Page 20 - FSUOGM Week 41

FSUOGM NEWS IN BRIEF FSUOGM

result of a 20% decline in revenues driven by Kobolev has also delivered on the full-year 2020 output will be 4.5%-5.0% less
the oil output cuts under the OPEC+ deal. business, which saw net profits skyrocket 5.5 y/y,” an analyst at the Kyiv-based Concorde
times to UAH63.3bn ($2.3bn) in 2019. Capital brokerage said in a research note.
"The case concerns the activities of the
Russian compliance with company's management. But it is difficult
to investigate the activities of management
OPEC+ deal at 90% in without the name Kobolev. It is built on CENTRAL ASIA & SOUTH
accusations of high treason. When it was
September opened, I do not know. I received the CAUCASUS
papers on this matter today," Kobolev told
Russia produced 9.19mn barrels per day Hromadsky Radio in an interview.
of oil in September so its compliance with Kobolev says the company perceives this SAP Ariba to help digitise
the OPEC+ oil output reduction deal could as "a very insistent invitation to a public
amount to 90% in the month, OPEC said on discussion." Uzbekistan's oil sector
Tuesday in its monthly report. “We are ready to accept this invitation. We
The country’s liquid hydrocarbon output have nothing to hide. We are absolutely open Uzbekistan`s oil regulator Uzbekneftegaz
rose by 0.07mn bpdy on the month to on the state audit of the debt reserve and on has announced its intention to become a full
10.04mn bpd. all other issues,” he said. member of the SAP Ariba global business
Compliance with the deal by OPEC states The head of the board says that he lost network, Uzdaily wrote on October 11.
increased to 104% in September from 101% count of the criminal cases against Naftogaz. The cooperation with SAP Ariba
in August as the organisation’s oil output “I personally stopped counting after I was will be implemented as part of a Digital
went down to 24.11mn bpd. personally fined UAH8bn ($281mn) in 2018. Transformation Program, initiated by
The world’s combined oil output in “Such a fine for me, as an individual, was Uzbekneftegaz. The main goal is to make
September contracted by 0.06mn bpd on issued by the State Customs. Then, in the all business processes in the sphere fully
the month and 7.83mn bpd on the year to courts, we were able to prove that there were automated. The SAP Ariba project will be
90.71mn bpd. no grounds for punishment and that this fine implemented jointly with the international
Commercial reserves of oil and oil was incorrect," Kobolev said. integrator company Parma-Telecom (Russia).
products in countries of the Organisation for SAP Ariba is an American software and
Economic Cooperation and Development information technology services company
(OECD) fell by 20.7mn barrels on the month JKX hydrocarbon output based in Palo Alto, California. It was acquired
to 3.204bn barrels and overshot the 5-year by German software maker SAP SE for $4.3bn
average by 219.3mn barrels in September. falls 13% in 3Q20 in 2012.
OPEC reiterated its forecast for a fall The cooperation is set to allow
in global demand for oil by 9.5mn bpd to JKX Oil & Gas (JKX LN) produced 10,245 Uzbekneftegaz to get direct access to suppliers
90.3mn bpd in 2020, and slightly worsened barrels of oil equivalent per day (boepd) of and global sales markets through the largest
the 2021 forecast to a rise by 6.5mn bpd from hydrocarbons in 3Q20, the company reported trading B2B platform. Today, the network
the previously projected rise by 6.6mn bpd. in its October 8 trading update. This is 3.5% covers more than 5.5mn suppliers worldwide
OPEC also raised the forecast for the more compared to 2Q20 and 12.6% less and is constantly expanding, with an annual
world’s combined oil production excluding year on year. The primary reason for the turnover of more than $2.8 trillion.
OPEC in 2020 to a fall by 2.4mn bpd thanks y/y decline is a 24.0% plunge in output in Some 76% of the Fortune 2000 companies
to rapid production recovery in the US. The Ukraine (to 4,727 boepd, or 4.8% less quarter are registered on SAP Ariba’s global business
2021 was decreased to a rise of 0.9mn bpd. on quarter). At the same time, in Russia the network.
company improved its output 0.3% y/y and Uzbekneftegaz said it would be a pioneer
11.9% q/q to 5,519 boepd. among the state-owned companies of
In 9M20, the company’s output was Uzbekistan in implementing a transition to
EASTERN EUROPE 10,378 boepd, which is 2.7% less y/y, as an business digitalisation.
increase in Russia by 4.6% y/y was offset by a SAP Ariba said it has already completed a
Head of Ukraine’s gas decrease in Ukraine by 9.4% y/y. large number of business process automation
projects for industry leaders in Uzbekistan,
company Naftogaz accused has accumulated large liquidity, as its including the successful implementation of
The company also reported that it
SAP products for LUKOIL.
of treason cash balance reached $18.8mn as of end- Alirizayev, first deputy chairman of the board
The initiator of the project, Shahzod
September, with no debt compared with
Andriy Kobolev, the head of Ukraine’s $14.5mn in cash a quarter ago and $14.9mn of Uzbekneftegaz underlined several important
national gas company Naftogaz, has been net cash as of the year’s start. The company aspects of the project.
accused of treason as a power fight for control announced its intention to spud its first well "Uzbekneftegaz has initiated a digitalisation
of the state-owned monopoly continues. in Ukraine in 2020, which will be its IG-146 process for the industry. This process was
The authorities have opened a criminal well. started with the introduction of solutions
investigation into Kobolev, who has “The company’s quarterly output exceeded to improve the efficiency of procurement,
successfully led the company for several our expectations of about a 7% q/q decline in document management and interaction with
years, steering it through its legal battle Ukraine (JKX intensified production at one contractors,” Alirizayev said.
with Russia’s Gazprom that ended with the of its new wells to improve the result) and As early as 2020-2021, the company's
Russian gas company paying Ukraine $2.9bn only a slight increase of output in Russia. In management intends to bring interaction with
in fines and signing new gas transit deal at 4Q20, we expect a moderate output decline contractors to a qualitatively new level.
the end of 2019. in Ukraine and Russia, and we estimate JKX's Through the implementation of the project,

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