Page 14 - FSUOGM Week 14 2022

FSUOGM NEWS IN BRIEF FSUOGM

Gas supplies from exchange auctions for a total of $371.2mn BTC pipeline transports
in February. Thus, in March, compared to
Azerbaijan to Italy in 2022 February, the sales of foreign currency by 3.8bn barrels of oil since
the State Oil Fund increased by 41.8%.
will amount to 9.5 bcm SOFAZ, the fund sold foreign currencies June 2006
According to the monthly data from
Azerbaijani gas supplies to Italy in 2022 in the amount of $1.624bn at auctions in A total of 3.8bn barrels of crude oil has been
under long-term and spot contracts January-March 2022 (an increase of 9.8% transported via the Baku-Tbilisi-Ceyhan
will amount to 9.5 bcm, according to compared to the first quarter of 2021). (BTC) oil pipeline from the Ceyhan oil
Azerbaijani Energy Minister Parviz SOFAZ is currently the main source of terminal since June 2006, the Anadolu
Shahbazov, who spoke on Saturday in foreign currency sales at foreign exchange Agency reported on 31 March.
Baku at the conference "Azerbaijan-Italy: auctions. SOFAZ sold $6.679bn at foreign “The 5,000th tanker with oil transported
The road leading to the strengthening of a exchange auctions in 2021 (a decrease via the BTC oil pipeline was shipped at the
multilateral strategic partnership". of 8.6% compared to 2020). The average Ceyhan sea terminal. According to BOTAS
According to him, the volume of monthly sales of foreign currency at International Ltd (BIL, the operator of the
Azerbaijani gas supplies to Italy amounted auctions by SOFAZ in 2021 amounted to Turkish section of the BTC), since June 2,
to about 7 bcm in 2021. He said that $556.6mn. 2006, tankers have delivered up to 3.813bn
the expansion of the TAP gas pipeline barrels of crude oil to the world market,” the
(through which Azerbaijani gas is supplied newspaper said.
to Europe) will increase gas supplies not Russia and India are setting At present, oil from the block of Azeri-
only to Italy but also to other European Chirag-Guneshli fields and condensate from
countries. “Therefore, we invite all up direct oil payment the Shah Deniz field, as well as SOCAR oil
interested parties to take part in this [in the are pumped through the BTC oil pipeline.
expansion of the gas pipeline],” he said. channel Also, Turkmen, Kazakh and Russian oil are
Shahbazov added that since December pumped through the BTC.
31, 2020, over 10 bcm of Azerbaijani gas Russian state development bank VEB. The length of the BTC oil pipeline is
has been supplied to Europe via TAP. RF and the Reserve Bank of India have 1,768 km, of which 443 km in Azerbaijan,
The minister emphasised the possibility set up a direct payment channel as an 249 km in Georgia, and 1,076 km are in
of transporting a mixture with a 10th alternative to SWIFT, Indian The Economic Turkey. The throughput capacity of the
hydrogen content via TAP during the Times reported citing unnamed sources. pipeline exceeds 50mn tonnes of oil per
expansion of the gas pipeline. He also urged Reportedly, the channel will serve year.
Italian companies to evaluate the possibility transactions in rupee and rubles, most The project participants are: BP (30.1%);
of cooperation in the export to Europe of notably for Russian oil and gas. SOCAR (25%); MOL (8.9%); Equinor
"green energy" derived from wind power at As followed by bne IntelliNews, Indian (8.71%); TPAO (6.53%); ENI (5%); Itochu
sea, and "green" hydrogen. oil refineries are continuing to buy heavily (3.4%); ExxonMobil (2.5%); INPEX (2.5%),
The same topic was discussed between discounted Urals blend oil, as sanctions for TotalEnergies (5%) and ONGC (2.36%).
Azerbaijani President Ilham Aliyev and the military invasion of Ukraine have had
Italian Minister of Foreign Affairs and Western buyers shunning Russian crude.
International Cooperation Luigi Di Maio: India is also looking to increase its imports
"Azerbaijan is the main trading partner of of coking coal from Russia.
Italy in the South Caucasus, 95% of Italy's Reportedly, the representatives of the
trade with the South Caucasus falls on Central Bank of Russia (CBR) and the
Azerbaijan. The numbers are very good, Reserve Bank of India will meet at the
almost $10bn in 2021. I am sure that this beginning of April to come up with the
year this figure will increase due to the regulatory and operational basis for direct
growth of Azerbaijani gas supplies to Italy", cross-border trade and banking operations.
Aliyev said during the meeting. Aliyev Separate reports from Bloomberg
repeated that the gas flow from Azerbaijan claimed that the discount for otherwise
to Italy in 2021 amounted to 7 bcm, and this “toxic Russian oil” for India is now as wide
year "there will be even more." as $35 per barrel of Urals blend crude.
The first such discounted shipment could
amount to 15mn barrels and could be paid
SOFAZ increased foreign directly in rubles between Rosneft and
Indian Oil Corp. (IOC).
currency sales by 42% in for 2% of India’s overall purchases from
In 2021, oil from Russia accounted
March, by 10% in Q1 overseas, or about 33mn barrels.
Previously unconfirmed reports claimed
The State Oil Fund of Azerbaijan (SOFAR) that Indian Mangalore Refinery, Bharat
sold foreign currencies at foreign exchange Petroleum and Petrochemicals had also
auctions for a total of $526.2mn in March considered buying discounted Urals blend
2022, the fund told Interfax-Azerbaijan. oil.
SOFAZ sold foreign currency at foreign

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