Page 14 - FSUOGM Week 28 2021

FSUOGM NEWS IN BRIEF FSUOGM

and today is run on transparent lines and CENTRAL ASIA & SOUTH
market principles. Before the reforms,
which included the elimination of the CAUCASUS Petro Matad receives
RosUkrEnergo gas trading intermediary
co-owned by Russia’s Gazprom and exiled Ankara ‘ready to move with approval in Mongolia for
billionaire oligarch Dmytro Firtash,
Naftogaz was routinely costing taxpayers at pipeline project to supply Block XX licence
least $500mn monthly in losses.
In a July 1 letter to Naftogaz’s supervisory gas to Azerbaijani exclave AIM-quoted Mongolian oil company
board, obtained by the Kyiv Post, current Petro Matad has received an approval from
CEO Yuriy Vitrenko, who replaced Kobolev Nakhchivan’ the Mongolian Ministry of Mining and
in April, called for greater transparency at Heavy Industry for its requested Block XX
the company. Ankara is awaiting a project approval exploitation licence.
from Baku after completing all necessary The licence runs for 25 years (until 1
preparations for an investment that will July 2046) with the option to extend for two
We will keep our promises see a natural gas pipeline laid from eastern periods of five years each.
Turkey’s Ighdir to the Azerbaijani exclave of
Mike Buck, CEO of Petro Matad, said:
to Ukraine on gas transit: Nakhchivan, Turkey’s pro-government Yeni “We are delighted and honoured to have
been awarded what is only the third such
Safak newspaper has reported.
Merkel Nakhchivan’s Sadarak in an effort to meet licence ever granted in Mongolia... We are
The 85-kilometre pipeline is to extend to
looking forward to an extremely active 2022
Ukraine can be confident that Germany all the gas needs of the semi-desert region, with the primary goal of generating revenue
and the European Union will guarantee its which has a population of 500,000. It is from early production at Heron [field] as
status as a transit country for Russian gas unclear whether the gas to be supplied to soon as possible.”
even after the Nord Stream 2 pipeline has Nakhchivan will be Caspian Sea gas sourced The approved plan of development will
opened, Chancellor Angela Merkel said on from Azerbaijan via a pipeline network that concentrate initially on the area of the
July 12, according to Reuters. reaches Turkey via Georgia. Given the enmity proven reserve around Heron 1, expanding
Speaking during a news conference with between Azerbaijan and neighbour Armenia, in phases to target the estimated 194mn
Ukraine's President Volodymyr Zelenskiy, Baku remains unable to supply Nakhchivan barrels (MMbo) of total in place resource
Merkel said that the EU was strong enough with gas via Armenian territory. Hence the potential.
to ensure Russia kept Ukraine's pipeline need for a roundabout route devised by After the approval, Petro Matad
system inside the "portfolio" of pipelines Azerbaijan and Turkey, which often refer to announced that it will resume discussions
linking Russia and the rest of Europe. each other as “brother allies”. with potential farm-in partners and review
"The European Union and Germany will Turkish Energy and Natural Resources funding options to complete the next stage
see to it that this continues in the future Minister Fatih Donmez and Azerbaijani of activity. In parallel, the company will
beyond 2024," she said. "We promised counterpart Parviz Shahbazov previously review its funding options and decide which
Ukraine and will keep our promise. It is signed a memorandum of understanding on option will best facilitate achieving the
my custom to keep my word and I believe natural gas supplies for Nakhchivan. primary goal of generating revenue from
this applies to every future chancellor." Turkey’s BOTAS and Azerbaijan’s Socar early production from Heron as soon as
(Reporting by Thomas Escritt) are to implement the pipeline project. possible.
The annual natural gas consumption of
Nakhchivan stands at around half a billion
cubic metres..

P14 www. NEWSBASE .com Week 28 14•July•2021