Page 14 - FSUOGM Week 45 2019

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downstream margins.
MOL announced on Monday that it agreed
to acquire a 9.57% stake in the Azeri-Chirag- Gunashli oil field in the Caspian Sea, one of the largest offshore oil fields in the world, and an 8.9% stake in the pipeline that transports the crude to a port on the Mediterranean
Sea. MOL will pay Chevron $1.57bn for the assets, with the sale due to close in the second quarter of 2020 once it is cleared by regulators. This was the largest investment carried out by a Hungarian company abroad.
Investors were told that Ebidta is expected to gradually approach $3bn by 2023 as
all three business segments, (upstream, downstream and consumer) visibly increase their contribution.
Upstream production guidance was raised to 120,000-130,000 barrels of oil equivalent per day for 2020-2023 and the annual simplified free cash flow target was increased to $700mn from over $500mm.
Downstream will continue to execute
its strategic growth projects and deliver
net efficiency gains by 2023, while increasingly focusing on decarbonisation and sustainability, MOL said.
The Ebitda target for MOL’s consumer services business was raised from $500mn to $600mn by 2023, while the share of non-fuel margin is expected to rise close to 35% in the same period.
bne IntelliNews, November 7 2019
Kazakh authorities say
Tengiz expansion cost too
high
Energy Minister Kanat Bozumbayev said on November 6 that Kazakh authorities believe an increased cost estimate for the Tengiz oilfield expansion is too high and want it reviewed by Chevron and ExxonMobil, Energy Minister Kanat Bozumbayev said on November 6.
Chevron said last week that cost overruns would expand the project expenses by 25% to $45.2bn, blaming the situation on a one-year delay and rising construction and equipment costs. These additional expenses would drain the Kazakh share of profits. Giant projects such as Tengiz, Kashagan and Karachaganak have been a source of tensions for Kazakhstan with foreign partners. The expansion of Tengiz is aimed at increasing the field’s output to 41mn tonnes per annum by 2025-2026 from its current level of 29mn tonnes a year.
“Generally, we told them that in our opinion the sum is too high,” Bozumbayev told reporters. “This means poor
planning.”
He added that Chevron and ExxonMobil
have sent experts to Kazakhstan to review the project, noting that it’s too early to talk about the figures
bne IntelliNews, November 7 2019
Oil Rocks supplies 70% of SOCAR output
The offshore Oil Rocks oil and gas project in Azerbaijan currently accounts for
70% of national oil company SOCAR’s production, a company spokesman told local media on November 7.
The fields produced 790,000 tonnes of oil and 72mn cubic metres of gas between January and September, the company spokesman said. Production has risen in recent years thanks to new investments.
November 7 2019
Kazakhstan ups oil output forecast for 2019
Kazakhstan’s Energy Ministry has
raised its oil output forecast for 2019 to 90.5mn tonnes from 89mn tonnes, the ministry said on November 11. The rise
in the forecast follows the completion of maintenance works at Kazakhstan’s three biggest oil fields, which are reportedly running at near full capacity. Kazakhstan’s daily oil production hit an all-time high
of 269,000 tonnes (2.05mn barrels) on October 24, far in excess of what the Central Asian nation pledged to produce under the OPEC+ quota it agreed to uphold to avoid a global glut until the end of March 2020. The giant Kashagan field’s production target has been boosted by 1mn tonnes to 14.5mn, the ministry said in a statement. The three big projects account for 60% of Kazakhstan’s total oil output.
bne IntelliNews, November 12 2019
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Week 45 13•November•2019