Page 17 - EurOil Week 20 2022

EurOil NEWS IN BRIEF EurOil

NIS Group’ net profit in the first not reached a conclusion yet,” Majid Chegeni to urgently lower the country’s dependence on
Petkov’s government has set as its priority
reportedly said. “Iran is always after the
quarter at RSD15.6bn development of energy diplomacy and the Russia. After Gazprom stopped deliveries to
Bulgaria at the end of April, this goal became
expansion of the market,” he added.
Naftna industrija Srbije (NIS) Group made a The signalling from Iran, a country that even more important.
net profit of RSD15.6bn (€0.13bn) in the first boasts the second largest gas reserves in Earlier in May, Petkov said that the US
quarter of 2022, while the liabilities of the the world behind Russia, comes as Europe will send two ships with liquified natural
NIS Group based on taxes and other public continues to examine its options for ending gas (LNG) at a price below that charged by
revenues in January-March amounted to its reliance on Russian gas, in the wake Gazprom.
RSD53.2bn, the group announced. of Russia’s invasion in Ukraine. Chegeni, The supply of Azeri gas will significantly
The total of 292.1 thousand conditional however, did not discuss any infrastructure lower dependence on Russia and will lead to
tonnes of oil and gas were produced on options for getting Iranian gas to Europe. lower energy prices in the country.
the assets of the NIS Group in Serbia and The development of routes via Turkey Meanwhile, Deputy Prime Minister Assen
the region, which is a slight increase when or Azerbaijan might be options as might Vassilev said that the European Commission
compared to the production accomplished in shipping gas in the liquefied form should the has assured him that the country will get the
the first quarter of last year (291.8 thousand requisite investments be made. Iran, however, much-desired two-year exemption from the
conditional tonnes). is an ally of Russia and in recent years the planned ban on imports of Russian oil.
The Pancevo Oil Refinery refined 904.9 two countries have consulted closely on gas Bulgaria is seeking the exemption
thousand tonnes of crude oil and semi- development and markets. although the government claims that the
finished products, which is 20% more than Another consideration is that while Iran country can easily go without the Russian
in the comparable reporting period. The has enormous gas reserves, years of sanctions oil. The authorities claim that the country’s
total volume of trade in petroleum products on Tehran have resulted in huge under- sole oil refinery, Lukoil Neftochim, needs
increased by 23% compared to the same investment in developing Iranian gas fields. technological time to adjust to production of
period last year and amounted to 958.6 Last year, the European Union received fuels from LNG.
thousand tonnes, said NIS Group in a press around 155bn cubic metres of Russian gas, Vassilev also said the country has enough
release. accounting for 45% of its imports. fuel for six months and that the budget has
“Although we are faced with very complex Chegeni was also reported as confirming enough buffers in case Russia stops the supply
circumstances, we managed to preserve the that Tehran and Baghdad have signed a of oil unexpectedly.
regular business of NIS, as well as the orderly memorandum of understanding under which “We hope not to get to such a dark
supply of the domestic market with petroleum the Islamic Republic will this summer increase scenario,” Vassilev told MPs on May 13.
products. In the first three months of this its gas exports to Iraq in return for Iraq paying He added that discussions have been
year, we invested 3.8 billion dinars in the existing gas debts owed to Iran. launched on the construction of oil pipeline
development of the company and continued Alexandropoulos-Varna-Constanta that could
to work on strengthening the synergy with replace supplies via ships.
HIP Petrohemija. Later in the year, the NIS Bulgaria to start receiving
Group will remain focused on strong financial
discipline and the implementation of the full gas from Azerbaijan as Lithuanian says no
business model that has given good results in
challenging conditions,” said Kirill Tyurdenev, of July 1 breakthrough in EU talks on
the CEO of NIS.
NIS Group recently changed its ownership Bulgaria will start receiving the full amount of Russian oil sanctions
structure to avoid EU sanctions on Russian- natural gas from Azerbaijan as of July 1, Prime
owned companies. Russia’s Gazprom Minister Kiril Petkov said to parliament on EU member states have not reached any
bought more than 10mn shares of NIS in a May 13. major breakthrough in their talks on Russian
transaction on the Belgrade Stock Exchange, Currently, Bulgaria only receives 300mn oil sanctions, Lithuanian Deputy Foreign
as reported by bne IntelliNews. cubic metres of gas per year from Azerbaijan, Minister Raimundas Karoblis said on May 11,
According to the Central Securities but this amount can be increased to 1bn cubic LRT.lt, the website of the Lithuanian national
Depository, NIS has a total of 163mn issued metres (bcm). broadcaster LRT, reported on May 12.
shares, of which 56.15% were previously The previous government of Boyko “The breakthrough is really small,
owned by Gazpromneft. Following this Borissov said the increased volume would inessential,” he told reporters. “There are
transaction, Gazpromneft owns 50% of NIS become available only after the interconnector various thoughts about value issues, about
shares. Gazpromneft has also lost the right to with Greece is completed and operational. The some countries willing to live as if nothing has
nominate a majority of members to the NIS same was said by the former management of happened, as if the war is not ours.”
board of directors. Alongside Gazpromneft, state-owned gas supplier Bulgargaz. However, The EU has been discussing an embargo on
the Republic of Serbia now owns 29.87% of Petkov said this is no longer the case. Russian fossil fuel imports, including oil, but
NIS shares, Gazprom 6.15% and minority “The good news today is that what has the move is being resisted by some member
shareholders 13.98%. been so far linked to the completion of the states that are heavily dependent on Russian
Greek link in order to have supply of Azeri energy, notably Hungary.
gas is no longer a fact. We can receive the A few weeks ago, the European
Iran considering possibility full amount of Azeri gas before the link is Commission drafted the sixth package of
sanctions on Russia to further punish Moscow
finalised, as soon as from July 1,” Petkov told
of exporting gas to Europe lawmakers. for its invasion of Ukraine.
Bulgaria’s annual natural gas consumption
However, several member states, most
Iran is considering the possibility of exporting is estimated at around 3 bcm per year. The vocally Hungary, are opposed to plans to
gas to Europe, a deputy oil minister was on country was receiving so far only 300mn cubic phase out Russian oil imports by the end of
May 15 quoted as saying by Iran’s official news metres from Azerbaijan, while almost all the this year.
agency for energy news, Shana. remaining amount was delivered by Russian Hungary, Slovakia, and the Czech Republic
“Iran is studying this subject but we have Gazprom. have been offered exemptions to continue

Week 20 19•May•2022 www. NEWSBASE .com P17