Page 9 - FSUOGM Week 03 2022

FSUOGM PERFORMANCE FSUOGM

Kazakh oil output rebounds

following unrest

KAZAKHSTAN OIL production in Kazakhstan rebounded analytics provider OilX said in an update on Jan-
at the end of last week and has now recov- uary 17.
OilX estimates that the ered to the level it was at prior to recent OilX estimates that the unrest led to a drop of
unrest led to a drop in unrest. 73,000 barrels per day in the OPEC+ member’s
oil output of 73,000 A hike in LPG prices led nationwide protests oil output. This represents a 4% decline for the
barrels per day. and violence to sweep across Kazakhstan in early country, which produced 1.72mn bpd of oil and
January, which was followed by a firm crack- other liquids in total.
down by Kazakh authorities, assisted by Russia. The unrest and ensuing crackdown led to
Output at the country’s largest oilfield Tengiz more than 160 deaths in Kazakhstan in a single
was affected by protests, operator Chevron has week.
confirmed, and national oil company (NOC) Tengiz produces over 700,000 bpd, and fur-
KazMunayGas (KMG) warned on January 11 ther growth is projected as its operating consor-
that it anticipated a slight decrease in its output tium continues work on an expansion project.
as a result of recent events. Kazakhstan’s other major source of oil is the
“Daily Kazakh oil production data suggests a Kashagan field, which is offshore and did not
sharp rebound in production on January 16, sug- report any disruptions in operations as a result
gesting that production has now fully recovered,” of protests and riots. ™

POLICY

Enwell share price stung

by price controls

UKRAINE SHARES in Ukrainian private gas producer Shares in Enwell were down 10% in early
Enwell slumped on January 17 after the company trading after the company made its announce-
The government confirmed it would be affected by gas price con- ment. CEO Sergii Glazunov commented that
has mandated that trols introduced by the government to protect he saw the regulations as “a very concerning
gas suppliers must key food industries. situation for independent gas producers in
sell up to 20% of The government has mandated that inde- Ukraine, and indeed for the investment scheme
their production at a pendent gas suppliers in Ukraine must sell up in Ukraine generally.”
regulated price. to 20% of their production until April 30 at a “However, we recognise the underlying social
price set according to the cost of sale plus a 24% issues that this scheme is intended to address,
margin and any production taxes. This gas will and will monitor its impact on the market and
be dispatched to select producers of “socially our business,” he said.
important food products” such as flour, milk, Enwell is a relatively small player in Ukraine’s
bread, eggs, chicken and sunflower oil to cut gas market, in control of four fields in the eastern
their costs. The hope is that these producers Dnipro-Donets basin. The company delivered a
can then sell their products more cheaply to the total of 4,917 barrels of oil equivalent per day
population. (boepd) in the first half of 2021. ™

Week 03 20•January•2022 www. NEWSBASE .com P9