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Istanbul listed refiner unit, which will handle real estate planning, supply, Deputy Prime Minister and Minister
transactions and building management.
of Mining and Energy Zorana Mihajlovic
Tupras posts first annual ExxonMobil’s SSC in the capital employs stated on February 11.
Mihajlovic pointed out at the Seventh
more than 2,000 people who provide
loss in two decades accounting, customer support, tax and HR Ministerial Meeting of the Southern
Gas Corridor Advisory Council, held
services for the EMEA region and IT and
Istanbul-listed Tupras (TUPRS), Turkey’s upstream services globally. online this year, that Serbia is ready to
largest company by turnover, has posted a ExxonMobil Hungary, established in 2004, be an active participant in regional and
Turkish lira (TRY) 2.49bn ($335mn) net loss is one of the largest global business support international initiatives and projects
for 2020, the refiner’s first annual loss in more centres in Budapest, employing more than aimed at increasing energy security in the
than two decades, it said on February 11 in a 2,000. Last year it received the government’s Southeast Europe region, announced the
stock exchange filing. Excellence Award. government of Serbia on its website.
The loss was due to a 29% y/y decline in Hungary has become one of the leading She stated that Serbia, due to its
revenues to TRY63bn. As a result, the company’s international centres of business services in geographical position, has the potential to
gross profit declined 64% y/y to TRY2bn, some the Central and Eastern European region be not only an importer of natural gas, but
TRY619mn lower than its operating expenses. over the past decade. Companies in the also to actively contribute to the energy
The 15% y/y increase in net financial expenses sector employ 64,000 people. security of the region and participate in
to TRY3bn also contributed the loss. The SSC industry has seen more than 10% the regional energy market through the
Production was down 17% y/y to 23mn tonnes annual growth in the past decades. This year accelerated development of transport and
with sales falling 16% y/y to 25mn tonnes in 2020. the core business of some SSC was hit by the storage capacities.
In April, the company lowered its production virus, yet, in general, the majority of them “To achieve that goal, we plan to
expectation for 2020 from 28mn tonnes to 24mn are still growing, despite the crisis. connect the gas pipeline system of
and slashed its sales estimate from 29mn to 25mn. Serbia with all neighbouring countries
In October, Tupras again revised its production — Bulgaria, Romania, Croatia, North
target for 2020, taking it down to 22mn tonnes. It Greece-Bulgaria gas link to Macedonia, Bosnia and Montenegro,” said
adjusted its sales target to 23mn tonnes at the same the deputy prime minister.
time. be completed at end-2021 According to her, in that way, the
Also in October, Fitch Ratings downgraded delivery of natural gas from other
Tupras by one notch to B+/Negative, four notches The construction of the Gas Interconnector directions and from other suppliers
below investment grade and one notch below Greece-Bulgaria (ICGB) is expected to be would be enabled, as well as greater
Turkey’s sovereign rating. completed at the end of 2021, the company energy security and the possibility of
Moody’s Investors Service sees Tupras at B2/ managing the project said in a statement on faster economic development of the entire
Negative, five notches below investment grade, in February 12. region.
line with the sovereign rating of Turkey. The construction of the interconnector, As she emphasised, as of January 1,
The company is targeting 26-27mn tonnes of which will help Bulgaria to diversify natural Serbia has ensured the diversification of
production and sales for 2021. gas sources and reduce its dependence supply routes by putting the Balkan Stream
Tupras has an annual production capacity of on Russia, has been delayed by numerous gas pipeline into operation, and the next
30mn tonnes across its four refineries. objections in Bulgaria. step is the diversification of suppliers,
In December, the head of Tupras’ only local In May 2019, ICGB picked Greece’s J&P- which will guarantee energy security.
peer, STAR Refinery controlled by Azerbaijan’s Avax to build the gas link for €144.8mn, “The first project that will enable
SOCAR, Anar Mamadov, said that the refinery was while Corinth Pipeworks Industry was connection with other natural gas
aiming to increase its oil refining volume by 6% selected to supply line pipes worth €58.2mn. suppliers is the construction of the gas
y/y to 11mn tonnes in 2021 from 10.4mn tonnes In October, contracts were signed with J&P- interconnection Serbia-Bulgaria,” she
in 2020. Avax and Corinth Pipeworks Industry. said, adding that the planned capacity
Koc Holding, Turkey’s largest conglomerate, “Currently, the contract for production of the Nis-Dimitrovgrad gas pipeline is
controls 51% of Tupras via subsidiaries. The and delivery of line pipes for the purposes of 1.8bn cubic metres, and the value of the
remaining 49% is free-float. Turkey’s privatisation the project is fully completed. 160 km of the investment in Serbia is €85.5mn.
administration has one golden share. entire route have been cleared and there are Mihajlovic explained that plan is for
At end-2019, Norway’s wealth fund had a 1.02% over 130 km of stringing,” ICGB noted. the works to start this year and for the gas
stake in Tupras, down from 1.16% at end-2018. The interconnector will have a length pipeline to be operational by 2023.
In February and May 2020, respectively, of 182 km, of which 151 km will be on
BlackRock and Lazard Asset Management Bulgarian territory. Its capacity is planned
informed public disclosure platform KAP that their to be 3bn cubic metres. Bulgaria and Greece PGNiG expects 60mn cm
stakes in Tupras had fallen below the 5% threshold signed a delayed final investment decision
for disclosure. on building the interconnector in December worth of gas production
Tupras has a 40% stake in Opet, Turkey’s 2015.
second-largest fuel retailer. The interconnector is part of the Vertical from six new domestic wells
Gas Corridor (Greece – Bulgaria – Romania
– Hungary), providing access to natural gas Poland’s listed oil and gas exploration and
ExxonMobil expands shared from the Southern Gas Corridor and LNG production company PGNiG will produce
to Southeast and Central Europe as well as
60mn cubic metres (cm) of natural gas from
services centre in Budapest Ukraine. six new wells in the south-eastern part of the
country, the company said on February 11.

ExxonMobil is adding a unit to its shared The wells will draw gas from the
services centre in Budapest, the oil and gas Serbia aims to diversify gas Mirocin deposit, which earlier research
company announced on February 15. showed to have been 90% depleted. A
The company is expanding the SSC with Serbia’s strategic commitment is to diversify new analysis of the deposit revealed
an “Environmental and Property Solutions” the sources and directions of natural gas a previoulsy unexplored production

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