Page 14 - Euroil Week 43 2019

EurOil
NEWS IN BRIEF
EurOil
Bankers Petroleum denies
antitrust allegations in
Albania
The biggest oil producer in Albania, Chinese- owned Bankers Petroleum, has rejected the accusation that it abused its dominance on the oil market in the country or violated market rules following complaints from local refiners.
Albania’s Competition Authority announced on October 10 that it plans
to launch a six-month investigation into whether Bankers Petroleum has abused
its dominance in the oil production sector in the country after local refiners Tosk Energji and Al.Global Oil complained to the regulator.
“Bankers has never violated free market and competition rules and moreover has abused with any ‘dominant’ position,” Reuters reported on October 24, citing the company’s statement.
Tosk Energji and Al.Global Oil claimed that although Bankers Petroleum produces 97% of Albania’s crude oil it only supplied them with a small amount of the oil they needed.
The in-depth investigation will cover the period from January 1, 2016 to October 31, 2019, the regulator said.
Bankers Petroleum began exploration in Albania in 2004 and was bought from its Canadian owners by China’s Geo-Jade Petroleum Corp for CAD575mn (€400mn) in 2016.
bne IntelliNews, October 25 2019
IOG Greenlights UK Gas Project
UK-focused Independent Oil & Gas has reached a final investment decision (FID) at its southern North Sea gas project, it reported on October 28, while also closing a deal to farm out 50% stakes in all its assets except the Harvey field to CalEnergy Resources (CER). CER also has an option at Harvey.
IOG has also completed the purchase of the Thames reception facilities, which will handle gas from its fields. First production is expected in the summer of 2021.
IOG’s project holds 410bn cubic feet in 2P+2C gas reserves and resources across six fields. CER has paid the initial GBP40mn ($51mn) and will pay a further GBP60mn in
carrying costs to cover the project’s first phase.
October 28 2019
Equinor comes up dry in North Sea
Norway’s Equinor has drilled a dry wildcat well in the Norwegian North Sea, the Norwegian Petroleum Directorate (NPD) reported on October 29. The well was drilled 30 km southeast of the Troll field and 60 km northwest of Bergen. The water depth at the site is 292 metres.
Its primary target was to prove petroleum in Upper Jurassic reservoir rocks. Its secondary target was to prove gas in Middle and Lower Jurassic rocks, and evaluate whether the reservoir could be used to store CO2.
No traces of petroleum were found, and the well has been permanently plugged and abandoned. The West Hercules drilling facility used to complete the well will now drill a wildcat in the Norwegian Sea for DEA Norge.
October 29 2019
Turkey’s oil product imports up 12% y/y in August
Turkey’s oil product imports increased by 12% y/y to 4.2mn tonnes in August, a report by the energy market regulator BDDK has shown.
The country imported some 3mn tons of crude oil in the month, pointing to a strong 46.1% increase from a year ago.
Russia was the largest supplier in the month as Turkey purchased 1.1mn tonnes
of crude from suppliers in Russia. Iraq and Kazakhstan followed Russia with 1mn tonnes and 455,000 tonnes, respectively.
The data also showed that Turkey’s diesel oil purchases from other countries fell more than 27% y/y to 937,680 tonnes in August.
Last year, the country’s total oil product imports declined by 9.2% from 2017 to stand at 38.7mn tonnes, with crude oil imports falling 18.6% to 21mn tonnes.
bne IntelliNews, October 30 2019
OMV reports 6% decline in profits in Q3
Austria’s OMV reported a 6% fall in its current
cost of supplies (CCS) third-quarter net income to EUR593 ($659)mn, according to results published on October 30.
CCS upstream income came to EUR449mn, down from EUR554mn in the third quarter of 2018, with the decline owing to lower oil and gas prices. Production was up 18% at 480,000 barrels of oil equivalent per day.
bne IntelliNews, October 24 2019
OMV Petrom’s earnings
down in Q3 on unfavorable
oil price
The net profits of Romania’s main oil and
gas company OMV Petrom, part of Austrian group OMV, plunged by 43% y/y in Q3 to
a still robust RON758mn (€160mn), due to adverse oil prices and one-off items. The ytd earnings edged up by 3% y/y to RON 2.76bn.
The shares of the company, which has a market capitalisation of €5.1bn, dropped by 2% after the quarterly financial release.
OMV Petrom’s sales increased by 10% y/y to RON6.87bn in Q3 and by 13% y/y to RON18.2bn in January-September..
The company’s net earnings fell in Q3 due to unfavourable oil prices and special items mainly consisting of costs estimated for future soil remediation in relation to Arpechim refinery which was closed down in 2011.
The group’s operating results not including special items deteriorated by 27% y/y, to RON1.23bn in the third quarter. Special items comprised net charges of RON246mn, while inventory holding losses amounted to RON44mn.
bne IntelliNews, October 31 2019
Hungary expands Russian gas purchase by 22%
Hungary bought 9.3bn cubic metres of Russian gas between the start of the year and October 29, up 22% y/y, according to Gazprom.
Gazprom CEO Alexei Miller and Hungarian Foreign Minister Peter Szijjarto discussed the growth and other areas of gas co-operation in
a meeting, according to Gazprom. Hungary received 7.6 bcm of Russian gas last year, up from 7 bcm in 2017.
October 31 2019
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Week 43 31•October•2019