Page 17 - FSUOGM Week 10 2022

FSUOGM PROJECTS & COMPANIES FSUOGM

Lukoil urges peace in Ukraine

RUSSIA THE board of Russia’s second-largest oil com- and a settlement of problems through serious
pany Lukoil issued a statement on March 3 call- negotiations and diplomacy.”
The private firm said ing for war in Ukraine to end as soon as possible, Russia’s other leading oil and gas companies
its board "expresses while stopping short of condemning Moscow’s including Rosneft, Gazprom and Novatek have
herewith its deepest actions. not commented publicly on the war in Ukraine,
concerns about The private producer, whose shareholders which is now in its eighth day. But international
the tragic events in include Russian billionaires Vagit Alekperov oil companies (IOCs) working in the country
Ukraine." and Leonid Mikhelson, said its board “expresses including BP, Equinor, ExxonMobil, Shell and
herewith its deepest concerns about the tragic TotalEnergies have all condemned Moscow’s
events in Ukraine.” aggression in the country. The first four of those
“Calling for the soonest termination of the companies have said they will exit Russia’s oil and
armed conflict, we express our sincere empathy gas industry in response, although TotalEnergies
for all victims, who are affected by this tragedy,” has said it will remain but will not invest in any
it said. “We strongly support a lasting ceasefire additional projects.™

NEWS IN BRIEF

Azerbaijani oil price rises meeting in Islamabad between top Turkmen Aluminium Corporation of China and
and Pakistani functionaries.
China Minmetals Corporation on any
by $10 reported that Moscow views the idea of opportunities for potential investments
Last month, Russia’s TASS news agency
in Russian companies or assets. The deals
The price of "Azeri LT CIF" crude oil Russia participating in the TAPI project as are seen as bolstering China’s imports
supplied by Azerbaijan to the world market "politically attractive," quoting special envoy and energy and food security, and not as
increased by $9.93 or 8.36%. Earlier, the of the Russian President Zamir Kabulov. a show of support for Russia’s military
price of one barrel of Azeri Light oil was The TAPI project’s construction works invasion of Ukraine, the sources told
$128.71. Brent oil was worth $129.68 per officially kicked off in December 2015 in Bloomberg.
barrel on the market on 7 March. Turkmenistan. The pipeline is to have a Since 2014 the Kremlin has attempted
In the state budget of Azerbaijan for 2022, length of 1,814 km and a capacity of 30 bn to "pivot to the East" after Western
the price of oil is set at the level of $50. cubic metres of natural gas per annum. sanctions were imposed as a result
The minimum price for Azeri Light oil was of the Crimea annexation, setting
recorded on April 21, 2020 ($15.81), and the up multiple Sino-Russian bilateral
maximum price was in July 2008 ($149.66). Gazprom, Rusal eyed as investment funds and boosting trade
Oil is produced mainly under the turnover with China. However, by 2020
agreement on the development of the Azeri- China considers Russian the Chinese investment in Russia's real
Chirag-Guneshli (ACG) block of fields sector had dropped 2.5-fold.
in Azerbaijan. The share of the State Oil energy, commodity majors Still, China has doubled purchases
Company (SOCAR) in the contract is 25%. of Russian energy products to nearly
China is holding talks with state-owned $60bn over the last five years, Bloomberg
energy and commodity majors on potential reminds.
ADB 'pauses all due acquisitions of the stakes in Russian energy at an early stage and won’t necessarily lead
This time around "the discussions are
and commodity companies, such as gas
diligence and processing on giant Gazprom and aluminium producer to a deal," Bloomberg sources said. Other
United Company Rusal, Bloomberg
sources claimed that some talks between
TAPI pipeline until Taliban reported on March 8 citing unnamed Chinese and Russian energy companies
sources familiar with the matter.
have started to take place.
government legitimised' unprecedented sanction pressure on Russia LNG project of Russian natural gas major
As followed by bne IntelliNews, after
CNPC has a 20% stake in the Yamal
The much delayed $10bn Turkmenistan- for the military invasion of Ukraine, Novatek and a 10% stake in Arctic LNG
Afghanistan-Pakistan-India (TAPI) gas reports claimed that oil traders are staying 2, while CNOOC also owns 10% of Arctic
pipeline project is experiencing new clear of purchasing Russian oil and the US LNG.
uncertainties as the Asian Development is considering an embargo on oil imports.
Bank (ADB) has paused all related due At the same time, Western energy
diligence and processing activities until majors such as British Petroleum, Azerbaijan exported over
the UN acknowledges and legitimises Exxon and Equinor announced pulling out
the Taliban government in Afghanistan, of the country. bne IntelliNews suggested 2.3mn tonnes of oil in
Pakistan’s news outlet The International that Russia could turn to China to fill the
News has reported. trade shortfall left by western sanctions. January
The report cited a top official at Pakistan’s Reportedly, Beijing is in talks
Energy Ministry as sharing the news while with China National Petroleum, The export of oil (with condensate) from
quoting the proceedings of a recently held China Petrochemical Corporation, Azerbaijan in January exceeded 2.3mn

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