Page 16 - FSUOGM Week 31

FSUOGM PERFORMANCE FSUOGM

Kazakh oil output up 2% m/m in

July, exceeding OPEC+ quota

KAZAKHSTAN KAZAKHSTAN raised its oil output in July by tonnes of oil in 2020, 86mn tonnes in 2021 and
2% m/m to 1.331mn barrels per day (bpd), two 89.6mn tonnes in 2022.
Kazakhstan was industry sources familiar with preliminary data
accused of poor told Reuters on August 3. KMG data
compliance back in The figure may indicate that the country Kazakhstan's state oil producer KazMunayGas
May. is still producing slightly over its target under (KMG) meanwhile reported a 3.1% year on year
a global oil production cut pact. It places oil decrease in oil and gas production in the first half
output at 12,000 bpd above Kazakhstan’s tar- of the year, to 11.35mn tonnes. Gas output was
get (1.319mn bpd) under the OPEC+ agree- up 3.9%, however, at 4.32bn cubic metres (bcm),
ment. Kazakhstan reduced its oil output in June it said on August 3.
beyond the level it has agreed to cut as part of the The company's refining through came to
OPEC+ global production reduction agreement 8.29mn tonnes in the six months, down 17.1%
in order to compensate for its poor compliance year on year, likely as a result of COVID-19 travel
seen in May, the Kazakh energy ministry said restrictions earlier on in the year.
in July. In a breakdown of its oil production, KMG
The Central Asian nation produced 5.3mn said that its share of output at Tengiz, Kazakh-
tonnes of oil in June, or 1.297mn barrels per day stan's biggest oilfield, fell 4.7%, whereas its
(bpd), excluding gas condensate, compared with share of Kashagan surged 42.5%. Kashagan was
6.1mn tonnes of crude produced in May, the min- expanding its production for much of last year.
istry said. The country will continue to maintain KMG's share of production at Karachaganak
this level of production in August and September also increased by 5.2%. Output at all the com-
to offset the overproduction in May, it added. pany's other main joint ventures – OMG, MMG
Kazakhstan now plans to produce 85.2mn and EMG – declined.™

POLICY

Poland fines Gazprom for obstructing

Nord Stream 2 probe

POLAND POLAND’S anti-monopoly office UOKiK fined Stream 2. Despite its legal obligation to co-oper-
the Russian gas company Gazprom PLN213mn ate, the company failed to provide such informa-
The Polish regulator (€48.27mn) for “failure to co-operate” in tion,” UOKiK said in a statement.
says those that financed UOKIK’s investigation into the construction of Nord Stream 2 is running a year behind
the project should have the controversial Nord Stream 2 pipeline, the schedule after meeting legal obstacles in the EU
sought its permission. office said on August 3. and the US. Brussel legislated to apply its energy
Nord Stream 2 will double Russia’s capacity to regulations to the pipeline, meaning Gazprom
pump gas directly to Germany via the Baltic Sea. may have to divest the pipeline and offered its
Poland, Ukraine and other CEE states are wary flow capacity to third parties.
that the new pipeline will be as much a business The US has also threatened sanctions against
venture as Moscow’s pressure tool on the region, the pipeline. “We will do everything we can to
Ukraine in particular. make sure that that pipeline doesn't threaten
UOKiK says the companies involved in the Europe," US Secretary of State Mike Pompeo
financing of the controversial pipeline should told a Senate hearing on July 30.
have asked its permission . It claims its approval “We want Europe to have real, secure, stable,
was necessary safe energy resources that cannot be turned off in
The companies in question are Gazprom and the event Russia wants to,” Pompeo added.
its international partners in the Nord Stream 2 But the project has by now advanced enough
project: France’s Engie Energy as well as Uniper, for Gazprom to eye the possible sanctions as not
OMV, Royal Dutch Shell and Wintershall, all via insurmountable. The Russian company said in
registrations in the Netherlands. late July it would be able to resume the stalled
“We requested Gazprom provide us with construction of the pipeline in early August with
contracts concluded by his subsidiary with other just a 120-km section left to complete in Danish
companies financing the construction of Nord waters. ™

P16 www. NEWSBASE .com Week 31 05•August•2020