Page 12 - FSUOGM Week 09 2021

FSUOGM PROJECTS & COMPANIES FSUOGM

Mangistau announces Kazakh region's

biggest oil find in 30 years

KAZAKHSTAN LOCAL authorities in Kazakhstan’s oil-rich However, many of its fields were first developed
western Mangistau region have reported the dis- in the Soviet era and are now mature, with out-
The field is owned by covery of what could be the region’s biggest oil put in decline.
a company with ties find since the country’s independence in 1991. The main producer in Mangistau is Man-
to a former Kazakh oil A powerful gush of oil was reported at an gistaumunaigaz (MMG), a joint venture between
minister. exploration well drilled by a local company Kazakhstan’s national oil company (NOC)
called Meridian Petroleum, the Mangistau KazMunayGas (KMG) and Chinese operators
provincial government said in a statement on CNPC and PetroChina. Much of the region's oil
February 26. The field has been named after cel- is pumped to westwards to European and other
ebrated Soviet-era oilman Khalel Uzbekgaliyev. markets, although some is used in domestic
Its oil appears to be low in sulphur, which should refining, and some is sent to China.
make it easier to process and transport, giving Meridian Petroleum is a subsidiary of
it higher value. Further investigation is needed Meridian Capital, which has links with Kazakh
to determine its reserves, the government said. politician Sauat Mynbayev, who served as the
Meridian Petroleum president Baltabek country’s oil minister between 2010 and 2013
Kuandykov described the discovery of the field and is the current CEO of national railway com-
as “a truly historic event for our country.” Man- pany Kazakhstan Temir Zholy.
gistau governor Serikbai Trumov said the field The so-called Paradise Papers, a collection
would “give a powerful impetus to the social and of millions of documents relating to offshore
economic development of the region and create investments that were leaked to the press in
new jobs.” 2017, showed that Mynbayev set up Meridian
Mangistau Province accounts for 25% of oil with a group of bankers in 2002. The suspected
and condensate production in Kazakhstan. The billionaire acknowledged being a shareholder
region flows around 360,000 barrels per day of the company after the Paradise Papers came
(bpd) of oil and 3bn cubic metres per year of gas. out. ™

NEWS IN BRIEF

RUSSIA substantial turnover of top management combination of warm weather in Europe
at the company and implemented the very and cold weather in Russia, two things have
CEO of Russian gas giant significant improvement in the company’s happened.
dividend policy – the move to 50% payouts
First, European gas prices have fallen, to
Gazprom extends contract long demanded by the Ministry of Finance, c$200 per thousand cubic metres ($5.7 per
BCS GM reminds, while affirming a Buy
thousand cubic feet) from January’s average
for 5 years call on Gazprom. c$260/kcm ($7.4/mcf). Second, the transit
of Russian gas through Ukraine has fallen to
As followed by bne IntelliNews, despite
The CEO of Russian natural gas giant leverage concerns and pressure on profits in c70mn cubic metres per day in recent days
Gazprom Alexei Miller has had his contract 2020, Gazprom has reiterated its dividend from an average of c120 mcm per day in the
extended to May 2026, according to the policy. first half of February.
report by Interfax, possibly extending “The European gas market is
Miller's tenure in the company to up to 25 normalising, but Gazprom’s position still
years. Europe is warming, but still much improved,” BCS Global Markets said
As reported by bne IntelliNews, shares in a note. “This brings to a close a very
of Gazprom rallied in June 2019 on the a cold winter in Russia, gas strong run of European gas prices since
rumours that Miller, Gazprom's CEO since mid-December, as cold weather in first Asia,
2001, might be sacked. prices falling then Europe, tightened global gas markets,
"Speculation about Miller’s departure rapidly depleted European storage and
has long occupied the market, but it Europe’s weather is warming to late- drove up European gas prices. Regardless of
will not happen soon unless he himself spring levels from deep cold in February. the quick warm-up in Europe, the European
decides to step aside," BCS Global Markets Meanwhile, Russia remains locked in a gas market is in much better shape than it
commented on February 25. cold winter. This has led to lower prices for was just three months ago, mostly due to a
However, BCS GM analysts believe that European gas and a decrease in Russian gas swift drawdown of gas storage from overly
after the 2019 dividend strategy revamp transits through Ukraine. full to below average, and a full 27 bn cubic
by Gazprom, the figure of Miller is of European prices are falling from high metres below that seen this time last year.”
secondary importance for investors. levels even as Russian gas is being held back
In 2019, Miller himself initiated a to meet domestic demand. As a result of the

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