Page 13 - FSUOGM Week 11 2022

FSUOGM PROJECTS & COMPANIES FSUOGM

Sanctioned oligarch Timchenko

leaves Novatek board

RUSSIA RUSSO-FINNISH oligarch Gennady Tim- Other shareholders in Novatek included
chenko, recently blacklisted by the EU, is leav- billionaire Leonid Mikhelson, French oil major
Timchenko's assets ing the board of directors of Russia’s top LNG TotalEnergies and state-owned gas supplier
have been barred in exporter Novatek, according to a company dis- Gazprom. Novatek has relied on TotalEnergies
the countries that have closure on March 11. to support the growth in its LNG exports over
imposed the sanctons. Timchenko, who holds a 23.5% stake in the years. The company owns direct stakes in
Novatek, was placed under EU sanctions on Novatek’s Yamal LNG project, launched in
February 28 because of his close ties to Russian December 2017, and Arctic LNG-2, due online
President Vladimir Putin. The pair have known in 2023.
each other since the early 1990s. TotalEnergies was considered a likely partici-
Timchenko has been under US sanctions pant in Novatek’s other upcoming LNG projects,
since 2014. And the UK also added him to its including Arctic LNG-1 and Arctic LNG-3. But
sanctions blacklist earlier this month the French company has said it will not com-
The sanctions mean that Timchenko’s assets mit to further investments in Russia in light of
have been frozen in the countries that have Moscow’s invasion of Ukraine. However, it does
imposed them. He is also barred entry from not intend to relinquish its existing assets in the
those countries. country. ™

NEWS IN BRIEF

SOCAR increased Currently, there is only one refinery sanctions in 2018 meant that the German
operating in Azerbaijan - the Baku Oil
Linde was unable to deliver equipment to
production of gasoline Refinery named after Heydar Aliyev (part of Iran.
As noted by Argus, in 2019 the country
the structure of SOCAR).
by 1.5 times in January- produced 244bn cubic metres of gas, but
with high consumption, only 20 bcm was
Februar Iran launches tenders for exported, which went to Turkey and Iraq.
Russian Foreign Minister Sergei Lavrov
In January-February 2022, the production LNG terminals said Moscow had received US written
of petroleum products in Azerbaijan assurances that sanctions would not apply
increased by 25.4% in monetary terms In anticipation that the nuclear deal will to Russia's co-operation with Iran and was
compared to the same period last year, up be renewed, Iran has announced tenders for in favour of resuming the deal as soon as
to AZN 596.9 mn ($351.1 mn), according to gas liquefaction (LNG) projects, SHANA possible.
the State Statistics Committee. reported.
According to statistics, during the specified State-owned National Iranian Oil Co.
period, the production of motor gasoline (NIOC) announced that it is accepting bids Russian oil major Rosneft
amounted to 225,100 tonnes (an increase for the construction of small LNG terminals
of 51.2%), jet fuel by 92,600 tonnes (an until April without specifying the size, to resume share buyback
increase of 41.8%), diesel fuel by 358,000 location or construction time needed for
tonnes (an increase of 0.5%), heating oil by the projects. The board of Russian oil major state-
33,600 tonnes (an increase of 8.2 times), “Iran is resuming efforts to export LNG controlled Rosneft has approved the
lubricating oils by 7,900 tonnes (an increase as Europe tries to reduce dependence on resumption of its $2bn share buyback
of 21.5%), petroleum bitumen by 38, 200d Russia, and negotiations are underway to programme until December 31, 2023. So
tonnes (growth by 63.9%). lift sanctions on the country. The previous far, after launching the buyback in August
The production of straight-run gasoline eight Iranian LNG projects have stalled 2018, the company has bought 81mn
(naphtha) amounted to 63,000 tonnes (a due to restrictions and lack of capital, shares and GDRs for a total of $370.5mn.
decrease of 17.4%), petroleum coke by including partnerships with France's As analysed by bne IntelliNews,
36,700 tonnes (a decrease of 12.2%). Total and Russia's Gazprom," Bloomberg following the February 24 Russian
As of March 1, 2022, in the form of stocks correspondent Stephen Stapczynski tweeted military invasion of Ukraine, the market
of finished products in the warehouses on March 15. capitalisation of Russia’s stock market has
of the Baku Oil Refinery (BNPZ), there Iran has three large LNG projects: South been cut in half, with investors wondering
is motor gasoline, 46,300 tonnes, naphtha Pars LNG with a capacity of 10mn tonnes whether a rebound will follow and how
600 tonnes, jet fuel 28,500 tonnes, diesel per year with Total, Persian LNG with a fast. The equity trading on Moscow
fuel 124,600 tonnes, fuel oil 9,100 tonnes, capacity of 16.2mn tpy with Shell and Iran Exchange remains shut down by the
lubricating oils 11,000 tonnes, petroleum LNG with a capacity of 10.8mn tpy. Most Central Bank of Russia (CBR) until at least
bitumen 9,300 tonnes, petroleum of the work on the latest project had been until March 21.
coke 14,200 tonnes. completed, but the resumption of US The government said it could spend up

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