Page 19 - FSUOGM Week 36

FSUOGM NEWS IN BRIEF FSUOGM

RUSSIA context, proposals concerning amendments fall in oil demand for the year will amount to
to the Tax Code of the Russian Federation… 9–10mn barrels per day, this is a figure close
Gazprom sees August setting a tax deduction for creation of to the truth,” he said.
a reserve of new facilities producing
Novak also said that commercial oil
exports rebound, but US hydrocarbon raw materials are prepared," reserves in the Organisation for Economic
Co-operation and Development (OECD)
Novak said.
LNG looms companies and banks will establish a countries could reach the average five-year
A syndicate of vertically-integrated
figure in 2021.
Russia's natural gas giant Gazprom saw its gas special-purpose vehicle with 2% and 98% “In July, we noticed that stocks fell by 34
exports reach 16bn cubic metres, the highest stakes owned by the sides respectively. million barrels per day in OECD countries.
monthly exports in 2020 so far, Interfax The companies will sign contracts with If the trend continues, we will gradually
reports. the vehicle to borrow money on well reduce the stocks accumulated in the second
As reported by bne IntelliNews, Gazprom construction and maintenance. quarter. The five-year average could be
reported its worst quarter in over a decade The government will provide a tax reached in 2021,” Novak said.
in 2Q20, but the management remained deduction when assigning oil wells to
optimistic on the short-term outlook and the companies. The total amount of tax
reiterated the dividend policy. deductions for the duration of the program
BCS Global Markets on September 3 of 2022–2025 is estimated at 32.15 billion EASTERN EUROPE
welcomed the increase in exports, seeing the rubles. The companies paying the mineral
news as slightly positive. "Gazprom finally extraction tax (MET) on more than 1 million Ukraine imported almost
booked a decent month of European exports tonnes of oil in 2019 are entitled for the
in August, but only at low-margin prices. deduction. 13 bcm of gas in January-
We watch for the return of US LNG this Novak said that introduction of tax
[autumn]," BCS GM analysts wrote. deductions to support oil servicing can bring August
In the reporting month the European spot a 1.15 trillion ruble additional income to the
prices, although improving late in the month, budget, while companies will invest 300- The Gas Transmission System Operator
only averaged $89 per million cubic metres. 400bn rubles. (TSO) of Ukraine LLC transported 12.5bn
BCS GM believes that the supply/demand According to Novak, the Russian oil cubic metres of gas from Europe to Ukraine at
balance in Europe has "definitely improved service market can fall by almost 50% in the request of its customers between January-
this summer as LNG – particularly from the 2020 without support, and the share of August 2020, which is 30% (2.9 bcm) more
US – retreated from the market." foreign companies can exceed 50%. than in the same period last year and 63%
The analysts do not believe that "Concerning the situation at Russian higher than the average volume in 2016-2019,
Gazprom's uptick in sales will be very far companies, the decrease of oil services the company said on September 2.
above the company’s accounting breakeven market can amount to almost a half of the Imports from Slovakia amounted to 8.0
level of $100 per mcm (in 2Q20 Gazprom’s 2019 level in 2020–2021,” Novak said. bcm (+35% compared to the same period last
average European export price was about “As a result, we see risks of a significant year); from Hungary – 3.2 bcm (+20%); from
$110 per mcm). decline of the margin of oil service Poland – 1.3 bcm (+34%).
BCS GM also expects a re-ramp of US organisations. The decline in the amount Ukraine’s imports over the reporting
liquefaction of LNG to near full capacity by of orders will inevitably strengthen market period included also the virtual reverse flow
October, with much of the extra 5 bcm per competition that can lead to irreversible (backhaul) operations, which were launched
month of gas likely ending up on European economic consequences for some at the beginning of 2020, and totalled 38%,
markets either directly or indirectly, "capping companies." or 4.7 bcm: from Slovakia – 1.6 bcm; from
price increases and taking market share from Hungary – 2.3 bcm; from Poland – 0.8 bcm.
Gazprom and other suppliers of pipeline In August 2020, Ukraine imported 3.4
gas." Global oil demand to fall bcm of natural gas, which is 58% (or 1.2
bcm) more than in July and 67% (or 1.4
9-10mn bpd in 2020: Russia bcm) more than in August 2019.
Russian govt set to launch Global demand for oil may decrease by 9–10 transportation from European countries to
In August, the daily volumes of gas
oil well fund to support oil million barrels per day in 2020, Russian Ukraine totalled 109mn cubic metres, which
is seven times less than in January 2020 – 15
Energy Minister Alexander Novak said on on
service firms September 4 as cited by the ministry on its mcm.
Since the start of 2020, 8.2 bcm of the
Twitter page.
The Russian government has elaborated a “Today the situation is clearer than in imported gas volumes was transferred into
tax deduction for the establishment of a fund April, there are more certainties on the underground gas storage facilities to be kept
of unfinished oil wells to support oil service market. We see that demand has begun in the ‘customs warehouse’ mode. 60% (4.9
companies during the OPEC plus deal, to grow, although there are still many bcm of this came as short-haul deliveries).
Energy Minister Alexander Novak said in uncertainties in the future, but related to the Ukraine imports natural gas only from
the magazine Energeticheskaya Politika on impact of the pandemic,” Novak was quoted the European Union and hasn't imported gas
September 8. as saying. from the Russian Federation since November
"Work to create conditions to make a fund “We hold monthly meetings to monitor 2015.
of unfinished oil wells has been made on the implementation of the OPEC+
orders from the president of Russia. In this agreement, make forecasts for the future. The

Week 36 09•September•2020 www. NEWSBASE .com P19