Page 17 - FSUOGM Week 23 2021

FSUOGM NEWS IN BRIEF FSUOGM

analyst at the Kyiv-based Concorde Capital The well averaged 1,248 barrels of oil between Hungary and Serbia is set to be
brokerage said in a research note. equivalent per day in the first ten days of completed in October.
testing since May 21 (with 777 boepd being The pipeline will connect Hungary to
oil) and then was shut in for a pressure Turk Stream pipeline. Hungary is also
Senators visit Kyiv, discuss build-up. Now the well has stabilised its looking to expand its energy mix by buying
output at 1,340 boepd (with 890 boepd
LNG from Croatia. State utility giant MVW
Russian aggression, Nord being oil), while the company stated that booked regasification capacity for 6.75bcm
of gas at the Krk terminal for a seven-year
further testing would determine its optimal
Stream 2 parameters to maximise oil recovery. period starting 2021.
“The well looks like a significant addition
Three US Senators met with President to JKX’s Ukrainian operations, where the
Volodymyr Zelenskiy of Ukraine and other company produced just 3,843 boepd of
members of the Ukrainian government on hydrocarbons in 1Q21. At least operation CENTRAL ASIA & SOUTH
June 2 in Kyiv. The senators, Jeanne Shaheen of this well will allow JKX to stabilise its
(D-NH), Robert Portman (R-OH) and Ukrainian output in 2Q21 vs the previous CAUCASUS
Christopher Murphy (D-CT), issued a joint quarter (after it reported five consecutive
release declaring that they were visiting to quarters of output decline). If the well Kazakhstan focused CPC
“show US solidarity with Ukraine against continues performing, it will allow the
Russian aggression … as well as encourage company to smoothen the total production may cut pipeline shipments
progress on democratic reforms.” The public decline rate in Ukraine this year from 25%
statement from Zelenskiy focused on the year on year (as we earlier estimated) to in 2021 by 7mn tonnes
assessment of the security situation along about 12% y/y. All in all, the news could
the border, especially in regard to Donbas, be welcomed by the stock market,” an The Caspian Pipeline Consortium (CPC)
and the possible completion and use of analyst at the Kyiv-based Concorde Capital may cut oil shipments to 60mn tonnes from
the Nord Stream 2 pipeline. Regarding the brokerage said in a research note. its previously planned 67mn tonnes due to
pipeline, Zelenskiy stated that if it is used OPEC+ restrictions, CEO of the oil pipeline
and Russia stops using the pipeline through operator Nikolai Gorban told TASS news
Ukraine, the loss of revenue would prevent Hungary agrees with agency on the sidelines of the St. Petersburg
Ukraine from funding its military. International Economic Forum.
“Compared to the visit of Secretary Gazprom on extending The cut would bring the possible oil
Blinken, this trip was rather low-key, even shipments via the CPC system to 10%
though Portman is the senior member of long-term gas delivery below the volumes planned for this year.
the Senate Foreign Relations Committee CPC pumped 59mn tonnes of oil in 2020,
and co-chair of the Senate Ukraine with Russia, seeks flexible 5mn tonnes below its initial target for that
Caucus, and as such has a more targeted year, due to an overall decline in global oil
vision of affairs in Ukraine. However, the pricing demand driven by the pandemic.
three senators’ trip is more regional in “Oil producers have requested shipment
nature, with stops in Lithuania to discuss Hungary and Russia have agreed to of 67mn tonnes of oil via the CPC system
Belarusian issues, and (for Shaheen and conclude a long-term agreement on the this year. Meanwhile, considering the
Portman) Georgia. It can be seen as delivery of natural gas from Russia to figures at the beginning of the year we will
assurance in the midst of some rather Hungary, Hungary’s foreign minister probably reach 60mn tonnes,” Gorban said.
severe sabre-rattling on the part of not only said after talks with Gazprom CEO CPC is a pipeline system that connects
Belarus but also Russia, which analysts Alexey Miller on the sidelines of the St Kazakhstan with a seaport in Russia’s
say has removed only about 10,000 of the Petersburg International Economic Forum. Novorossiysk area, where tankers are loaded
100,000 troops moved to Ukraine’s border A principle agreement had also been with oil for supply to global markets. The
during the spring. Also unlike Blinken’s reached on strategic cooperation on vaccine 1,511km-long pipeline links to oil fields in
visit, which had governance and corruption production. This means that Budapest West Kazakhstan Region. .
as a theme, the security emphasis made for could produce Sputnik V or other Russian
a calmer meeting,” an analyst at the Kyiv- vaccines at the future vaccination plant
based Concorde Capital brokerage said in a from 2022. Russia, Mongolia’s top
research note.. The long-term gas contract between
Hungary and Russia has been in place for diplomats discuss Soyuz
26 years but will expire in September. The
JKX reports testing well government intends to enter into a 15-year Vostok gas pipeline
contract with flexible pricing that would
IG149 exceeds expectations ensure the country’s long-term supplies. A working meeting between Alexey Miller,
chairman of the Gazprom management
Hungary covers 80-90% of its gas needs,
JKX Oil & Gas (JKX LN) reported on June some 9-10bncm from Russia, but has sought committee, and Battsetseg Batmunkh,
3 on the results of testing at its new well to lessen dependence by establishing two- Minister of Foreign Affairs of Mongolia,
IG149 in Ukraine, commenting that the way gas supply with all its neighbours. took place at the St Petersburg International
result “significantly exceeds expectations.” Construction on the last such facility Economic Forum 2021.

Week 23 09•June•2021 www. NEWSBASE .com P17