Page 13 - EurOil Week 28 2022

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Shipments to Europe help boost alleviate the oil shortages caused by Russia’s feasibility of the 2,000-km pipeline, 1,600
km of which will be located offshore, with a
effective departure from the world oil
Venezuelan oil exports 61% in market. The French government has echoed 10-km section running at a depth of 3,000
metres.
this sentiment, calling for all options to be
June explored so that Russian supplies can be made statement following the assessment of the
DNV said it had “re-issued the feasibility
up elsewhere.
Venezuela saw exports of crude oil and refined FEED documentation provided by IGI
fuels rise by 61% last month as it resumed Poseidon SA up to date”.
shipments of crude to Europe for the first time Bidding process begins for It added: “This independent appraisal
in two years. confirmed the technical maturity of
According to data from Refinitiv Eikon EastMed gas line the project and the benefits of the early
cited by Reuters, Venezuela’s national oil involvement in the design activities of the
company (NOC) PdVSA and its joint ventures A tender was launched last week covering offshore construction companies, thanks to
exported 630,500 barrels per day (bpd) of onshore facilities under the long-awaited competitive dialogue established under the
crude and fuel on average in the month of EastMed gas pipeline, which will connect ongoing tender process.”
June. This marks a significant rise from the gas resources in Cyprus, Egypt and Israel to
previous month but is closely in line with the southern Europe. The $6.1bn pipeline project,
figure reported in June 2021, the news agency which appeared to have fallen out of favour Moldova’s regulator accepts
said. in recent years as governments push for a
Much of the month-on-month transition away from fossil fuels, is clearly only 20% price hike for
improvement in June came as a result of the benefitting from EU and US efforts to find
slump that resulted from PdVSA decision in alternatives to Russian gas. residential gas price
May to begin requiring pre-payment for cargo Developer IGI Poseidon – a 50:50 joint
shipments. That policy shift caused exports to venture (JV) between Greece’s Public Gas Moldova’s energy market regulator accepted
slip significantly. Corp. (DEPA) and Italy’s Edison – has issued a only a moderate rise of the end-user natural
Asia was the main destination for most tender covering $1.3bn worth of engineering, gas prices, which should have increased by
of the additional volumes exported in June, procurement, construction, installation 45% on average and by 60% for the residential
absorbing about two thirds of the total. Cuba (EPCI) and pre-commissioning of EastMed’s users, according to the request filed by
was another major destination, as it imported onshore pipeline in Greece and above-ground Moldovagaz.
66,400 bpd of crude oil, gasoline, diesel and facilities in Cyprus, Crete and on the Greek Thus, the price paid by the households will
residual fuel oil in an effort to meet local mainland. Bids are to be submitted by July 29. increase by only 20% to MDL20.6 per cubic
demand and overcome the obstacle of rising The larger of the two contracts covers 555 meter (8% VAT not included), compared to
world prices. km of 48-inch (1,219-mm) pipelines in the MDL17.2 paid currently, according to ANRE’s
As noted above, another factor South Peloponnese, Achaia and Thesprotia draft decision. The new price should be
contributing to the month-on-month rise in areas, including a 10-km spur that will enforced as of August 1.
exports was the resumption of Venezuelan oil connect EastMed to the Greek grid. This is Moldovagaz asked for a price of MDL27.3
shipments to Europe after a two-year hiatus. valued at just over $1bn. Upstream quoted for residential users.
Italy’s Eni and Spain’s Repsol obtained a green sources as saying this week that this larger In response to ANRE’s proposal for a much
light from the US State Department to move contract is likely to attract bids from Bonatti softer hike, Moldovagaz warned that prices
Venezuelan crude cargoes to Europe in June. and Sicim of Italy and France’s Spiecapag. might not cover its costs. This means that the
These two companies had been the last two The $250mn above-ground facilities company will again face problems in paying
European operators to remain active in the contract covers compressor, metering and the gas bill to Gazprom – a situation that
South American country since Washington pressure reduction stations and an operations, risked prompting disruptions in supply last
began imposing sanctions on Caracas maintenance and dispatching (OMD) centre. winter.
designed specifically to discourage investment IGI Poseidon said it envisages five firms Parliament’s Speaker Igor Grosu assured
in the Venezuelan oil industry. competing for the AG contract. Upstream’s that there will be enough gas for households
The US government’s decision to green- sources said this is likely to include Italy’s this winter and that the state will secure
light the shipments was part of a wider effort Saipem, Bonatti and Renco, German firm financial support. The European Union
to help European nations overcome the Max Streicher and Greece-based Terna. extended a €75mn grant and Romania
energy deficit that has emerged as a result of The developer is seen making a decision recently took steps to disburse the €10mn
the decline in Russian imports since the start soon on the front-end engineering and design grant promised in the Berlin donor
of the invasion of Ukraine in late February. (FEED) bidding contest, with Saipem and conference over the summer. The European
Those efforts, in turn, have opened the door Swiss-based Allseas understood to be in the Bank for Reconstruction and Development
to improved relations between Venezuela and running for the $2.7bn contract. (EBRD) opened a €300mn credit line the
the US. Commenting on the news, Welligence country can use to build up reserves or access
Washington’s decision to approve Energy Analytics said: “Europe’s stance on it for emergency situations. Prime Minister
Venezuelan oil deliveries to Europe also climate change, along with uncertainties on Natalia Gavrilita also said that she would
came as US officials paid a trip to Caracas to the volume of prospective and contingent apply for more loans from the International
discuss the release of US political prisoners. resources in the East Mediterranean, has cast Monetary Fund specifically for tackling the
Ultimately, though, the US delegation failed to doubts on the project. However, the Ukraine energy issues.
secure the jailed citizens’ release. crisis, along with an influx of oil majors (bp, However, capping the prices with no
US overtures to Venezuela have support Eni, Chevron, Shell, ExxonMobil), NOCs/ alternative mechanisms may put Moldovagaz
in the international community. OPEC’s late government entities (QatarEnergy, Mubadala in a difficult situation. Failure to pay the
Secretary-General Mohammad Barkindo Petroleum) and independents (Energean) into monthly bills would add to Moldova’s
recently urged oil-consuming states to accept the region over the last decade, has realigned failure of tackling the historic debt issue
deliveries from Iran and Venezuela on the priorities and reignited interest.” with Gazprom – resulting in gas supply
grounds that these two countries can help Meanwhile, in June, DNV confirmed the termination. Romania could supply enough

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