Page 16 - FSUOGM Week 35 2022

FSUOGM NEWS IN BRIEF FSUOGM

Naftogaz to pay 2024 operations declined to KZT156bn in the the latest monthly report of the country’s
period, compared with KZT384bn in the
energy watchdog EPDK.
eurobonds in 2026 same period last year. 4.9% to 4.19mn tonnes, with crude oil
Oil and oil product imports moved up
KMG’s share in the pre-tax income of
Naftogaz, Ukraine’s national gas company, over 12 non-operated oil and gas firms accounting for 3.17mn tonnes, up by 11%.
will repay its 2024 eurobonds in 2026 in which the state-run oil producer holds The majority of Turkey’s oil and oil product
after the bondholders agreed to delay the minority stakes, jumped to KZT644bn in needs were met by Iraq with 1.42mn tonnes.
payment for two years, Ukraine Business the period, against KZT324bn recorded in Russia and Kazakhstan exported 1.34mn
News reported on September 1. the first half of last year. tonnes and 319,847 tonnes, respectively.
In July, Naftogaz asked bondholders for Foreign-led giant oil fields Tengiz and Turkey lately released data that
a two-year payment freeze on $1.4bn of its Kashagan added KZT500bn to KMG’s controversially showed Russia’s oil exports
bonds, including a $335mn 2022 eurobond revenue in the first half of this year, against to the Turkish market doubling, at the same
coupon payment due on July 19, in order KZT230bn in the same period of 2021.. time as Europe is trying to squeeze Russian
to preserve money to buy gas. Several oil sales in response to Moscow’s invasion of
meetings have taken place with bondholders Ukraine.
to reach an agreement. Kazakhstan says it wants Also in June, Turkey’s oil refinery
According to the company, 77% of product exports increased by 14.7% y/y to
investors voted "yes" in the latest meeting to ship excess oil volumes 1.16mn tonnes, while output rose by 5.3%
and agreed to a proposal to postpone y/y to 3.34mn tonnes, EPDK said. Total
payments for 2 years – identical to the via Azerbaijan domestic oil product sales expanded 15.2%
proposal previously agreed by Ukrainian y/y to 2.32mn tonnes.
eurobond holders. Naftogaz will pay off Kazakhstan plans to ship “excess oil volumes” The watchdog said that, year on year,
the €600mn debt in 2026 and will start through Azerbaijan, Kazakh Minister of June gas imports were down by 5.6% to
paying interest on it in 2024. The amount Energy Bolat Akchulakov said during an around 3.84bn cubic metres (bcm), from
of interest deferred during 2022-2024 is online briefing. approximately 4.06 bcm in June 2021.
€90mn (€45mn per year), the company According to the minister, Bolat The country imported 3.27 bcm of
stated. Akchulakov, oil output would be increased in natural gas via pipelines. Also purchased
However, holders of the 2026 eurobonds the next two years by expanding the country’s were 561.8mn cubic metres (mcm)
did not make an agreement with Naftogaz. main fields while establishing new smaller of liquefied natural gas (LNG). These
The company will turn to the CMU with fields. shipments marked a decrease of 13.5% in
a proposal to develop a joint position Kazakhstan is anticipating that its oil pipeline imports and increase of 102% in
regarding further actions to restructure the output this year will exceed the initially LNG shipments.
company's eurobonds. planned 85.7mn tonnes to reach 103-107mn Russia supplied the majority of Turkey’s
Bondholders initially rejected Naftogaz’s tonnes, leading to volumes that are much gas imports, at 1.69 bcm. Iran and
proposals as advisors from Dechert viewed higher than those the country can ship today. Azerbaijan followed with 855 mcm and
Naftogaz as a profitable concern, having The matter could be related to continuous 729.4 mcm, respectively.
the cash on its balance sheet to meet its issues with the CPC pipeline, which ships But gas imports from Russia and Iran
obligations. most of Kazakhstan’s oil. The pipeline runs to fell by 29.5% and 1.4%, respectively, while
The government ordered Naftogaz to a terminal on the Black Sea coast at Russia’s imports from Azerbaijan expanded by
delay the payments; however, this surprised Novorossiysk port. 39.6%, EPDK said.
chief executive officer Yuriy Vitrenko, The ministry is exploring alternative routes Turkish gas consumption in June
who told Bloomberg that the order was for shipping excess volumes of oil, including dropped by 21.2% to approximately 3.05
unexpected, as the company had enough routes through Azerbaijan and Iran. bcm. Household consumption grew by 3.7%
money to redeem eurobonds and buy gas. “It has been said numerous times that to 400.1 mcm. Gas usage in power plants
Azerbaijan and Iran can act as our partners in shrank by 43.9% to 948.4 mcm.
alternate Caspian Sea shipments. In the case The natural gas volume in storage, said EPDK,
KMG reports increase in of Iran, the country is subject to continuous in June move up by 4.5% to around 2.72 bcm.
sanctions. Therefore, this case is rather
revenues for 1H22 suggestive, but we nevertheless consider it.
Shipping some oil through the Caspian Sea to
Kazakh state-run oil and gas producer Azerbaijan is a technical issue. This case is not Tatneft oil major posts $2bn
KazMunayGas (KMG) has reported an so much about huge volumes but more about profit in 2Q22, transparency
increase in revenues for the first half of some of the excess quantities that we may
2022. have,” said Akchulakov. welcomed
Revenues grew despite the declining The minister stressed that Kazakhstan’s
profitability of its directly owned and assets, goal is the steady and ongoing functioning of Russian regional oil major Tatneft of
including onshore oil fields in Kazakhstan’s the CPC pipeline. Tatarstan Republic posted IFRS results for
Mangistau Region. 1H22, showing $10bn of revenues, $3.5bn of
KMG reported a 55% growth in revenues EBITDA and $2bn net profit for the period.
to KZT4.2 trillion ($9bn) in January-June Turkey reports higher oil but The company was the first Russian oil major
2022 against KZT2.7 trillion in the same to post 2Q22/1H22 IFRS results.
period last year. lower gas imports in June Tatneft was also the first company in
KMG’s other business segments the oil and gas sector to announce a post-
include pipeline transportation, refining Turkey’s oil and oil product imports moved Ukraine invasion dividend.
and marketing of oil and oil products. up while natural gas imports declined in As covered by bne IntelliNews, as the
Combined net income from these June on a year on year basis, according to fallout from Russia’s military invasion

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