Page 19 - FSUOGM Week 29

FSUOGM NEWS IN BRIEF FSUOGM

Russian Transneft Gazprom Nedra starts pandemic, the country’s Antimonopoly
Agency claims that the “real wholesale cost”
supported by most of drilling rig mobilisation of a litre of LNG should currently stand at
TJS3.20.
government in tariff row delivery from port of under the Government of Tajikistan,
The head of Antimonopoly Agency
with Rosneft Murmansk Abdumajid Muminzoda, told reporters last
week that the agency is currently inspecting
Russian oil pipeline operator Transneft is Gazprom Nedra has started the mobilization a number of companies supplying LNG
supported by most of the government in the and delivery of an offshore drilling rig from to Tajikistan. Muminzoda noted the price
row over the company's tariffs for oil pipeline the port of Murmansk to the place where increases may be “unlawful”.
transportation started by state oil giant Rosneft, geological exploration is underway on the
Kommersant daily reported on July 17 citing continental shelf of the Kara Sea. On July 18,
unnamed sources. the Nanhai VIII semi-submersible floating Moldovan businessman
As reported by bne IntelliNews, Rosneft drilling rig left the port together with the
and Transneft are in a bitter dispute towing and escort vessels, the company closer to foreclosing on
over the compensations for the dirty oil informed.
incident at the Druzhba pipeline in 2019, The semi-submersible floating drilling Kazakh oilfield
as well as oil pipeline transportation rig was engaged by Gazprom Nedra for
tariffs. offshore drilling exploration works at the The Amsterdam Court of Appeal published its
Reportedly, the Ministry of Energy, Leningradskoye gas condensate field. judgment in the case of Anatolie Stati et al v the
the Ministry of Finance and the Federal Gazprom Nedra is a wholly-owned Republic of Kazakhstan, rejecting Kazakhstan’s
Antimonopoly Service (FAS) are arguing subsidiary of PJSC Gazprom, one of Russia's appeal, therefore affirming recognition on
that the tariffs and their indexation leading multi-business service companies Dutch soil of a $543mn arbitral award issued
schedule should be left intact. Only the in the oil and gas industry. Gazprom Nedra by a Stockholm-seated arbitral tribunal in
Ministry of Economic Development sees was established in 2019 by integrating the December 2013.
the tariffs as high and supports cutting production potentials of Gazprom georesurs The Dutch court ruling is the latest
them five-fold to 5% by 2025. and Gazprom geologorazvedka. development in the Stati parties' long-
The EconMin argues that Transneft's running international battle to enforce
profitability is high enough to afford lower the award for Kazakhstan's violations of
tariffs (the profit margin is estimated at the investor protection provisions of the
22.6% and growing to 25% by 2024), while CENTRAL ASIA & SOUTH Energy Charter Treaty. Back in 2013, a
noting that Transneft faces considerably Sweden based arbitration tribunal found
less risks than its peers in other CAUCASUS that Kazakhstan had violated international
competitive oil transportation markets. law by failing to treat the Stati parties'
Transneft representatives commented Tajikistan sees a rise of investments in Kazakhstan fairly and
to Kommersant that the margins on equitably.
oil transportation alone do not exceed over 50% in LNG prices Anatolie Stati, the CEO and sole
10%, while lowering the tariffs to 5% shareholder of Ascom Group, one of the
would make infrastructure investment since end-May award creditors, said that “the judgment
impossible. also paves the way for the foreclosure of the
Denis Marichenko of Fitch Ratings Liquefied natural gas (LNG) prices in Tajikistan attached shares in KMG Kashagan B.V.”
reminded that lower tariffs would hurt have risen more than 50% in Dushanbe to Tajik In the meantime, the award creditors
the shareholders through lower dividends, somoni (TJS) 4.40 (€0.37) per litre as of July 16, will continue with their efforts to collect
but believes that as the oil prices recover, up from TJS2.50 recorded at the end of May, any and all amounts due under the award
the debate over transportation tariffs will Asia-Plus news agency reported. and related legal costs in all available
become less relevant. The majority of Tajik vehicles rely on jurisdictions, Stati also said.
Most recent reports suggested that LNG for fuel instead of petrol, as LNG is
Transneft and Russian Railways (RZD) relatively cheaper. The spike in LNG prices
so far lack a clear decision on 2019 has led to an increase in taxi fares and the
dividends, despite the Finance Ministry cost of freight in the country.
counting on compliance with the 50% of While some of the rise in LNG prices
IFRS net profit payout requirement. may be due to economic troubles that have
hit the country and its regional neighbours
due to the coronavirus (COVID-19)

Week 29 22•July•2020 www. NEWSBASE .com P19