Page 14 - FSUOGM Week 29 2022

FSUOGM NEWS IN BRIEF FSUOGM

not imported gas from Russia for over three energy prices. At the same time, non-oil regimes are rarely reliable partners and
years and its European friends will be short and gas revenues fell by 9%. that privileging short-term objectives at
of gas for themselves this winter. Analysts surveyed by RBC noted that the expense of human rights is a recipe for
On July 12, Naftogaz asked bondholders RosStat only accounts for the direct disaster.”
for a two-year payment freeze on $1.4bn of contribution of the oil and gas sector to
its bonds citing the need to preserve money the GDP. Should it account for the increase
to buy gas. However, bondholders were told in state, private and investment demand KNOC in process of
to reject this request by advisors from legal resulting from higher oil and gas revues,
firm Dechert. the figure could be even higher. selling 'ADA mine lot' in
Earlier this month, it was announced According to the Finance Ministry, in
that Ukraine will invest $500mn into 2021 the federal budget received RUB9 Kazakhstan
developing gas storage facilities as part trillion worth of oil and gas revenues,
of the Gas Storage Development Plan for or about 36% of all revenues. According Korea National Oil Corporation (KNOC) is
2022-2031. The project will allocate $277mn to RosStat, despite the sanctions for in the process of selling its “ADA mine lot”
to construct underground gas storage Russia’s military invasion of Ukraine, oil in Kazakhstan for the purpose of asset-
(UGS) facilities and $168mn will be used production grew in January-May 2022 by liability adjustment with talks under way
to develop infrastructure facilities and 3.4% y/y to 219.4mn tonnes. . with a preferred bidder and expected to be
reconstruct UGS technological equipment. wrapped up by October, Business Korea has
reported.
Human rights groups slam KNOC has owned 40% of the mine
Uzbekistan’s SEG ramps up EU deal for more Azerbaijani lot, located in Aktobe, since 2009. Other
investors include LX International.
oil output to 276,000 tonnes barrels per day (bpd) in 2014, but fell to
Production at the lot peaked at 3,927

One of Uzbekistan’s largest oil and gas gas 2,646 bpd in 2021, the report said.
companies, Sanoat Energetika Guruhi Human rights groups have criticised the Additional drilling and a reservoir
(SEG”), has increased its total oil EU deal with Azerbaijan to more than expansion are currently impossible at the lot
production in annual terms by 9% to double pipeline deliveries of Azerbaijani as the Kazakh government is strengthening
276,000 tonnes. gas by 2027 in order to help with Europe’s its environmental protection policies.
According to the company’s operational diversification away from Russian sources
update for its six-month average daily of energy.
production of hydrocarbons, as of July 1, EU officials have been attempting to Ukraine spent $3.3bn on oil
output stood at more than 1,700 tonnes, up quickly secure non-Russian gas supplies
16% y/y. amid fears the Kremlin may be poised to products in the first half of
Production of petroleum oil products completely shut down gas flows to Europe.
significantly increased, up to 21,871 The energy agreement is expected to help 2022
tonnes. bring about deeper cooperation between the
During the period, SEG concluded new EU and Azerbaijan on trade, aviation and Ukraine spent $3.3bn on oil products in
offtake contracts, both domestically in the development of Baku port. the first six months of the year, Ukraine
Uzbekistan, and in seven foreign markets Human Rights Watch said the EU should Business News reported on July 18.
– including three in Europe (Poland, not have signed the memorandum on gas The cost is 56.3% higher than the same
Germany and the UK) and two in Central deliveries with Azerbaijan and should period in 2021. However, the physical
Asia (Kazakhstan and Tajikistan). not enter into a proposed new bilateral volume of imports has decreased by 14.7%
agreement without first insisting on to 3.2mn tonnes, according to the State
political reforms. The group runs campaigns Customs Service.
Oil and gas sector demanding the release of scores of political $753.6mn (23.11%), Russia at $569.6mn
The top countries were Belarus at
prisoners and changes to laws that heavily
generates 22% of Russia’s restrict non-governmental organisations (17.47%) and India at $283.6mn (8.7%).
Other countries made up $1.7bn (50.72%).
and the media in the South Caucasus
GDP in 1Q22 country. partly exacerbated by an impending fuel
Ukraine’s oil exports dropped by 78%,
Azerbaijan uses oil and gas “to silence
The share of oil and gas sector in Russian the EU on fundamental rights issues”, said crisis this heating season. Ukraine banned
GDP reached 21.7% in 1Q22, up by Philippe Dam, acting EU director at Human the export of fuel, oil, gas and coal last
4.4 percentage points year on year and Rights Watch. “The reality is that Azerbaijan month, instead saving them for domestic
achieving the highest value since 2017, authorities have been famous for cracking use to prepare for the winter period.
RBC business portal reported citing data down on civil society activists investigating Ukrainian President Volodymyr
from RosStat statistics agency. The gross corruption, especially when it comes to oil Zelenskiy also urged the government and
value added of the oil and gas sector in and gas.” local authorities to keep the cost of utilities
1Q22 increased by 20.4% year on year. Eve Geddie, director of Amnesty down to pre-war levels to help citizens
In line with the previous reports by bne International’s Brussels office, said: “Russia’s financially affected by the war during
IntelliNews, the oil and gas revenues in aggression against Ukraine serves as a winter..
2Q22 rose by 58% y/y on the back of high reminder that repressive and unaccountable

P14 www. NEWSBASE .com Week 29 20•July•2022