million bpd in 2013, taking total consumption up to an average of 90.52 million bpd, while production in Russia will decline.
"We expect Russia's crude production to be lower by around 100,000 barrels per day in 2013 mainly because brownfield production declines should outpace greenfield supply growth," IEA's supply analyst Michael Cohen told Reuters.
Brownfield, or established, oil production in Russia accounts for over 80 percent of total output.
Vienna-based JBC energy consultancy expects Russian oil production to remain flat this year.
"We see Russian total oil output virtually unchanged this year as more widespread EOR (enhanced oil recovery) application and an increase in output in recently developed fields compensate for the declines in the mature fields," it said.
The far-flung deposits of East Siberia are viewed as vital in offsetting declining production in West Siberia. Last month, Russia completed an expansion of its Asian oil pipeline to the Pacific port of Kozmino, filled by crude from East Siberia.
Russia has been steadily increasing its crude exports to Asia at the expense of deliveries to Europe. It shipped 16.3 million tons to Kozmino this year, 1.1 million up compared to 2011.
Next year, exports via Kozmino will rise further, to around 21-22 million tons.
The ministry data also showed that Russia's total oil exports via oil pipeline monopoly Transneft and other routes edged down 0.3 percent to 234.3 million tons last year.
The oil resources at Russia's offshore fields — estimated at 100 billion tonnes of oil equivalent — are also seen as the next source of domestic oil production. Most are in the Arctic where only state-owned companies, such as Rosneft, have access.
Daily gas production jumped 10.4 percent, month-on-month, to 2.12 billion cubic meters (bcm) in December thanks to a rise in seasonal demand.
Production for 2012 declined to 1.79 bcm from 1.84 bcm in 2011 on a daily basis. Gas output from Gazprom, the world's leading producer, decreased in 2012 to 1.31 bcm a day from 1.4 bcm in 2011 as Europeans used cheaper alternatives such as liquefied natural gas (LNG) and spot market supplies.
Output at Russia's second-largest gas producer, Novatek , fell to 51 bcm from 53.3 bcm in 2011.
The ministry expected gas production to increase in 2013 to 1.87 bcm a day, or a total 683 bcm, although a 1.2 percent lower than previously seen.
The data for 2012 gas exports was not yet available.


Saudi Arabia has lion’s share of regional philanthropy

Updated 26 April 2018
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Saudi Arabia has lion’s share of regional philanthropy

  • Kingdom is home to three quarters of region's foundations
  • Combined asets of global foundations is $1.5 trillion

Nearly three quarters of philanthropic foundations in the Middle East are concentrated in Saudi Arabia, according to a new report.

The study, conducted by researchers at Harvard Kennedy School’s Hauser Institute with funding from Swiss bank UBS, also found that resources were highly concentrated in certain areas with education the most popular area for investment globally.

That trend was best illustrated in the Kingdom, where education ranked first among the target areas of local foundations.

While the combined assets of the world’s foundations are estimated at close to $1.5 trillion, half have no paid staff and small budgets of under $1 million. In fact, 90 percent of identified foundations have assets of less than $10 million, according to the Global Philanthropy Report. 

Developed over three years with inputs from twenty research teams across nineteen countries and Hong Kong, the report highlights the magnitude of global philanthropic investment.

A rapidly growing number of philanthropists are establishing foundations and institutions to focus, practice, and amplify these investments, said the report.

In recent years, philanthropy has witnessed a major shift. Wealthy individuals, families, and corporations are looking to give more, to give more strategically, and to increase the impact of their social investments.

Organizations such as the Bill and Melinda Gates Foundation have become increasingly high profile — but at the same time, some governments, including India and China, have sought to limit the spread of cross-border philanthropy in certain sectors.

As the world is falling well short of raising the $ 5-7 trillion of annual investment needed to achieve the UN’s Sustainable Development Goals, UBS sees the report findings as a call for philanthropists to work together to scale their impact.

Understanding this need for collaboration, UBS has established a global community where philanthropists can work together to drive sustainable impact.

Established in 2015 and with over 400 members, the Global Philanthropists Community hosted by UBS is the world’s largest private network exclusively for philanthropists and social investors, facilitating collaboration and sharing of best practices.

Josef Stadler, head of ultra high net worth wealth, UBS Global Management, said: “This report takes a much-needed step toward understanding global philanthropy so that, collectively, we might shape a more strategic and collaborative future, with philanthropists leading the way toward solving the great challenges of our time.”

This week Saudi Arabia said it would provide an additional $100 million of humanitarian aid in Syria, through the King Salman Humanitarian Aid and Relief Center.

The UAE also this week said it had contributed $192 million to a housing project in Afghanistan through the Abu Dhabi Fund for Development.