Page 14 - FSUOGM Week 08 2023

FSUOGM NEWS IN BRIEF FSUOGM

Market discusses Kazakhstan's delegation also expressed interest in the across the Atlantic have seen a fivefold
increase in their daily earnings due to the
participation of Azerbaijani companies
first experiences with KEBCO as investors in various fields of energy in Western sanctions on Russia.
The European Union's ban on almost all
Pakistan,” the information says.
brand launched to distinguish oil Azerbaijan since February 18, 2023, and will has forced ships to sail longer distances,
The Pakistan delegation had been in
seaborne petroleum imports from Russia
from Russian crude stay till February 23. decreasing the fleet's efficiency and boosting
the cost of freight. Longer voyages have
First market reports are coming through as caused Russian crude shipped from the
to Kazakhstan's experience with its KEBCO Azerbaijan increased gas Baltic to be shipped three times as far as it
oil brand, launched last year to distinguish was a year earlier.
the country's oil exports from those of exports from Shah Deniz by In the longer term, shipowners point to a
Russian crude and avoid any mistaken limited supply of new vessels bolstering the
imposition of Western sanctions. almost 13% y/y in January case for sustained high rates. If the Russia-
While the Urals and KEBCO blends are friendly fleet doesn't return to serving
physically the same, Urals now trades at The export of Azerbaijani gas from the Western markets, the cost of hauling fuels
a $30 discount to Brent, while KEBCO is Shah Deniz field in January amounted to such as gasoline and diesel may remain
around $20 more expensive than Urals. 1.89bcm, which is 12.6% higher than in higher for longer, Bloomberg warns.
Nevertheless, the price of Kazakh oil January 2022, the State Statistics Committee
pumped through Russian pipelines is still said in a report. The share of gas exports
being pressured by the sanctions against from the Shah Deniz field accounted for Albania seizes tanker suspected
Moscow. 45.4% of the total volume of gas transported
Traders are cautious about buying from through main gas pipelines in January. of sanctions-busting Russian oil
Russian ports, some vessels avoid them and In general, in January, the main gas
freight and insurance have become more pipelines of Azerbaijan transported delivery, as Russian shipborne
expensive, leading to a sizable discount to 4.17bcm of gas (an increase of 13.7%). As
Brent, according to a Reuters report this reported, in 2022, gas exports from the exports soar
week that cited traders. Shah Deniz field 2022 amounted to 20.8bcm
As a result, it is currently more profitable (an increase of 18.1%). The Grace Felix oil tanker, flying the
for Kazakh producers to sell crude Gas from the Shah Deniz field is Liberian flag, was seized by authorities
domestically than to ship it via Russia's Ust- currently exported to Georgia, Turkey on February 20, suspected of breaking
Luga port, the report added. and Europe (Italy, Greece, Bulgaria and sanctions by smuggling oil out of the
Romania). country, as Russia’s shipborne oil exports
The contract for the development of the soared.
SOCAR may take part in creation Shah Deniz field was signed in Baku on Porto Romano, the industrial port located
The ship was due to unload its fuel at
June 4, 1996, and ratified by the parliament
of LNG terminal in Pakistan on October 17 of the same year. The equity in Durres in Albania when officers swooped
participation of the parties in the contract is
and impounded the ship. Police intelligence
Azerbaijani Energy Minister Parviz currently as follows: bp (operator - 29.99%), suspected the ship was illegally transporting
Shahbazov held a meeting with the LUKOIL (19.99%), TPAO (19%), SOCAR Russian oil after the certificate of origin for
Minister of State for Petroleum Affairs (14.35%), NICO (10%) and CJSC "Cenub the cargo was found to be missing.
of the Ministry of Energy of Pakistan Qaz Dehlizi" (6.67%). Gas production from Investigators say the oil on Grace Felix
Musadik Masud Malik on 21 February. On the Shah Deniz field began in December was ordered by AV International Group,
the Pakistani side, the meeting was also 2006. an Albanian LNG trader owned by local
attended by the Minister of the Investment businessman Piro Baren, the Albanian Top
Council Chaudhry Salik Hussain and the Channel TV reported.
Minister of Industry and Production Syed Up to 600-tanker “shadow fleet” Russia saw a significant spike in its
Murtaza Mahmoud. seaborne crude exports last week, as it gets
"During the meeting, the possibilities keeps Russian oil flowing ready to cut production by 500,000 barrels
of expanding cooperation between the two per day (bpd) in reaction to the recent two
countries were considered. Discussions A vast fleet of oil tankers worth $2.2bn has rounds of embargoes imposed by the EU in
were held on the development of current been assembled to keep Russia's crude oil December and February.
cooperation in the supply of liquefied and fuel exports flowing, while the ships' The country exported 3.6mn bpd of
natural gas (LNG) and petroleum products, ownership details and involvement with crude oil from its ports in the seven days
as well as SOCAR's participation in the Russia are wrapped in secrecy, according up to February 17, marking a 26% increase
creation of an LNG terminal in Pakistan," to a report by Bloomberg citing market week on week and flows were at multi-week
the press service of the Ministry of Energy participants. highs from all its Baltic, Black Sea, Arctic
said. Commodity trading giant Trafigura and Pacific terminals, with a less-volatile
According to the agency, during the estimated it could total 600 ships, of which four-week average of exports also rising,
meeting, the parties noted the importance 400 are crude haulers. Privately, some Bloomberg reports.
of the energy cooperation agenda covering shipowners put the figure slightly lower – The Grace Felix had departed from
the areas of renewable energy and energy between 10% and 12% of the global tanker Azerbaijan and was allegedly loaded with
efficiency. “It was recommended to evaluate fleet, according to Bloomberg. Russian oil in Greek waters, near the port of
the current areas of bilateral energy Notably, this “dark fleet”, operating Kalamata, from another ship, the TV station
cooperation and participation in promising outside international markets, could result said. While Russia used to send the majority
projects within the framework of the Joint in higher shipping costs for Russia's rivals. of its oil via the Baltic port of Primorsk to
Working Group on Energy. The Pakistani Reportedly, the vessels carrying oil products destinations in Europe, since the war started

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