Page 12 - EurOil Week 13 2022

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Israel-Turkey gas pipeline firm INA with 12%. Croatian state oil pipeline Romgaz borrows €325mn
operator Janaf said on January 18 it has signed
not realistic in short term a deal with Serbian oil and gas company NIS from Raiffeisen to pay for
on the transportation of crude oil in 2022.
says Turkish foreign minister reserved Janaf capacities for transportation of Neptun Deep takeover
For January-December 2022 NIS has
Striking an agreement for a gas 3.2mn tonnes of crude oil, plus or minus 10%, Romanian state-controlled natural gas
pipeline connecting Israel and Turkey and the Croatian company said in a statement on company Romgaz announced in a note to
constructing the infrastructure will not be the website of the Zagreb Stock Exchange. investors a €325mn loan agreement sealed
possible in the short term, Turkish Foreign Janaf operates 622 kilometres of pipelines with Raiffeisen Bank.
Minister Mevlut Cavusoglu said on March 31. and has crude oil and oil products terminals The loan is intended to finance part of the
With Europe scrutinising any workable on the island of Krk, as well as in Sisak, Virje, acquisition of Exxon Mobil Exploration and
options for sourcing more non-Russian gas, Slavonski Brod and Zitnjak. Production Romania Limited — one of the
the idea of flowing Israeli gas to European Croatia’s Ministry of State Assets holds a partners in the 50:50 association that holds
Union states via a pipeline link to Turkey has stake of around 52% in Janaf, followed by the concession rights over the Neptun Deep
lately gained more currency. Hopes that such state centre for enterprise restructuring and offshore project.
a project could soon be put in place have privatisation, CERP, with 26%, and energy The loan will be repaid within five years
risen given how Turkey and Israel have lately firm INA with 12%. in quarterly instalments, according to the
been trying to mend their relations. However, terms of the loan agreement agreed by the
Cavusoglu, speaking to Turkish broadcaster shareholders on December 10.
A Haber, dispelled the notion that the gas Romania’s ruling coalition to The actual terms of the deal sealed with
project could be realised quickly. Raiffeisen were not specified.
Cavusoglu added that he would travel to come up with new Offshore The bank loan agreement was signed in
Israel and Palestine with Energy Minister accordance with the conditions approved at
Fatih Donmez in mid-May and would discuss Law in early April the shareholder meeting on December 10,
the appointment of ambassadors with his 2021.
Israeli counterpart during the visit. A revised version of the amendments to the Romgaz recently summoned its
Israel boasts the giant Leviathan gas field. legislation on offshore and onshore oil and shareholders on April 28 to give the
It has reserves of 620bn cubic metres (bcm) of gas exploitation will be agreed among the final approval to the $1.06bn deal with
gas and could conceivably supply 10-12 bcm/ members of the ruling coalition by the end of ExxonMobil.
year to Europe. One political complication next week, the leader of the Romanian Social The company’s management expects the
for Turkey is that the required pipeline would Democratic Party (PSD) Marcel Ciolacu said deal to be completed in the second quarter of
have to pass through the disputed island of on March 30. this year.
Cyprus. Investors have been lobbying the
Some analysts have suggested it would, government to change the law so that they can
given the issue of Cyprus, be both politically go ahead with major offshore projects. Serbia considers response
and technically easier for Israel to pipe its gas The amendments, so far referred to as
to Egypt’s liquefied natural gas (LNG) plants. the revised Offshore Law, will include a to JANAF’s decision to
There it could be converted to LNG and broader revision of the oil and gas regulations
shipped to buyer nations. But it would also touching upon the onshore perimeters as suspend oil deliveries
take years to realise this project. well, Ciolacu stressed. This is why the debates
among the members of the coalition took Serbia’s Ministry of Mining and Energy said
longer than expected, he explained. it is analysing all possible solutions to ensure
Croatia’s Janaf signs oil gas at a preferential price” (admittedly a rather secure supply to the Serbian market in case
Asked if “it is possible for Romania to buy
of an interruption of crude oil supplies to the
transportation deal with ambiguous question), Ciolacu said that “[as a Serbian Oil Industry by Croatian oil pipeline
operator Janaf.
rule] there are no preferential prices in a free
Serbia’s NIS market”. delivering crude oil to Serbian oil and gas
Janaf said on March 29 it will stop
However, the new regulations shaping the
Croatian state oil pipeline operator Janaf free market will make Romania independent, company NIS following the European Union’s
said on January 18 it has signed a deal with he answered touching on a delicate issue: sanctions against Russia imposed due to its
Serbian oil and gas company NIS on the that of the gas trade regulations included war in Ukraine.
transportation of crude oil in 2022. in the law. Making gas available on a single NIS is majority owned by Russia’s Gazprom
For January-December 2022 NIS has European market (in line with the Third Neft, which holds 56.15% stake in the Serbian
reserved Janaf capacities for transportation of Energy Package) should in principle diminish refinery. The Serbian state holds 29.87% of
3.2mn tonnes of crude oil, plus or minus 10%, the country’s self-sufficiency, compared NIS. Unlike EU member Croatia, Serbia has
the Croatian company said in a statement on to more restrictive regulations as those not imposed sanctions on Russia.
the website of the Zagreb Stock Exchange. included in the existing legislation (such According to an announcement from
Janaf operates 622 kilometres of pipelines as the mandatory sale of local gas on local Serbia’s Ministry of Energy and Mining,
and has crude oil and oil products terminals centralised commodity exchanges). possible routes for the supply of crude oil and
on the island of Krk, as well as in Sisak, Virje, The key elements of the new offshore oil derivatives from terminals and refineries
Slavonski Brod and Zitnjak. exploitation regulations remain unknown in the area are currently being analysed, as
Croatia’s Ministry of State Assets holds a since they have not been publicly debated. well as available legal, business, logistical and
stake of around 52% in Janaf, followed by the technical possibilities to import crude oil and
state centre for enterprise restructuring and derivatives, including by pipeline, rail, tanks
privatisation, CERP, with 26%, and energy and river transport.

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