Page 14 - FSUOGM Week 40 2019

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Formation are being tested at the Palyanovsky test-site of the Krasnoleninskoye field in
the Khanty-Mansi Autonomous Okrug. Commercial inflows have been obtained at
all wells. The outcomes of these activities are expected to lead to commercial technologies for developing the Bazhenov Formation by 2021: these are, in turn, expected to become profit-generating technologies by 2025.
Gazprom Neft, October 3 2019
Arctic production unprofitable at current prices
Margins for oil and gas production in Russia’s Arctic offshore are too low for development at current prices, Energy Minister Alexander Novak said on October 5 during the Russian Energy Week.
“The margin of the Arctic projects is
not sufficient as of today. We noted that
and we made a corresponding report to the Russian government that we need to simulate conditions to ensure intensive development of the Arctic, we need to create a taxation system that would make profitability of Arctic projects similar to the projects in Western Siberia or in other regions,” he said.
Drilling in the Arctic zone is very expensive, the cost of a single well ranges from US$500 million to $1 billion. And if the drilling does not bear results, the company loses the money, so it is “a risky endeavour,” he said.
State-owned oil operators Gazprom Neft and Rosneft are working in the offshore region but not as intensively as they could. “At the same time, we see that the current contraction of prices for hydrocarbons makes the Arctic projects economically unattractive to a large degree,” he said.
October 7 2019
Rosneft gets all-clear for West Siberian GPP
The Khanty-Mansiysk government has
given Rosneft a land lease for developing the Maiysky gas processing plant (GPP), it said in a statement on October 7.
Work on the project, aimed at helping Rosneft utilise more associated petroleum gas released at the South-Balykskoye oilfield, will start by the end of this year. Commissioning is expected by March 2022. The project’s cost is RUB22bn ($340mn).
October 8 2019
EASTERN EUROPE
Poland not to buy Russian gas after 2022
Poland will not buy any Russian gas after 2022, Piotr Naimski, the government’s strategic energy infrastructure commissioner, told Polish Radio on October 4.
“Both Baltic Pipe and expansion of the LNG terminal is our strategic way out from the existing situation of dependence on Russians,” he said. “After 2022, this problem will be solved, all Poland’s gas imports will be from another direction.”
The long-term supply contract between Poland’s PGNiG and Russia’s Gazprom is due to expire in 2022. In 2018, PGNiG cut its gas imports by 6.4%.
In June 2017, Poland and Denmark signed a memorandum on construction of the Baltic Pipe project, which will pump up to 10bn cubic metres per year of Norwegian gas to the two countries. It is due to start up in 2022.
October 4 2019
Ukrainian gas storage reaches 20.5 bcm
There is now 20.5bn cubic metres of natural gas in underground gas storage (UGS) facilities in Ukraine, state-owned oil and gas company Naftogaz reported on Facebook on October 7. Ukraine had set a target of entering the winter heating season with at least 20 bcm of gas and has surpassed this goal. In previous years it has sought to stock only 17 bcm. Ukraine says the extra stored volumes are necessary this year because of risks associated with its gas transit contract with Russia, due to expire at the end of 2019.
October 7 2019
Belarus may cut back on Russian gas in 2020
Belarus may reduce purchases of Russian gas next year to factor in the launch of its new nuclear power plant (NPP), Belarusian Energy Minister Viktor Karankevich said.
Gas consumption is expected at 20bn cubic metres this year, he said, and “may be lower” in 2020. Russia, Belarus’ sole gas supplier, provided the country with 20.33 bcm of gas in 2018, versus 19 bcm in 2017.
October 8 2019
CENTRAL ASIA & SOUTH CAUCASUS
IFC to advise Uzbekistan
on terms for 1,300-MW gas
plant
The World Bank’s International Finance Corporation (IFC) has signed an agreement to advise Uzbekistan on the structure and tender of a public-private partnership (PPP) to develop a 1,300 MW gas-fired power plant in Syrdarya Region, the IFC said in a statement.
The IFC’s support will help attract qualified private sector investors to develop the project and allocate risk appropriately between the public and private sectors, the statement said. The government will select an investor via
a competitive bidding process. This public-private partnership is expected
to help modernise Uzbekistan’s ageing power infrastructure and provide a steady supply of electricity for both residents and businesses. Uzbekistan will see its energy demand grow by up to 50% by 2030, according to World Bank Group estimates.
“The successful implementation of this public-private partnership will improve the stability of electricity supply and allow for more efficient use of natural gas,” said Golib Kholjigitov, head of Uzbekistan’s Public-Private Partnership Development Agency. “The competitive tender
process will also establish standards for transparency that will increase investors’ confidence and benefit procurement of PPP projects across different sectors of the economy in the years to come.”
“Uzbekistan, like many developing countries, has a limited amount of
funds that it can spend on much needed infrastructure projects,” said Wiebke Schloemer, IFC regional director for Europe and Central Asia. “By introducing the capital and expertise of the private sector, the country can spur the development of major infrastructure projects to improve the business environment and improve the quality of life for its people.”
The IFC currently manages a $58mn investment portfolio in Uzbekistan with investments mainly in the textile and financial sectors.
bne IntelliNews, October 3 2019
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Week 40 09•October•2019