Page 14 - FSUOGM Week 05 2022

FSUOGM NEWS IN BRIEF FSUOGM

[exists]," the statement said. Azerbaijan gas supply to provides for the supply by the end of 2024
The new agreement with JOGMEC (4Q21 – 2024) annually 3.5 bcm per year
was signed in accordance with the “Joint Turkey reached over 8 bcm from Shah Deniz Stage-1. Deliveries under
Research Agreement on Exploration the agreement began on October 1, 2021.
Operations at the Utalga Exploration Block” in 2021 Azerbaijan exported 11 bcm gas from the
concluded by SOCAR with this company on Shah Deniz field to Turkey in 2020 (an
October 28, 2019 and is part of an extensive Azerbaijan exported 8.72 bcm of gas increase of 20.5%).
co-operation project between the parties. to Turkey from the Shah Deniz field in The contract for the development of
The Japan National Oil, Gas and Metals January-November 2021, which is 22.7% the Shah Deniz field was signed in Baku on
Corporation (JOGMEC) was established in lower than in the same 11 months of 2020, June 4, 1996 and ratified by the parliament
February 2004 from the merger of the Japan according to data released by the Turkish on October 17 of the same year. The share
National Petroleum Corporation (JNOC) Energy Market Regulatory Council. of the parties in the contract is as follows:
and the Mining Agency of Japan (MMAJ). According to the council, the volume BP (operator, 29.99%), SOCAR (21.02%),
JOGMEC, on behalf of the state, provides of Azerbaijani gas supplies to Turkey LUKOIL (19.99%), NICO (10%), TPAO
technical and financial support to the oil amounted to 607.5 bcm in 10M21. At (19%).
and gas activities of Itochu, Inpex and other the same time, Azerbaijan accounted for
companies abroad." 12.03% of all gas supplies to Turkey in
November. Compared to November 2020, Azerbaijan cancels customs
the volume of exports decreased by 42.93%.
Nostrum reports revenue to fourth position in terms of gas supplies duty on imports of gasoline
In general, Azerbaijan moved from third
growth in 2021 despite to Turkey in November. In the first place The Cabinet of Ministers of Azerbaijan has
temporarily cancelled the rates of customs
was Russia, which accounted for 32.03% of
pandemic troubles all deliveries, in the second place the United duties on gasoline imported into the
States (16.5%), in the third place Iran
country, according to a decision taken on 29
Nostrum Oil & Gas on January 30 said its (15.77%). January.
revenue grew in 2021 despite challenges Azerbaijan took the first position in “By the decision of the Cabinet of
caused by the COVID-19 pandemic in terms of gas supplies to Turkey in March Ministers, from February 1, 2022, for a
Kazakhstan. Full-year revenue grew 11% 2020 and maintained its leadership until period until June 1, 2022, customs duties
y/y to GBP195mn ($261.37mn) as average July, and from August 2020 to March 2021 on the import of AI-95 and AI-92 motor
production in 2021 stood at 17,032 barrels it ranked second (after Russia), from April gasoline to Azerbaijan have been reduced
of oil equivalent per day, with average daily to June third, in July fourth, in August it from 15% to zero,” the government decree
sales of 15,330 boepd. again returned to third place and kept it says. Also, by a government decision, from
Nostrum's main producing asset is the until November. February 1 to June 1, excise duty rates on
Chinarevskoye field in Kazakhstan. The firm In general, in November 2021, gas gasoline imported into the country with a
holds a 100% interest in the project and exports to Turkey amounted to 5.48 bcm (a lead content of not more than 0.013 grams
operates the field. decrease of 2.02% compared to November per litre and an octane number of less than
Nostrum also confirmed that no 2020). At the same time, pipeline gas 95 and 92 were reduced from 200 manats to
employees were harmed in Kazakhstan accounted for 3.20 bcm (59.8% of all 1 manat per tonne.
during the early January civil unrest in deliveries, a decline of 29.6%), LNG 2.28 This related to SOCAR's plan to shut
the country, with operations continuing bcm (40.2% of all deliveries, an increase of down the Baku Oil Refinery (BOR) for
undisrupted. 2.4 times). In total, deliveries were carried scheduled repairs in the first half of 2022.
Nostrum had 268,000 barrels of out from 8 countries (Azerbaijan, Russia, The company said that the import of AI-92
condensate in its inventory at the end of the Iran by pipelines, to the USA, Algeria, motor gasoline for the period of shutdown
year, it said. Egypt, Trinidad and Tobago and Qatar of the BOR will depend on domestic
The company had cash in excess of (LNG). demand at that time for this oil product and
GBP165mn on December 31, up from Azerbaijani gas supplies to Turkey were on gasoline stocks.
GBP78.6mn at the end of 2020. carried out under contracts within the
Nostrum said was aiming to complete framework of Stage-1 and Stage-2 of the
the restructuring of its 2022 and 2025 senior development of the Shah Deniz field until Russia's Gazprom upgraded
debt notes by mid-2022. April 16, 2021. However, from April 16,
CEO Arfan Khan commented: "Despite the term of the contract with BOTAS for to Buy on rock bottom
continuing reservoir decline, we've the purchase and sale of gas under Stage-1
maintained strong cost discipline and have expired and supplies were carried out only market
optimised sales netbacks in a favourable under the contract under Stage-2. This
hydrocarbon pricing environment. We explains the overall decline in gas supplies The shares of Russian natural gas
will continue to sweat and monetise the to Turkey in the remainder of 2021 giant Gazprom have been upgraded from
Chinarevskoye asset in 2022 through a compared to a year earlier. Hold to Buy by VTB Capital (VTBC) as the
targeted workover programme to build on At the same time, the parties entered stock has underperformed peers by 2-16%
our cash reserves." into a new agreement on the sale and since the beginning of 4Q21 and is now
purchase – by the end of 2024 – of 11 bcm trading below the fair value estimated by
of natural gas through the Baku-Tbilisi- the analysts.
Erzurum pipeline in 3Q21. The agreement As followed by bne IntelliNews, as the

P14 www. NEWSBASE .com Week 05 02•February•2022