Page 21 - FSUOGM Week 41

FSUOGM NEWS IN BRIEF FSUOGM

Uzbekneftegaz seeks the following results: contract is successfully finalised," OMV not view oil and gas infrastructure as our
-reducing the cost of purchases by at least Petrom said in a statement in June. target."
15%; Zeilinger now explains that OMV The 1mn b/d BTC, which is entirely
-reducing operating costs for the Petrom has a six-month negotiation buried, transits Caspian Sea Azeri light
procurement process by up to 70%; period, during which it will try to reach crude oil via Georgia to the Ceyhan port
-increasing the number of potential a mutually beneficial agreement. After and oil export hub on the southeastern
suppliers by 15%; this period, OMV Petrom must make Mediterranean coast of Turkey, a close
-reducing shortcomings in the workflow by specific commitments for this project, said ally to Baku that is aggressively backing
more than twice; Zeilinger. Azerbaijan’s attempt to reclaim the territory
-expanding to new markets. "We see the same geological structure within the internationally unrecognised
As bne IntelliNews has reported, the in Georgia as in Romania," the OMV self-proclaimed republic of Nagorno-
President of Uzbekistan, Shavkat Mirziyoyev, official said at an online conference on Karabakh controlled by ethnic Armenians.
intends to create "Digital Uzbekistan" by 2030. hydrocarbon resources in the Black Sea. The BTC is by far the main route for
Last year, the Uzbek government announced Zeilinger pointed out that the tax terms Azerbaijan’s oil exports, carrying about 80%
its intention to invest nearly $33bn in the oil for operations in Georgia and Bulgaria, of the crude bound for abroad per day.
and gas sector of the country by 2025. where Petrom recently entered the Han The 25bn cubic metre (bcm) SCP line
Asparuh offshore block, near Neptun Deep, carries gas to Turkey under two contracts:
are friendlier for this business than those in 6.6 bcm/year via Turkey's domestic transit
KMG issues $750mn bond Romania. grid and 6 bcm/year via the 31 bcm/year
TANAP pipeline, all supplied from the BP-

due in April 2023 operated Shah Deniz gas field. The SCP also
supplies gas to Georgia.
Kazakhstan’s state-owned oil company Azerbaijan accuses In November, the SCP and TANAP lines
KazMunayGas (KMG) on October 7 raised a Armenia of attempted are scheduled to start carrying up to 10
$750mn bond at 3.5% due in April 2023 after a bcm/year of additional gas to be fed into
“lengthy roadshow”, GlobalCapital reported. cluster rocket attack on oil the 10 bcm/year Trans Adriatic Pipeline,
KMG stands as the latest in a string of or TAP, running from the Turkey-Greece
Kazakh borrowers that have tapped into and gas pipelines border through Greece, Albania and across
capital markets within the ongoing year to the Adriatic to Italy.
raise funding. Azerbaijan has accused Armenia of on The Nagorno-Karabakh conflict zone lies
The bond was priced on October 8 at par October 6 firing a cluster rocket at part of the just 30-40 km (19-25 miles) from the BTC
- that equated to a spread of 259.9bp over BP-operated Baku-Tbilisi-Ceyhan (BTC) oil and SCP pipelines.
mid-swaps. pipeline and the South Caucasus gas pipeline British oil major BP said following the
Proceeds from the issuance will be used (SCP) during the 11th day of the conflict over claimed attacks on the pipelines that it was
to redeem KMG’s 2022 and 2023 notes. the Nagorno-Karabakh breakaway enclave. looking to beef up security at its facilities in
Halyk Finance, JP Morgan, MUFG and Armenia's defence ministry immediately Azerbaijan.
SkyBridge Invest were the bookrunners of rejected the accusation as “outright lies”. "We are especially worried about
the transaction. The Prosecutor-General's Office of yesterday's reports of a missile attack,
Azerbaijan said that the claimed late which was intercepted and destroyed by
evening attack on the pipelines running Azerbaijan's air defence systems in the
OMV Petrom kicks off through the country’s central-western vicinity of BTC and SCP export pipelines,"
BP said in a statement, cited by Reuters.
Yevlakh region—which it alleged saw a
production sharing talks for rocket that ejects more than 300 cluster BP operates on behalf of the Azerbaijan
"While the security of all assets which
bomblets land 10 metres away from the
Georgia offshore BTC—left the infrastructure unscathed as a government and our partners is provided by
result of measures taken by the Azerbaijani
the Azerbaijani government, we continue
Romanian oil and gas group OMV Petrom, Army, but that a civilian was killed. The SCP to work closely with the relevant authorities
which won the tender for an offshore is a crucial link in Azerbaijan’s ambition in an effort to take necessary measures to
perimeter in Georgia this summer, has started to in November start exporting oil to the provide the protection of our personnel,
negotiations with the country's authorities for a European Union along the new Southern operations and assets."
production-sharing agreement (PSA). Gas Corridor (SGC) of interconnected
The deal's completion depends on the pipelines with a terminus in southern Italy.
successful negotiation of a PSA, said Peter "Azerbaijan's reports of Armenian
Zeilinger, senior vice-president of the troops' attempt to strike the Baku-
Austrian group OMV, and former director Tbilisi-Ceyhan pipeline are outright lies,"
of the upstream segment at OMV Petrom. Armenian Defence Ministry press secretary
"The block will be formally awarded Shushan Stepanian wrote on her Facebook
if negotiation of a production-sharing page. "We have repeatedly said that we do

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