Page 14 - FSUOGM Week 46 2021

FSUOGM NEWS IN BRIEF FSUOGM

dollar-denominated 10-year Eurobonds, transit country, disrupted gas supply to the
with the demand exceeding $2.8bn and the West.
coupon rate set at 3.5% versus the initially The EU Economy Commissioner
guided 3.875%. Paolo Gentiloni said on November 11 CENTRAL ASIA & SOUTH
BCS Global Markets analysts previously that the bloc “will not be intimidated by
estimated the fair yield of the reporting Lukashenko’s threats”. CAUCASUS
new GAZPRU 28EUR issue at 1.85-1.95% Over 4 200 irregular migrants have
or about 60-70 basis points (bp) spread to crossed from Belarus into Lithuania, the Georgian oil development in
sovereign yield curve. EU’s easternmost point, this year.
"The longest outstanding note GAZPRU Black Sea to begin in May
27EUR (YTM 1.51%) trades with a
50bp premium to the sovereign EUR- Moldova’s government to 2022
denominated curve," BCS GM analysts
reminded. Gazprom’s €-denominated cover part of households’ The Georgian Oil and Gas
notes are trading with premiums to the Agency announced on November 13 that
comparable issues of CEPSA (Baa3/BBB-/ gas and heating bills oil development off the country’s Black Sea
BBB-), a state-owned vertically integrated coast will begin in May 2022.
oil and gas company in Spain. Moldova’s government will extend monthly The work will be carried out by OMV
Gazprom continues to recover from the subsidies to cover 50% to 66% of the Petrom S.A., a Romanian/Austrian
2020 crisis. In 1H21, its revenue jumped natural gas bill, depending on individual exploration firm. The contract will last 25
42% year on year to $59bn mainly thanks consumption, for the first 150 cubic metres years and includes an area of 5,283 km2 for
to the 20% y/y higher gas sales to Europe burned by households in Moldova, Prime exploration.
and almost two-fold increase in average gas Minister Natalia Gavrilita announced, Georgia’s economy minister Natia
prices ($208 per mcm as of 1H21). quoted by Mold-Street.com. Turnava expressed hopes in February that the
The government also said that it would firm will be able to find significant deposits as
cover two-thirds of the increase in the price they did off Romania’s Black Sea coast in 2012.
of district heating. Georgia is the last country in the Black Sea
EASTERN EUROPE The natural gas company Moldovagaz basin to begin oil and gas exploration works.
previously hiked the natural gas price by
Belarus’s Lukashenko 2.3 times from MDL4.6 (€0.23) to MDL11.1 Lukoil joins SWAP project
(€0.55) per cubic metre, 8% VAT included.
menaces EU with gas cut- the hike subject to the final decision at the in Azerbaijani sector of
The market regulator ANRE approved
off amid border flare-ups end of the month.
Moldovagaz representatives said that
Belarusian ruler Alexander Lukashenko the current high prices may remain in Caspian
suggested on November 11 that he could force for at least six months. The current Lukoil has undertaken to drill a well as part
shut down the natural gas transit to Europe price includes the financial corrections of the Shallow Water Absheron Peninsula
via Belarus in retaliation against any new accumulated during September and (SWAP) project in the Azerbaijani sector of
European Union sanctions imposed over October, when Moldovagaz paid very high the Caspian Sea. "We have already entered
his handling of migrants on the border spot prices of $790 per 1,000 cubic metres, the project and undertook to finance
with Poland and Lithuania. compared to $430 paid after November 1 the next well," Lukoil President Vahid
The EU has accused Belarus of under the long-term contract signed with Alakbarov told reporters on the sidelines
mounting a “hybrid attack” on the bloc the Russian supplier, explained Moldovagaz of the ADIPEC oil and gas exhibition
by organising irregular migration and general manager Vadim Ceban. according to Interfax Azerbaijan.
encouraging thousands of people to cross For the first 50 cubic metres per month, Lukoil signed an agreement to acquire a
into Poland and Lithuania. the government will cover 66% of the rise 25% stake in BP's Shallow Water Absheron
Lukashenko has dismissed the announced by Moldovagaz. Namely, the Peninsula (SWAP) exploration project in
allegations, and said that he could cut the household will pay a price of MDL6.8 per the Azerbaijani sector of the Caspian Sea
Yamal gas pipeline that carries Russian gas cubic metre. For the next 100 cubic metres, on September 28. Upon completion of the
across Belarus to Poland and Germany in the government will cover only 50% of the transaction, BP will remain the operator
response to any EU sanctions. price increase, namely the households will of the project with a 25% stake. The third
"We are heating Europe, and they are pay MDL7.9 per cubic metre. participant in the project is SOCAR with a
still threatening us that they will close Therefore, for the first 50 cubic metres, 50% share.
the border. And if we shut off natural gas the price will increase by 47%, for the The contract area extends along the
there?" the Belarusian state news agency next 100 cubic metres by 70% and the Caspian Basin to the south of the Absheron
BelTa quoted Lukashenko as saying. households using more than 150 cubic Peninsula. The PSA for joint exploration
"Therefore, I would recommend that the metres per month will pay (for the amounts and development of the offshore block
Polish leadership, Lithuanians, and other used above the 150 cubic metres threshold) was signed between BP and SOCAR in
headless people think before speaking," he prices that are 139% higher than previously. December 2014.
added. Assuming an average 60% rise in the A 3D seismic survey programme was
Although there was no immediate natural gas price, this will result in an implemented in the contract area in
response from Russia, Moscow reacted impact of 1.1pp to the overall consumer 2016. Following the completion of the
angrily in the past when Ukraine, another price inflation (8.8% in October). processing and interpretation of the 3D

P14 www. NEWSBASE .com Week 46 17•November•2021