Page 14 - FSUOGM Week 12 2022

FSUOGM PROJECTS & COMPANIES FSUOGM

OMV, Wintershall Dea unable to extract

profit from Russian gas project

RUSSIA GERMANY’S Wintershall Dea and Austria’s Wintershall Dea also has interests in Gazprom’s
OMV are unable to extract some RUB42bn Achimov blocks at the Urengoi gas field in West-
The two companies ($390mn) in profit earned at Gazprom’s Yuzh- ern Siberia.
have been hard hit from no-Russkoye gas field in Western Siberia because OMV is less exposed, although it still nets
the fallout from Russia's of Western sanctions, Interfax reported on some 100,000 barrels of oil equivalent per day
invasion. March 22. (boepd) of output from Yuzhno-Russkoye.
While Gazprom and its subsidiaries hold Both companies have said they will not invest
a 50% stake in the field, launched in 2007 further in Russia in light of what has happened
and boasting a production capacity of 25bn in Ukraine. But at the same time, they have not
cubic metres per year, Wintershall Dea and committed to leaving the country altogether.
OMV each have 25% shares. Interfax esti- Defending this position, Wintershall Dea has
mates that Wintershall Dea was entitled to stressed that Yuzhno-Russkoye is a major sup-
RUB23.3bn in profit and OMV a further plier of gas to the European market. OMV has
RUB18bn in 2021. Sanctions that have been meanwhile axed a deal to buy into the Achimov
slapped on Gazprom mean they cannot blocks where Wintershall Dea already works,
access these funds. although the transaction was already years
The two companies have been hard hit from behind schedule.
the fallout from Russia’s invasion of Ukraine, The pair also provided loans to Gazprom’s
as the former country represents significant Nord Stream 2 pipeline, the fate of which is now
portions of their business. Wintershall Dea has up in the air after Germany’s government halted
essentially been cut off from a business that the certification process necessary for its launch.
generates around a fifth of its pre-tax profit. The companies have written these loans off as
In addition to its stake in Yuzhno-Russkoye, impairments. ™

NEWS IN BRIEF

Moldova likely to pay 30% during the “cold season”. The purchase India said to buy more
price for February was $563 per 1,000 cubic
Gazprom much higher price metres or $83 less compared to January. discounted Russian oil
The effect of the high price charged
in April by Gazprom starting April, confirmed by be renewed, Iran has announced tenders for
In anticipation that the nuclear deal will
Deputy Prime Minister Andrei Spinu, will,
The price paid by Moldova to Gazprom however, be significantly diminished for gas liquefaction (LNG) projects, SHANA
for the natural gas delivered in April may households due to the smaller volumes reported.
reach $1,000 per thousand cubic metres — needed as the weather is getting warmer. State-owned National Iranian Oil Co.
far above the record $790 price paid last However, when it comes to the economy, (NIOC) announced that it is accepting bids
October and nearly twice the price paid April will bring major pressures and for the construction of small LNG terminals
more recently, the head of Moldovagaz, many companies may have to suspend until April without specifying the size,
Vadim Ceban, has announced. production. location or construction time needed for
This comes on top of the uncertain The industrial production prices the projects.
continuation of deliveries after May 1, the (factory-gate prices) already surged by “Iran is resuming efforts to export LNG
deadline for the settlement of the historic 19.3% y/y as of February, the statistics as Europe tries to reduce dependence on
debt issue. Ceban has formally asked bureau announced. Russia, and negotiations are underway to
the company’s shareholders, including The economy performed unexpectedly lift sanctions on the country. The previous
Gazprom, to accept an extension of 10-12 well until the last quarter of last year, eight Iranian LNG projects have stalled
months to carry out the audit on the debt but there are no grounds to expect due to restrictions and lack of capital,
but it is uncertain whether the Russian similar performance in 2022. In fact, the including partnerships with France's
company will agree. government slashed the forecast for the Total and Russia's Gazprom," Bloomberg
The sharp increase in April, from $547 economic growth this year to just 0.3%. correspondent Stephen Stapczynski tweeted
paid in March, is due to the change in The projection may be further revised on March 15.
the calculation formula. Namely, during downward as the effects of a prolonged war Iran has three large LNG projects: South
the “warm season” that starts in April, in Ukraine are factored in. Pars LNG with a capacity of 10mn tonnes
the weight of the spot gas price in the per year with Total, Persian LNG with a
calculation formula rises to 70% — from capacity of 16.2mn tpy with Shell and Iran

P14 www. NEWSBASE .com Week 12 23•March•2022