Page 16 - FSUOGM Week 08 2023

FSUOGM NEWS IN BRIEF FSUOGM

13.5bn cubic metres of gas during 2023 in We updated some equipment and carried pipeline
December, restricting purchases to only out a number of other works. This year,
non-Russian supplies. there are no plans to stop any production Kazakh state-run oil and gas producer
Members of the European Parliament platforms at the ACG and Shah Deniz KazMunayGas (KMG) is set to supply
backed legislation enabling joint gas blocks for preventive maintenance,” Jones 100,000 tonnes of oil via Russia's Druzhba
purchases and other measures to better said at a press conference on 17 February. pipeline to Germany's PCK Schwedt
safeguard EU energy supply earlier this In 2022, BP carried out scheduled refinery after agreeing on commercial and
month. While spot gas prices have fallen maintenance work on the East Azeri legal terms with all parties involved, Reuters
over the past two months to levels not seen production platform at the ACG block and reported, citing sources familiar with the
since late 2021, there are fears that hot on the Shah Deniz Alpha platform at the talks.
weather this summer and a cold 2023-24 Shah Deniz field. The East Azeri platform The oil will mostly come from KMG's
winter could drive prices higher once more. was stopped for maintenance from June share in Karaсhaganak Petroleum
The front-month TTF contract is 13 for 15 days. As part of the preventive Operating (KPO). Rosneft Deutschland will
currently trading at around €50 per MWh, maintenance, necessary repairs were receive the oil, as Germany plans to change
or $570 per 1,000 cubic metres, which is carried out, the flare ignition system was its Energy Security Act to allow a quick sale
still several times higher than the historic modernised, the sources of radioisotopes of Rosneft's stake in the refinery without
average for this time of year. But only in were replaced, and an insulating gas prior nationalisation.
early December the price was three times transmitter and a launch module were The volume will help offset the halted
higher than that. Europe has benefitted installed. Russian oil imports to Germany via
from an unseasonably warm winter, and “The Shah Deniz Alpha platform at Druzhba sewen since January, which has
its high level of gas in storage – currently the Shah Deniz field was stopped for impacted the Schwedt and Leuna refineries'
at 64% of capacity – has eased fears of maintenance work on August 14 for a capacity utilisation, the report said.
shortages. period of 14 days. At the same time, While Kazakhstan initially planned to
At the end of January the EU appointed preventive work was also carried out at the begin oil exports to Germany in January,
gas capacity platform Prisma to calculate units built at the Sangachal terminal as part negotiations were postponed until legal and
countries’ collective demand for gas as part of Stage-1 of the development of the Shah commercial concerns could be addressed, it
of preparations for the launch of joint gas Deniz field,” Jones added. added.
purchases. Prisma will assess countries’ gas BP plans to drill the first production well
import needs and then seek offers from from the new Central East Azeri platform
suppliers to match those volumes. EU on the ACG block by the end of 2023. Jones Largest private Uzbek oil
countries are required to make sure their noted that the topsides of the CVA platform
respective gas companies participate, with would be sent to the sea by the middle producer SANEG raises output
the amount of gas to be jointly purchased to of this year, where assembly work will
be equivalent to 15% of the supply needed begin on their installation. The company despite heavily depleted fields
to fill countries’ storage facilities to 90% of then aims to complete drilling the first
capacity. production well by the end of this year, and Uzbekistan’s largest privately held oil
Some EU officials have noted that certain three wells will be drilled in total. producer Sanoat Energetika Guruhi
large energy companies are reluctant to take “Oil from three wells will be enough (SANEG) was able to raise its conventional
part, however, because they already have the to get the first production from the CVA oil production last year despite the heavily
clout to negotiate their own gas contracts platform in the first quarter of 2024,” Jones depleted status of its fields in the country,
at relatively affordable prices, and fear that said. Upstream reported on February 16.
Brussels’ scheme will fail to secure even ACG is currently the largest oil field in The energy journal took a look at
lower rates. Azerbaijan, providing two-thirds of the the company’s 2022 operational update.
country's oil production, and produced SANEG reported a 9% expansion in its oil
around 152mn barrels (20mn tonnes) of oil production to around 4mn barrels versus
BP will not stop production in 2022. The CVA project, which is the next 2021’s levels. The production level was
stage in the development of the ACG block,
achieved even though SANEG is operating
platforms at ACG and Shah Deniz aims to drill 48 wells to achieve daily peak dozens of oilfields with decreasing output
previously. They were previously operated
production of up to 100,000 barrels of oil
for maintenance in 2023 and 350,000 cubic feet of gas. The project by state-owned Uzbekneftegaz.
was signed in April 2019 and will cost
The increase was said to be mainly due to
BP, the operator of Azerbaijan's Azeri- $6bn, with about $3.2bn for construction the commissioning of 16 new development
Chirag-Guneshli (ACG) block and the costs and the rest for development costs, wells and the restarting of 59 idle wells. The
Shah Deniz field, said it will not shut including drilling new wells. idle wells went back into action after the
down production platforms for preventive completion of workovers performed with
maintenance in 2023, according to Harry modern recovery techniques.
Jones, BP President for Azerbaijan, Georgia, Kazakhstan reported as set to SANEG was also cited as saying that
and Turkey. Jones explained that the it employed other methods such as
company's preventive work on the platforms supply 100,000 tonnes of oil to sidetracking, changing over to mechanised
last year was successful, which led to no production technology and utilising
plans to stop production platforms this year. Germany via Russia’s Druzhba chemicals to stimulate flow rates at another
“The preventive work we carried out on 248 wells across the country. ™
the platforms last year was very successful.

P16 www. NEWSBASE .com Week 08 22•February•2023