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Soyuzneftegaz () – international investment group of companies headquartered in Russia involved in oil and gas exploration and production, as well as construction. It was founded and headed by Yuri Shafranik.


Activities

Soyuzneftegaz was established in 2000. The Group focused primarily on the development of oil and gas projects world-wide in partnership with other Russian, western or local institutional investors. All commercial projects initiated and managed by Yuri Shafranik were financed exclusively by raising funds from foreign institutional and private investors. Soyuzneftegaz’s strategy was based on the early stage entrance to new emerging projects and their development to ensure stable growth. A number of projects in the energy industry initiated by Yuri Shafranik have been internationally recognised, such as First Calgary Petroleums (FCP), UzPEC Limited and Emerald Energy. These projects were implemented through a series of mergers and acquisitions involving such Russian and international petroleum majors as Italian Eni SpA, Russian Lukoil and Chinese petrochemical giant Sinochem. In 2019 Soyuzneftegaz had completed its active investment phase.


UzPEC

In 2004, Soyuzneftegaz acquired 100% shares in UzPEC from Trinity Energy Group. UzPEC was involved in the production sharing agreement (PSA) for the Central Ustyurt and Southwest Gissar license areas in the Republic of
Uzbekistan , image_flag = Flag of Uzbekistan.svg , image_coat = Emblem of Uzbekistan.svg , symbol_type = Emblem of Uzbekistan, Emblem , national_anthem = "State Anthem of Uzbekistan, State Anthem of the Republ ...
. In 2007,
Uzbekneftegaz The national holding company Uzbekneftegaz (, ) is a state-owned holding company of Uzbekistan's oil and gas industry. History Uzbekneftegaz was established on May 3, 1992. In 1998, it was transformed into a national holding company. In line w ...
signed a production sharing agreement with Soyuzneftegaz Vostok, a subsidiary of Soyuzneftegaz. Under the agreement, Soyuzneftegaz committed to investing $466.2 million in the project, including $369.6 million in the first three years. Until 2008, Soyuzneftegaz implemented a project for the development of oil fields in the Republic of Uzbekistan. The project included eight fields in the Southwest Gissar region and two exploration blocks in the Ustyurt region, which had significant oil and gas potential. In 2008, Lukoil Overseas (a wholly-owned subsidiary of Lukoil) acquired 100% of SNG Holdings Ltd., including SoyuzNefteGaz Vostok Limited, from Soyuzneftegaz. The acquisition included the assets related to the Southwest Gissar and Ustyurt regions. The deal was valued at approximately $580 million.


Rafidain

In early 2003, Soyuzneftegaz signed a contract with the Iraqi authorities for developing the Rafidain (today it is called Abu-Amud) oil field in southern
Iraq Iraq, officially the Republic of Iraq, is a country in West Asia. It is bordered by Saudi Arabia to Iraq–Saudi Arabia border, the south, Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq border, the east, the Persian Gulf and ...
, with the production of 100,000 barrels per day. Soyuzneftegaz received 25.5 million barrels (4.05 million cubic metres) in the
Oil-for-Food Programme The Oil-for-Food Programme (OIP) was established by the United Nations in 1995 (under UN Security Council Resolution 986) to allow Iraq to sell oil on the world market in exchange for food, medicine, and other humanitarian needs for ordinary I ...
, which allowed Iraq to export oil to some companies and then to resell it in the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
,
Europe Europe is a continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere. It is bordered by the Arctic Ocean to the north, the Atlantic Ocean to the west, the Mediterranean Sea to the south, and Asia to the east ...
, and
Asia Asia ( , ) is the largest continent in the world by both land area and population. It covers an area of more than 44 million square kilometres, about 30% of Earth's total land area and 8% of Earth's total surface area. The continent, which ...
. Most of the funds were reserved for humanitarian needs or infrastructure work in Iraq. After the arrival of American troops in Iraq and a sharp deterioration of the situation in the country in 2004, Russian firms and specialists were withdrawn, and all work was practically terminated.


Emerald Energy

In October 2004, Soyuzneftegaz won a tender in
Syria Syria, officially the Syrian Arab Republic, is a country in West Asia located in the Eastern Mediterranean and the Levant. It borders the Mediterranean Sea to the west, Turkey to Syria–Turkey border, the north, Iraq to Iraq–Syria border, t ...
for the onshore Blocks 12 and 14 near the Iraqi border. In 2005, the company acquired a 50% stake in the PSA project in Block 26, in northeastern Syria, from Devon Energy. In 2005, the LSE listed Emerald Energy PLC reached an agreement to acquire a 50% stake in the Block 26 development project in Syria from Soyuzneftegaz. In 2007,
Emerald Energy Emerald Energy plc is an energy exploration subsidiary of Chinese state-owned company Sinochem with headquarters in London but is registered offshore in the Isle of Man. The company specialises in oil exploration and production of hydrocarbons ...
conducted a secondary offering, including 3.5 million common shares, in favor of Soyuzneftegaz. After the additional share placement, Soyuzneftegaz’s stake in the share capital of Emerald Energy increased to 8.39% (5 million common shares). In 2009, the Chinese company
Sinochem Sinochem Corporation () is a Chinese state-owned multinational corporation, multinational Conglomerate (company), conglomerate primarily engaged in the production and trading of chemical industry, chemicals and fertilizer and oil exploration, e ...
acquired Emerald Energy. The total deal value was estimated at $878 million.


Anglo-Siberian Oil Company

Soyuzneftegaz held a stake in the London-based Anglo-Siberian Oil Company. In 2003, Rosneft acquired full ownership of the Anglo-Siberian Oil Company through a public bid on the London Stock Exchange, with the transaction amounting to US$76 million.


References


External links

{{Portal, Russia, Energy
Official web site
Oil companies of Russia Natural gas companies of Russia Companies based in Moscow