Bandersnatch Research 'Observations' Newsletter Examines Russian Natural Gas Giant Gazprom
Posted on: Tuesday, 11 October 2005, 15:00 CDT
BOZEMAN, Mont., Oct. 11 /PRNewswire/ -- Bandersnatch Research examines Russia's largest natural gas company, Gazprom, in 'Observations', its free weekly newsletter that helps connect the dots for investors and researchers interested in the energy industry. The following excerpt from the October 5, 2005, edition of 'Observations' leads off the discussion.
In the mid-1990s, Russia privatized its oil and gas assets, creating an oligarchy of energy companies such as Yukos, Lukoil, and Gazprom. In the aftermath of last year's dismantling of Russia's largest oil company, Yukos, Gazprom has emerged as the country's largest energy company. Gazprom, Russia's state-owned gas company, now has the world's largest energy reserves at 176 trillion BOE of natural gas, plus 9.6 billion barrels of oil. No country or international oil company even comes close. Saudi Arabia has proved reserves of 262 billion barrels of oil. Even with Saudi claims of being able to increase that by 200 billion barrels, Saudi Arabia remains still a distant second. Gazprom is in a league of its own. When Gazprom sneezes, everybody needs to get a flu shot. And Gazprom just sneezed. It paid $13 billion to acquire a 72.7% stake in Sibneft, Russia's fifth largest oil company. Gazprom's chairman, Alexey Miller, has stated that his goal is to create the world's largest energy company as measured by market capitalization. Sibneft's proved reserves total just 4.83 billion BOE, almost a rounding error when compared with Gazprom. Nonetheless, acquiring Sibneft doubled Gazprom's oil reserves. The addition puts Gazprom on track to earn 11% of its revenue from oil production, a good step on the way to the company's stated goal of 55% of revenue from oil. The purchase was not about Gazprom getting significantly bigger. It was and is about Russia's efforts to leverage its natural resources to become a major player on the world's geopolitical stage once again.
Go to http://www.bandersnatchresearch.com/historical_observation.asp to read the full newsletter and sign up to receive the free weekly email newsletters, including tomorrow's edition on global LNG markets.
Bandersnatch Research LLC offers investors and researchers clean, concise, accurate, unbiased news on the oil and gas industry, presenting it in a unique visual format. More information is available at http://www.bandersnatchresearch.com/.
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Bandersnatch Research
CONTACT: Observations Newsletter, Paul Ausick of Bandersnatch ResearchLLC, +1-406-586-4549, paa@bandersnatchresearch.com
Web site: http://www.bandersnatchresearch.com/historical_observation.asp
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