Page 15 - FSUOGM Week 40 2022

FSUOGM NEWS IN BRIEF FSUOGM

Kazakhstan sees decline pipeline maintenances in a possible bid to physically and contractually able to handle
exert control over most Kazakh oil exports
the quantities requested by Moldova",
in daily crude output due to at will. said the representatives of the Ukrainian
company.
lower production at Tengiz Gazprom to decide by
field this week SOFAZ reduced foreign

Kazakhstan’s daily crude production fell by October 20 whether to currency sales by 10.4% in
around 20,000 tonnes per day in a few days continue deliveries to
up to October 5 due to lower production January-September
at the giant Tengiz field, according to the Moldova
country’s energy ministry. The State Oil Fund of Azerbaijan (SOFAZ)
The news comes after reports last In a notification sent to Moldovagaz, sold foreign currencies for a total of
week stated that another giant oil field in Gazprom said that an agreement has not yet $465.3mn at FX auctions in September, the
Kazakhstan, Kashagan, had seen its daily been concluded regarding the settlement of fund said in a statement.
output rise by approximately the same the Moldovan company’s historical debt and SOFAZ sold foreign currency at FX
amount. it claims the right to terminate the contract auctions for a total of $440.5mn in August.
The ministry did not elaborate at any moment, as quoted by Infotag.md. Thus, in September, compared to August,
on reasons behind Chevron-led This is the first time that Gazprom has the volume of sales of foreign currency by
Tengizchevroil’s (TCO’s) decision to mentioned the historic debt issues as a the State Oil Fund increased by 5.6%.
cut production at Tengiz. Scheduled reason for terminating the contract. Until The fund sold foreign currencies in the
maintenance works at the field ended in now, the Russian company has insisted on amount of $3.85bn at auctions in January-
September. current payments — which Moldovagaz has September 2022 (a decrease of 10.4%
“As a matter of policy, Tengizchevroil managed to keep under control, albeit with compared to January-September 2021).
does not comment on the details of current minor delays sometimes. SOFAZ is currently the main source of
and future production levels,” the company “Gazprom reserves all rights, including foreign currency sales at foreign exchange
told Reuters in an email. “Currently the right to completely stop deliveries auctions. SOFAZ sold $6.67bn at foreign
TCO’s production of crude oil continues in case of violation of the gas payment exchange auctions in 2021. The average
uninterrupted.” obligation until October 20, as well as the monthly sales of foreign currency at
right to terminate the contract at any time auctions by SOFAZ in 2021 amounted to
due to a serious violation of the terms for $556.6mn.
US imports of Kazakh crude concluding an agreement of settling the
historical debt,” the notification reads.
down two thirds since Ukrainian authorities made clear that Ukraine's gas reserves
In the meantime, the Moldovan and
February Gazprom has all the technical conditions to reach 14 bcm
deliver the entire amount of gas contracted
US imports of Kazakh crude oil have fallen under the long-term agreement signed last Ukraine’s gas storage has almost reached
by two-thirds since February, according to a year. Gazprom cut the deliveries by 30% 14bn cubic metres as it continues to
Reuters analysis of US Customs data. as of October 1 mentioning issues at one accumulate critical reserves for the heating
The decline was mainly caused by of the crossing points between Russia and season, Ukraine Business News reported on
repeated pipeline and terminal outages Ukraine. October 4.
along with worries over the status of exports However, another interconnector can Ukraine’s state-run gas company,
arriving on markets via a Russian port, be used by Gazprom to transfer 30mn Naftogaz, was originally given the task
given the sanctions applied to Moscow in more cubic metres per day, compared to of ensuring the country has 19 bcm of
response to its war in Ukraine. The decline the 2.3mn cubic metres cut by Gazprom gas; however, reserves are currently only
underscores the overall changing global from its deliveries to Moldova. Gazprom at 13.9 bcm. The company brought more
oil flows seen since Russia launched its cut the deliveries to 5.7mn cubic metres per than 200mn cubic metres from private
unprovoked invasion of its neighbour. US day (compared to 8mn cubic metres under companies, helped by funding from allies
refiners began increasing purchases of the contract), which is enough for current such as Canada.
Middle East crude instead of Russian crude. consumption, but not reserve build-up, in Nevertheless, Sergiy Makogon, CEO
US buyers imported nearly 4.3mn Moldova. of Gas Transmission System Operator of
barrels of Kazakh CPC Blend in February- The gas transmission system operator of Ukraine (GTSOU), believes that Ukraine
September, down from 13.2mn barrels Ukraine confirmed the transport capacities can survive a normal winter if it has at least
recorded in the same period last year. not currently used by Gazprom. 14.5 bcm by mid-October, when the heating
Initially, traders feared that CPC loadings "The Sudzha entry point to the Ukrainian season begins. If the winter is harsher than
of Kazakh oil from Russia's Novorossiysk gas transport network from the Russian expected, then Makogon stated that Ukraine
port might be barred this year. They Federation is used at about 42mn cubic will opt for its backup plan.
were not, but Russia appears to have metres per day, while 72mn cubic metres “In case of unexpected weather
enforced various requirements on terminal is reserved and paid for by, Gazprom. conditions, we created possibilities to
equipment repairs along with oilfield and Therefore, this point of entry would be import gas from Europe (...) of 54 mcm per

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