Gazprom reports on export revenue

Gazprom, the world's biggest natural-gas producer, expects 2004 export revenue to increase 7.9 % from last year's record amid surging prices.
The Moscow-based company will earn $ 17.8 bn from sales of gas to buyers outside of the former Soviet Union this year, compared with $ 16.5 bn last year, deputy CEO Alexander Ryazanov told an industry conference in Turkmenistan's capital, Ashgabat.

Gazprom will export 143 bn cm of gas outside of the former Soviet Union, compared with a plan of 140 bn cm, he said. That excludes Central Asian gas pumped through Russia. Gazprom exported 133 bn cm of gas in 2003.
Gazprom is the nation's biggest taxpayer, contributing $ 40 mm a day to the federal budget, Ryazanov said. The company plans to export 145 bn cm of gas to buyers outside of the former Soviet Union, he said. Gazprom expects to extract 547 bn cm of gas next year, compared with this year's 545 bn cm.

Combined with Rosneft, Gazprom expects to produce 35 mm tons of oil and gas condensate in 2005, Ryazanov said. That would be equal to about 700,000 bpd.
The forecast would mean a 7.7 % increase from the current combined output of both companies. Gazprom this year plans to extract 11.8 mm tons of liquid hydrocarbons, and Rosneft has set a target to pump 20.7 mm tons of crude.

Ryazanov also said Gazprom may invite petrochemical majors to team up or buy a stake in its chemical unit, Sibur, after it finishes the unit's restructuring in two to three years.
"We are ready to consider their involvement, but selling it today would not be profitable, because Sibur's value currently stands at 40 bn roubles ($ 1.4 bn)," Ryazanov said. "I think its value will be 80 bn in a year and could grow to 100 bn roubles in two years," he added.

He named German firm BASF, the United States' Dow Chemical and China's PetroChina among the companies that have shown preliminary interest in Sibur. The output of Sibur, Russia's biggest petrochemical producer, includes liquefied gases, polymers, rubber and tires.
The heavily indebted unit, which has no hydrocarbon output of its own, signed an amicable agreement in 2002 with its creditors -- Gazprom and the banks.

Earlier, the gas monopoly offered to restructure the 40 bn roubles it is owed by Sibur and set up a new entity to which Sibur would transfer all its assets.
Under the plan, the old Sibur would cease to exist when it pays back its debt, while the new entity would be free of debt immediately and could develop, borrow money and invest in new projects without waiting until the old debts are fully paid.