Page 17 - FSUOGM Week 08 2021

FSUOGM NEWS IN BRIEF FSUOGM

The US may be prepared to enter talks CENTRAL ASIA & SOUTH in 2043.
with Germany on easing its sanctions on Other Lukoil milestones in Uzbekistan
Nord Stream 2, German business paper CAUCASUS include:
Handelsblatt said earlier this month, • In 2011, Lukoil Uzbekistan Operating
signalling that Biden's administration may Lukoil ‘demonstrates worth Company produced its 10-billionth cubic
have resigned itself to the fact that the metre of gas in the country. Five years later,
Russian pipeline will be completed. to Uzbekistan as it takes in 2015, it announced the 30-billionth.
Reportedly, the coalition of Chancellor • In September 2017, Lukoil successfully
Angela Merkel is working on a proposal that on hard to recover gas launched the main production and
will attempt to soften Russia’s influence over technological facilities of the South-West
the European energy market, addressing challenge’ Gissar project. Among the commissioned
some of the US’ concerns about the project, facilities were a complex gas treatment plant
Bloomberg wrote.. Russia’s Lukoil, the sixth largest taxpayer in with a nominal capacity of 4.4bn cubic
Uzbekistan with deductions at around $1bn metres per year, a gas pretreatment plant and
per annum, is said to be suffering shrinking four gas collection points.
Ukraine’s acting energy profitability as the Central Asian country commissioned the first line of the Kandym
• In November 2017, Lukoil
is currently developing hard-to-recover gas
minister suggests cabinet reserves. Gas Processing Plant (GPP) five months
Independent analyst Igor Tsoy told
ahead of schedule. It has a processing
should replace Naftogaz bne IntelliNews that the Russian giant capacity of 4.05bn cubic metres of gas per
year. The company also completed work on
was presently addressing several tough
supervisory board technological issues, but that the very fact the construction of a pre-factory zone, a road
system, external power and water supply
that it was demonstrated its longer term
Acting Energy Minister Yuriy Vitrenko value to Uzbekistan as it can showcase facilities, a collection system and an export
sent a letter on February 12 to PM Denys its wealth of experience and innovative gas pipeline.
Shmyhal suggesting the replacement of the technologies. • In March 2018, Lukoil commissioned its
supervisory board and top management of Said Tsoy: “On March 5, 2020, at a first petrol station in Uzbekistan; in 2020 the
Naftogaz (NAFTO) should be immediately meeting between the Uzbek President petrol station won an award recognising it as
considered, lb.ua news site reported on Shavkat Mirziyoyev and Lukoil CEO Vagit the best in Tashkent.
February 15. Alekperov, the parties expressed the desire Uztransgas said the extraction,
Vitrenko motivates the need for to further deepen cooperation in the field purification and processing of natural gas is a
replacement by weak natural gas production of geological exploration and development complex, expensive and high-tech process.
numbers of Naftogaz (14.9bn cubic metres of new hydrocarbon deposits. In June “The final product processed by
in 2020, short of the plan of 20.1 bcm 2020 Lukoil and Uzbekneftegaz inked a Lukoil meets the highest standards and
stipulated by the Cabinet in 2017), its plan memorandum on joint exploration and is in demand on international markets.
to further decrease gas production (to production of oil and gas in the territory of In addition, Lukoil is one of the largest
9.9-12.5 bcm by 2025) as well as alleged the country. taxpayers in the country. It pays taxes on its
financial violations revealed by the State “Lukoil has innovative technologies profits, taxes for the use of mineral resources
Audit Service for UAH75.5bn ($2.71bn) and for exploration drilling. In the long term, and other mandatory payments to the state
tax authorities for UAH37.3bn. cooperation with Lukoil will be of strategic treasury”, Uztransgas said.
According to Naftogaz's charter, the importance for the development of the Lukoil’s website states that it employs
company’s supervisory board can be country's oil and gas industry”. more than 2,700 people in Uzbekistan, of
replaced any time by a shareholder meeting Last year marked 15 years since Lukoil whom more than 92% are Uzbek citizens.
(where the Cabinet is the only shareholder). began operations on the Uzbek market. Lukoil Uzbekistan Operating Company
Members of the company’s management Its total investment across all projects in can also boast that it has several times
board are appointed and dismissed by the the country today stands at around $8bn. received "The Best Employer in Uzbekistan"
supervisory board; its CEO is appointed and The company produced its first gas at the and "Most Desirable Employer in the
dismissed by a shareholder meeting upon Hauzak-Shady section of the Dengizkul field country" awards. .
suggestions of the supervisory board. in 2007.
Recall, Vitrenko served in top positions Deputy Energy Minister Behzot
at Naftogaz since 2014, where he was Normatov in November last year said that Gas rich Azerbaijan’s
associated with leading successful court Uzbekistan was now working with Lukoil
battles with Gazprom. In late 2019, he on the basis of a public-private partnership foreign trade surplus
lost some areas under his control within (PPP) under a production sharing agreement
Naftogaz and started actively criticising top (PSA). $837mn in Jan
management, which eventually led to his "Eighty percent to eighty five percent of
dismissal in July 2020. In late December, the money received by the enterprise remains Azerbaijan’s foreign trade surplus amounted
the Cabinet appointed Vitrenko as acting with the state. To date, the state's revenue to $836.5mn and trade turnover hit $2.4bn
energy minister. from Lukoil projects has exceeded $4bn, and in January, the country’s State Customs
“Poor natural gas production is indeed a Lukoil has earned a little more than $1bn in Committee has reported.
weak point of Naftogaz, while the company the country by selling gas to Uzbekistan. At Azerbaijan’s foreign trade surplus
has always been referring to objective the same time, the company invested $7bn… amounted to $836.5mn and trade turnover
reasons for that (it was not able to acquire becoming one of the largest investors in the hit $2.4bn in January, the country’s State
new gas production licences),” an analyst at country," he said. Customs Committee has reported.
the Kyiv-based Concorde Capital brokerage The PSA with Lukoil on the Kandym-
said in a research note.. Khauzak-Shady project is in effect until 2046,
with the term on the Gissar project ending

Week 08 24•February•2021 www. NEWSBASE .com P17