Page 14 - EurOil Week 11 2022

EurOil NEWS IN BRIEF EurOil

Croatia’s INA starts gas or exploitation of hydrocarbons,” Ascent voiced their intention in recent weeks to stick
with the 2018 OPEC+ deal to restrain output to
Resources said in filing with the London
production from new well in Stock Exchange. stabilise the market. On March 2, the OPEC+
The company said it plans to reinforce
group announced that it would add 400,000
Adriatic Sea its claim against Slovenia under the Energy bpd of combined oil production in April, while
noting that its January output was nearly 1mn
Charter Treaty and UK-Slovenia Bilateral
Croatian oil and gas company INA has Investment Treaty, given that the joint bpd below target.
started production of natural gas from a new venture has always expected to be able to Meanwhile, comments last week by Yousuf
well on the Ika gas field in the Adriatic Sea, continue the historic practise of conducting Al Otaiba, the UAE’s ambassador to the US
it said in a statement on March 17. low volume mechanical stimulation who said that the country favoured produc-
The news comes amid threats to natural techniques in order to flow the tight gas tion increases, noting it would be “encour-
gas supplies to Europe from Russia. reservoir. aging OPEC to consider higher production
“The Ika B-1R-DIR well was successfully “The company and its legal advisors are levels”, appear to be an aberration, with Emi-
connected to the existing INA production reviewing these latest developments which rati Energy Minister Suhail al Mazrouei clari-
system in the northern Adriatic, securing the could lead to a significant increase in the fying that the UAE remains committed to the
supply of an additional 150,000 cubic metres company’s damages claim,” it said. OPEC+ agreement.
of natural gas per day into the Croatian gas The company said it continues to await This week, Reuters quoted a source close
system,” the company said in a statement fulfillment of the conditions related to to Emirati decision-making as reiterating
filed on the website of the Zagreb Stock the signed and binding damages based on the UAE’s commitment. This followed a call
Exchange. funding agreement for the international between Japanese Prime Minister Fumio
The annual production of the new well arbitration dispute. Kishida and Abu Dhabi Crown Prince Sheikh
is estimated at around 55mn cubic metres, In September 2020, the company said Mohamed bin Zayed Al Nahyan during which
which is equal to around 7% of INA’s total it filed a lawsuit against Slovenia seeking the former asked for the “UAE’s proactive
offshore and onshore gas production. €50mn in damages caused by the authorities’ contributions as an OPEC member” in stabi-
In February, Croatia said that its floating refusal to grant a permit for the use of lising global crude markets. He did not clarify
LNG (FLNG) terminal off the island of Krk hydraulic fracturing, needed to boost whether he had specifically requested an oil
will secure enough gas in case Russia stops production at its Petisovci gas field. output increase.
natural gas deliveries following the sanctions Later on, Ascent Resources had submitted Abu Dhabi was one of the key proponents
imposed on Moscow after it invaded a damages calculation to the Slovenian of last year’s upward adjustment of the base-
Ukraine. government totalling over €100mn, as part of line for the OPEC+ quotas, which will unwind
Prime Minister Andrej Plenkovic has said direct pre-arbitration settlement discussions. the restrictions by almost 1.6mn bpd when it
in the statement that the terminal secures Ascent Resources, which holds a 75% comes into effect in May.
Croatia alternative sources of natural gas interest in the Petisovci gas field, launched Saudi produced an average of around
supplies. international arbitration proceedings against 10.2mn bpd in February, with the UAE pump-
Slovenia over a fracking dispute in 2021. ing 2.95mn bpd.
The US has repeatedly asked OPEC kingpin
Ascent Resources may UK presses Saudi, UAE for Riyadh to expand production to bring prices
lower, but given the success of the deal, and
increase damages claims for higher oil output amid reports of discontent with US foreign
policy, the Saudis have held firm. Johnson is
Petrovci gas field in Slovenia UK Prime Minister Boris Johnson flew to the UK is also seen agreeing to sizeable financial
now assuming the role of emissary, while the
UK-based oil and gas company Ascent Gulf this week to urge Abu Dhabi and Riyadh deals during his trip to Riyadh. However, given
Resources said on March 16 it may to consider making oil production increases that the deal has ensured stable, high prices for
significantly increase its damages claim to counter price rises as conflict in Ukraine exporters, reinvigorating OPEC after years
against Slovenia after the country proposed continues. of apparent reduced influence, he looks to be
further restrictions on hydraulic stimulation The move follows the UK’s decision to phase faced with an uphill battle.
of gas extraction. out Russian oil by the end of the year and the
Ascent is in dispute with Slovenia due announcement by US President Joe Biden that
to the refusal of Slovenian authorities to “all imports of Russian oil and gas and energy” Bulgartransgaz calls €154mn
grant a permit to the company for hydraulic would be banned.
fracturing at the Petisovci gas field. While Russian oil accounts for just 6% of tenders for expansion of
In January 2022, Slovenian government the UK’s oil imports and 8% of oil and prod-
endorsed amendments to the mining act ucts imported by the US, concerns about pro- Chiren gas storage facility
under which it bans high-volume fracking duction shortfalls amid geopolitical insecurity
and sent them to the parliament for approval. have led to significant price volatility and con- Bulgartransgaz, Bulgaria’s gas network
Ascent entered a joint venture with a sumer nations facing higher fuel and power operator, said on March 15 it has called
state-owned Slovenian company Geonergo costs. two public tenders worth a combined
to extract gas from Petisovci field in Meanwhile, the International Energy BGN300.8mn (€153.8mn) to expand
northeastern Slovenia in 2007. Agency (IEA) estimates that Saudi and the the capacity of the Chiren underground
“Recent proposed amendments to the UAE have around 3.3mn barrels per day (bpd) gas storage facility.
Slovenian mining law, which include further of ‘spare capacity’ that could be brought on to In January, Bulgartransgaz said that
restrictions on hydraulic-stimulation now the market within three to four months. the EU will provide €78mn under the
is seeking to prohibit all forms of hydraulic However, both countries, as well as several Connecting Europe Facility (CEF) to
stimulation for the purpose of exploration other of the world’s top oil producers, have Bulgaria for the expansion of the Chiren

P14 www. NEWSBASE .com Week 11 17•March•2022