• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 17 hours Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 6 hours Ecoside
  • 14 hours Oil at $40
  • 5 hours Japan’s Deflation Mindset Could Be Contagious
  • 15 mins US Military Spend at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 20 hours Not Just Nuke: Cheap Solar Panels Power Consumer Appliance Boom In North Korea
  • 20 hours Haaretz article series _ Saudi Arabia: A Kingdom in Turmoil | Part 1 - Oil Empire
  • 10 hours Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
  • 11 mins "Undeniable" Shale Slowdown?
  • 2 days Is Canada hosed?
  • 15 hours Negative Gas Prices in the Permian
  • 15 hours Gas Flaring
  • 1 day The Number Increases: Swiss To Support Belt And Road Push During President's China Trip
Intel Notes - April 12th

Intel Notes - April 12th

There have been a number…

Goldman Sachs-Backed Russian Oil Firm Plans Expansion

Russia oil

Independent Russian oil and gas producer Irkutsk Oil Company (INK), which has Goldman Sachs as a shareholder, stands out in the state firm-dominated sector in Russia and plans to invest billions of U.S. dollars to develop its gas processing business and boost oil production.

In 2013, Goldman Sachs International became a shareholder with a 3.75 percent stake in INK. The Irkutsk-based oil firm focuses on the geological study, exploration, and production of crude oil, condensate, and natural gas in the Irkutsk region and the Republic of Sakha (Yakutia) in eastern Siberia.

Last September, INK’s chairman and COO Nikolay Buynov met with representatives of the senior leadership of Goldman Sachs to discuss partnership opportunities, including the construction of a gas chemical plant, Irkutsk Polymer Plant, with planned production of 650,000 tons of polyethylene, INK said.

Unlike most of the large Russian oil companies, INK has boosted its crude oil production in recent years and plans to invest between US$3 billion and US$4 billion in the next three years in building gas processing plants, the company told Reuters reporter Olesya Astakhova.

Sure, INK’s crude oil production is tiny compared to that of oil giant Rosneft, but the Irkutsk company has been bucking the trend in Russia’s oil industry in recent years where the sector dominated by large companies have been sluggish to increase output, even before the OPEC/non-OPEC deal capped Russia’s oil production.  

The OPEC+ deal has come at a good time for the company, INK’s head of oil production Dmitry Zotov told Reuters.

“The OPEC deal has given us a chance to stop and draw breath,” Zotov said.

INK benefits from the fact that it is not under Western sanctions like some of the major energy companies in Russia. The downside of operating in eastern Siberia, however, is harsh weather in remote locations and shortage of skilled staff, Reuters notes.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News