Page 14 - Euroil Week 45 2019

EurOil PROJECTS & COMPANIES EurOil
Biggest Turkish refiner Tupras plunges to Q3 net loss
TURKEY
LARGEST Turkish refiner Tupras has reported a net loss of Turkish lira (TRY) 156mn for the third quarter versus a net profit of TRY542mn for the same period of last year.
Revenues declined nearly 23% on an annual basis to TRY23.3bn in the quarter.
The company’s operating profit dropped 24% y/y to TRY608mn. Financial expenses increased to TRY817mn from TRY171mn
“The decline in Q3 profit was driven by nar- row differentials and natural gas price hikes,” Tupras said in a presentation on its website.
The company sold a total of 7.8mn tonnes of products (including exports) in Q3, down from 8.7m tonnes a year earlies. Its sales on the domes- tic market declined to 6.4mn tonnes from 7.7mn
tonnes while shipments to foreign markets inched up to 1.4mn tonnes from 1mn tonnes.
The company also reported that its 9-month net income plunged to TRY340mn from TRY1.95bn in the same period of 2018 despite the 7% y/y increase in revenues to TRY68bn.
Data also showed that Tupras’s operating expenses soared 43% y/y in the first nine months of the year to hit TRY1.24bn.
Tupras is targeting the sale of around 30mn tonnes of products this year while its output target for 2019 is around 28mn tonnes. It has forecast that its capacity utilisation rate will be between 95% and 100% this year. The com- pany is investing some $150mn in refining operations.™
Gas from TurkStream to go through Bulgaria, Serbia before May 2020, PM Borissov says
Gas from the Turkish Stream pipeline will go through Bulgaria and Serbia before May 2020, Bulgarian Prime Minister Boyko Borissov said as quoted by eKapija on November 11.
Work will commence in the fourth quarter and continue for 70 days. Maersk is yet to select a jack-up rig to complete the well.
Gazprom has determined the itinerary
of the second line of the Turkish Stream pipeline will span Bulgaria and Serbia starting from 2020, then go through Hungary and Slovakia starting from 2021 and the second half of 2022, respectively. According to Bulgarian Energy Minister Temenuzhka Petkova, the country will spend €1.4bn ($1.59bn) to build the new gas link to Turkey to transport Russian gas from the Turkish Stream pipeline.
At the end of October, Bulgaria’s state- owned gas network operator Bulgartransgaz said it had secured €200mn in six-month loans from several lenders, including Citibank Europe, ING Bank, UniCredit Bulbank and the International Bank for Economic Co-operation. The funds will be used for the construction of the Turkish Stream extension in the country.
NEWS IN BRIEF
Meanwhile, Serbia has already launched the construction of its stretch and in August announced it had completed the construction of the first section of the 403- km leg.
bne IntelliNews, November 11 2019
Ithaca seals Chevron deal
North Sea-focused Ithaca Energy has closed the acquisition of Chevron’s UK offshore assets, it said on November 11.
Under the $2n deal, Ithaca has bought stakes in 11 producing fields with a net output of 80,000 barrels of oil equivalent per day this year. This includes 60% liquids and 40% gas. Ithaca will assume operatorship of four of the fields, Alba, Alder, Captain and Erskine.
“The significantly enlarged operations provide an excellent platform from which to maximise the value of our high-quality asset portfolio and establishes the company as a leading UK North Sea oil and gas producer,” CEO Les Thomas said in a statement.
Ithaca is owned by Israel’s Delek Group. Delek said separately that Ithaca had signed agreements with BP on the distribution and marketing of gas and oil from the acquired assets over a five-year period.
November 11 2019
Centrica launches sale of Spirit Energy
Centrica has formally launched the process of selling off its stake in North Sea explorer Spirit Energy, according to Reuters.
The energy supplier, along with fellow owner Stadtwerke Muenchen (SWM), has sent a sales document to prospective buyers, the news agency reported.
Centrica, which has a 69% stake in Spirit, said in July it would offload its share by the end of 2020, as part of efforts to reduce its debt and focus more on low-carbon energy.
According to the document seen by Reuters, Spirit produces 130,000 barrels of oil equivalent per day, although this is expected to fall to 100,000 boepd by 2025. However the company also has 270m boe in proven and probable reserves.
SWM controls the remainder of Spirit, launched in 2017. The producer operates in the UK, Norway, the Netherlands and Denmark, although its main focus is the southern North Sea.
November 12 2019
Gazprom drops Eurobond issue amid Naftogaz stand-off
Russian gas giant Gazprom called off the CHF-denominated Eurobond issue due to the ongoing conflict with Ukrainian
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Week 45 14•November•2019