Page 10 - Euroil Week 38 2019

EurOil POLICY EurOil
Turkey warns Cyprus over upstream deals
TURKEY
Cyprus signed offshore exploration deals earlier this month with Total and Eni.
THE Turkish Foreign Ministry on September 19 castigated the Greek Cypriot government for signing agreements with international oil com- panies for offshore hydrocarbon exploration in “so-called licence area number 7”, the Anadolu Agency state news service reported.
“We repeat our strong warning that the uni- lateral acts of GCA [Greek Cypriot Administra- tion], which aim at usurping the rights of the Turkish Cypriots, do not contribute to peace and stability in the Eastern Mediterranean,” Hami Aksoy, spokesman for the ministry, was cited as saying in a statement.
He referred to reports of GCA deals with France’s Total and Italy’s ENI for exploration in part of what Cyprus deems its exclusive economic zone (EEZ). Turkey has sent its own drilling ships, accompanied by warships, to drill in the EEZ, saying discovered deposits must be shared with the Turkish Cypriots and Turks, who run an internationally unrecognised
breakaway state in the north of the island of Cyprus.
“As repeatedly underlined and shared with the international community, a section of the so-called licence area number 7 remains within the Turkish continental shelf, which has been registered with the United Nations,” the Turkish official added.
The Turkish Cypriots’ proposal for an equita- ble allocation of hydrocarbon natural resources around Cyprus remained on the table, Aksoy also said.
“We once more advise the interested com- panies against any hydrocarbon activities to be attempted within the Turkish continental shelf, trusting null and void licences issued by the GCA,” he added.
Both the US and the EU, of which Cyprus is a member state, have warned Turkey not to conduct hydrocarbon exploration in the Greek Cypriot EEZ. ™
PROJECTS & COMPANIES
Romania eyes LNG via Poland
ROMANIA
Romania may be preparing contingency plans.
ROMANIA has voiced interest in acquiring gas from Poland’s Swinoujscie LNG import termi- nal, its energy ministry reported on Septem- ber 19. The move comes after Ukraine recently expressed its intent to take extra US LNG sup- plies from the terminal.
In a statement, the ministry announced sign- ing a memorandum of understanding (MoU) with its Polish counterpart on greater energy sector co-operation between the pair. The accord was agreed during intergovernmental talks.
The Romanian side said co-operation would help both countries ensure their energy security and diversify energy supply.
“The Romanian side reiterated its interest in identifying the best technical solutions for pro- viding the Romanian market with the volumes of gas that will be available via the Polish Swinou- jscieterminal,”theministrystated.
The Swinoujscie facility is capable of import- ing up to 5bn cubic metres of gas per year. After its launch in December 2015, the plant initially struggled with low utilisation, although its import volumes have been steadily rising.
Its state-owned operator PGNiG wants to not only ensure its current capacity is fully booked,
but secure enough customers to underpin an expansion to 7.5 bcm per year. As part of this effort, it has looked to resell LNG it receives to other countries.
PGNiG recently announced it had agreed to resell a batch of US LNG to a US trader working in Ukraine. The batch is due to arrive at Swinou- jscie in early November and has been reserved for US investment firm Energy Resources of Ukraine (ERU).
PGNiG started exporting gas to Ukraine in August 2016, helping the latter country forgo direct gas purchases from Russia. The compa- ny’s executives have complained that the only thing preventing an increase in supplies is capacity restrictions at Ukraine and Poland’s shared border. The Silesia–Podkarpacie pipe- line between the two neighbours is due to be enlarged in 2021.
Romania’s interest in Polish-acquired LNG is interesting, as the country is preparing to become a net exporter of gas within the next few years. It may be looking to safeguard against any disruption in its Russian imports, if Russia and Ukraine are unable to reach a contract for transit starting next year.™
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w w w . N E W S B A S E . c o m Week 38 26•September•2019