News & Analysis » Russia

Gazpromneft, Tatneft, MMK news brief

By Finam

- MMK places RUB 10 bn exchange-traded bonds with 9.7% yield. Russia’s No. 1 metal maker Magnitogorsk Metallurgical Plant (MMK) fully floated Wednesday its 2-series exchange-traded bonds worth RUB 10 bn, with a yield rate for the first two years of circulation set at 9.7%, the issuer reported.

- Tatneft’s investments will top USD500 mn in 2010. Tatneft intends to ramp up investments in 2010 vs. usual USD500 mn, the company’s board member said at a conference call Wednesday. “As a rule, this is USD500 mn per year. In 2010, this will be more due to the need for additional investments in Libya”, Vladlen Voskoboynikov said. Tatneft, which ranks six in terms of oil output in Russia, earlier was assigned several oil blocks in Lybia on the PSA basis. The company is holding exploration activities at its blocks.

- Gazpromneft and partners will invest USD2 bn in an Iraq-based project. Gazpromneft which last week was awarded a license to tap a major oilfield in Iraq, plans to invest jointly with its partners some USD2 bn in its development and extract the first crude, the company’s Deputy CEO Boris Zilbermitz said. Gazpromneft, which ranks fifth in terms of oil output in Russia, has won the tender to tap the Badra oilfield jointly with Turkish Turkiye Petrolleri, Korean Kogas and Malaysian Petronas.

- Russia’s industrial output grew on low base and high production. The Russian industry has posted the first post-crisis increment since October 2008 in annual terms due to low base effect, incremental output in export-oriented industries and cold weather, according to the Federal State Statistical Service. Although this fact is upbeat, it should be borne in mind that the November 2009 data are compared to the “collapsed” November 2008, when industrial output crashed as much as 8.7% y-o-y. Last month, industrial output climbed 1.5% on November 2008 and 2.0% on October 2009.