Page 20 - EurOil Week 36

EurOil NEWS IN BRIEF EurOil

Carlyle’s BSOG urges Lithuania’s KN sees elaborate, however.
Poland’s PKN Orlen acquired Mazeikiu
Romania to amend offshore revenue down 24.5%, Nafta (now Orlen Lietuva) in 2006 and says
it has invested almost $4bn into the company
law Belarus is key for Klaipeda since then.
Poland’s state-controlled refiner PKN
Black Sea Oil & Gas (BSOG), a company seaport Orlen posted a net profit of PLN3.99bn
that plans to start production in Romania’s (€904.6mn) in Q2, the company said on
Black Sea offshore area at the end of next year, Lithuania’s state-run oil product and liquefied July 30. The result is a jump of 148.9% y/y
warned that it could initiate international natural gas (LNG) terminals operator as well as a changeover from a net loss of
arbitration procedures unless the country Klaipedos Nafta (Klaipeda Oil, KN) saw its PLN2.25bn reported in Q1, the figures show.
amends its offshore law, Economica.net revenue for the year’s January-August tumble
reported quoting company officials. 24.5% year on year to €52mn.
BSOG, controlled by US fund Carlyle, as Monthly revenue for August at KN Greece says it will talk
well as OMV Petrom — another company slumped down by 29.5% y/y to €6.2mn,
expecting to produce natural gas in according to the preliminary results released to Turkey on East Med
Romania’s Black sea area — criticised the on September 7.
provision in the offshore law compelling gas KN said that behind the fall was the lower boundaries once Ankara
producers to sell 40% of their output on local revenue of the Klaipeda LNG terminal,
exchanges. following Klaipedos Nafta’s decisions, stops its “provocations”
BSOG will invest $600mn in the Midia adopted in 2019, to optimise the terminal’s
Black Sea project, which has potential gas costs and reduce the cost of the LNG Greek Prime Minister Kyriakos Mitsotakis
reserves estimated at between 10bn and 20bn terminal infrastructure for consumers said on September 4 that Greece would start
cubic metres. starting from 2020. talks with Turkey to resolve their conflicting
“The Midia Natural Gas Development Revenue from oil-handling operations claims over maritime boundaries in the
Project (MGD) is currently 36% complete, edged down by 1.9% y/y to €21.1mn, and the eastern Mediterranean, but only once Ankara
and we estimate that we will begin gas LNG terminal’s revenue plunged by 38.5% to put a stop to its “provocations”.
production by the end of 2021,” said Mark €29.1mn. “[Our country] can and wants to discuss
Beacom, BSOG CEO. The state owns 72.34% of shares in the demarcation of maritimes zones in the
If the current provisions of the offshore Klaipedos Nafta, which is quoted on the Aegean Sea, in the eastern Mediterranean,
will still be in force at the end of next year, blue-chip Main List of the Nasdaq Vilnius based on international law. But not under
when the gas from Midia will be put on Stock Exchange, and Achemos Grupe holds a threats,” Mitsotakis said during a meeting
the market, the US company may start a 10.41% stake. with China’s top diplomat Yang Jiechi who is
litigation process against Romania at an Klaipeda seaport, where KN operates, visiting Athens, as reported by Reuters.
international arbitration court. has been wary of the political situation He added: “Let the threats go for talks
Still, the company says it believes that in neighbouring Belarus, as Belarusian to begin. Once the provocations end,
the “hostile legislation” adopted at the end shipments, at some 14.1mn tonnes last year, discussions will begin.”
of 2018 will not remain in force because it made up over 30% of Klaipeda seaport’s total Mitsotakis said that Greece’s foreign
is counterproductive for Romania and does handling volume. Algis Latakas, the new minister would deliver a letter from him
not encourage the realisation of investment CEO of the port, has said that the Belarusian outlining Athens’ case to UN Secretary
projects. shipment flow is stable so far. General Antonio Guterres when the two
“Our partners and we are committed to meet in New York on September 4.
developing the MGD Project on the premise Turkey is accused by Athens, Cyprus
that the legislation in question will be Poland’s Orlen mulls new and the EU—particularly France, which has
repealed. If we are about to start production lately sent a warship and fighter planes for
and do not see the restoration of our rights, investment in Lithuania joint military exercises with Greece in the
we will take into account other measures, eastern Mediterranean and has been to the
such as resolving the dispute through Orlen Lietuva (Orlen Lithuania), a Lithuanian fore in pressing for Brussels to hit Turkey
international arbitration,” said the BSOG oil refiner owned by Poland’s largest oil with sanctions—of sending gas and oil
head. group Orlen, is considering an investment exploration vessels into maritime territories
Under the current form of the offshore into a refinery residue upgrading facility in that they hold are either Greek or Cypriot.
law, BSOG must sell 40% of its output on the Lithuania, a representative of the Lithuanian Turkey has hit out at a pact Greece made
national commodity exchanges. economy ministry said on September 3. with Egypt delineating an area of the sea
It has already sealed a contract with Engie According to Evelina Butkute- that Ankara claims infringes the Turkish
for selling its entire output, less the amounts Lazdauskiene, an adviser to the economy continental shelf.
regulated by the national legislation (a 40% minister, Orlen CEO Michal Rudnicki Turkey is also holding war games in the
share, under current regulations).. discussed these plans with the Lithuanian eastern Mediterranean and tensions this
ministers of transport, energy, economy week mounted further when the Turkish
and finance on September 3. She did not navy said it had information that Russia

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