Energy Firms Make Strategic Moves in Russia, UK, and Italy

Strategic Insights -

Texaco and Russia's Tyumen Oil signed a non-binding memorandum of understanding to establish a marketing joint venture in Russia and Ukraine. The firms aim to develop 60 service stations in Moscow and 30 in Kiev, operating under the Tyumen and Texaco Star Mart brands. The joint venture seeks to finalize terms within the next few months, with the first service stations expected to begin operating by mid-next year.

In a separate development, TotalFinaElf has increased its budget to clean up the Erika oil tanker spill by 18% to 1 billion francs. The company has also tripled spending on coastline cleanup to 220 million francs, allowing it to treat areas with difficult access or sensitive environments.

Meanwhile, analysts are urging Shell chairman Mark Moody-Stuart to extend his tenure, citing his successful restructuring of the company. Moody-Stuart is due to retire in June 2001 and is widely credited with turning Shell's fortunes around.

Key Takeaways:

  • Texaco and Tyumen Oil have signed a non-binding memorandum of understanding to establish a marketing joint venture in Russia and Ukraine, planning to develop 90 service stations in total.
  • TotalFinaElf has increased its budget to 1 billion francs to clean up the Erika oil tanker spill, a 18% increase, and has tripled spending on coastline cleanup to 220 million francs.
  • Analysts want Shell chairman Mark Moody-Stuart to extend his tenure to see the company's restructuring process through, despite being due to retire in June 2001.
  • Moody-Stuart is credited with turning Shell's fortunes around and is being considered for an extension of his tenure.
  • The joint venture between Texaco and Tyumen Oil will operate under the Tyumen and Texaco Star Mart brands.
  • Total's increased budget for the Erika oil spill cleanup will enable the firm to treat areas with difficult access or sensitive environments.

Statistics:

  • 60 service stations to be developed in Moscow and 30 in Kiev as part of the joint venture between Texaco and Tyumen Oil.
  • 1 billion francs, an 18% increase, is the new budget for TotalFinaElf to clean up the Erika oil tanker spill.
  • 220 million francs, a tripled amount, is the new budget for TotalFinaElf to clean up the coastline.
  • Proved reserves at the BHP-owned Keith oil field in the UK North Sea are estimated at 15 million barrels.

Sources:

  • WPA, "Texaco-Tyumen link up in FSU retail"
  • WPA, "Total lifts spending on Erika spillage"
  • WPA, "Analysts want Shell chief to stay on"
  • WPA, "Italy's Eni approves restructuring"
  • WPA, "Norway's Falk tests positive"
  • WPA, "UK and Pilot plan clusters"
  • WPA, "Keith on fast track"