Page 14 - EurOil Week 13 2022

EurOil NEWS IN BRIEF EurOil

of Krk to 2.9bn cubic metres (bcm) from the Italian Edison and the Greek gas company planned, its chief executive said, warning that
current 2.6mn cubic metres annually, Prime DEPA. Once completed, the pipeline will continued efforts to amend regulations for
Minister Andrej Plenkovic said in a statement. be able to transport 3 bcm of gas with the producers were undermining investment.
The government has said the country’s oil possibility of expanding to 5 bcm. Last year, Gas producers have spent more than a
needs can be fully met thanks to the terminal. 273 mcm of Azerbaijani gas were exported to decade and billions of dollars preparing to tap
In February, Plenkovic said it will secure Bulgaria. Romania’s estimated 200 billion cubic meters
enough gas in case Russia stops natural gas The Interconnector Greece-Bulgaria (IGB) in the Black Sea, only to put their projects
deliveries. was hooked up to the Trans-Adriatic gas on hold four years ago when an additional
Plenkovic said that the current pipeline (TAP) on 25 March, which in the offshore tax was introduced.
infrastructure allows for this increase. future will give Bulgaria access to gas from The European Union state’s estimated gas
“We believe that we can achieve this Azerbaijan for the first time. reserves pale compared with Russia’s, but
increase with the current infrastructure of our The construction of the IGB gas pipeline analysts said they could still make a difference
LNG terminal thanks to all the ships and all started on May 22, 2019 in Bulgaria. The IGB in central and eastern Europe, particularly
the existing plants there,” Plenkovic said. will connect Komotini in northeastern Greece after Russia’s invasion of Ukraine, helping the
He added that the country expects EU and Stara Zagora in central Bulgaria. The region to diversify gas supplies and bringing
funding for this expansion. The country length of the gas pipeline will be 182.6 km, the Romanian government billions of dollars
should also expand the oil storage capacity, as 150 of which will pass through the territory in revenue.
well as the capacity for gas transportation. of Bulgaria. IGB is intended for the export to BSOG, controlled by private equity firm
The Croatian government is taking Bulgaria of natural gas produced as part of the Carlyle Group LP has moved forward with its
steps to increase its energy production second phase of the development of the Shah project to extract an estimated 10 billion cubic
capacity. Earlier in March, the Economy and Deniz gas condensate field in the Azerbaijani meters of gas on government reassurances the
Sustainable Development Minister Tomislav sector of the Caspian Sea. The interconnector offshore tax will be cut.
Coric that Croatia intends to increase its gas will be connected to the TAP. It had initially planned to begin production
production with six new wells. He added that in November.
the total domestic production this year is The coalition government has repeatedly
expected to exceed 1 bcm, which meets 40% OKEA buys Neptune Energy’s pledged to amend the tax by the first half of
of domestic demand.. this year, but a draft of the legislation has yet
stake in Ivar Aasen offshore to be presented.
“With the constructive cooperation of all
Timeframe for Azerbaijani field in Norway the stakeholders..., first gas will be achieved
in the second quarter of 2022,” BSOG Chief
gas suppliy to Bulgaria via Norwegian oil and gas company OKEA has Executive Mark Beacom told Reuters.
“Our view is that continuously
completed of the acquisition 2.223% working
IGB revealed interest (WI) in the Ivar Aasen field from undermining domestic producers by
Neptune Energy.
constantly introducing yet again new
The long-awaited gas pipeline to transport OKEA, which has a target of achieving detrimental measures is the reason that
natural gas from Greece to Bulgaria will production of 18,500 - 20,000 boe per day in Romania has significantly failed to reach its
be ready at the end of June and will begin 2022, paid $12 million and the acquisition significant production capacity and will only
operation in September 2022, according increases OKEA’s ownership share from prolong this issue,” Beacom said.
to Bulgarian Prime Minister Kirill Petkov. 0.554% to 2.777%. Moreover, the government in March
According to him, the Greece-Bulgaria Ivar Aasen produces oil from sandstone extended by a year a support scheme for rising
pipeline will help reduce Bulgaria’s reservoirs. The field consists of the discoveries energy bills, with one of the provisions forcing
dependence on Russian gas. 16/1-9 (Ivar Aasen) and 16/1-7 (West Cable). gas producers to sell part of their output at
At present, Bulgaria meets almost all of its Oil and gas are transported to the Edvard capped prices in exchange for tax reductions
domestic gas consumption through imports Grieg facility for final processing. and exemptions.
from Russia’s Gazprom. The pipeline fits into From the Edvard Grieg offshore platform, Beacom said the new measures would
Europe’s renewed efforts to end dependence the oil is exported by pipeline to the Grane oil discourage producers.
on Russian gas, a key priority in Europe’s latest pipeline and on to the Sture terminal. “There is significant underinvestment in
policy since Russia’s invasion of Ukraine. The gas is exported in a separate pipeline bringing already discovered resources that are
The €220mn Greece-Bulgaria to the Scottish Area Gas Evacuation (SAGE) sitting at Romania’s doorstep ... and further
Interconnector (IGB) was planned to be pipeline system in the UK sector. discouraging any producer, including BSOG,
completed by 2020, but the project has faced a As previously reported, Neptune Energy from looking for more resources through
number of administrative obstacles in recent in November 2021 signed agreements to sell exploration,” Beacom said.
years, resulting in a long delay. According to its non-core interests in several Norwegian Romania had the highest effective tax rate
the media, there is hope that after the remarks offshore assets. (Read more below). on offshore gas production among relevant
of the prime minister during the inspection of The company at the time said it would European states, at 23%, more than four times
the long-delayed pipeline project. the project focus on core areas in Norway, these being the higher than average, according to a study by
will be completed on time. Gjøa, Gudrun, Njord, Dugong, and Snøhvit consultancy PwC Romania for the oil and gas
“June will be the last date for the fields. employers’ association.
completion of this very important project for Parliament’s failure to cut the offshore gas
us,” the Bulgarian prime minister said after tax last year drove OMV Petrom, majority-
touring a construction site in the Greek city of BSOG to start production controlled by Austria’s OMV, to postpone
Komotini. until 2023 a final decision on its Neptun Deep
Bulgaria signed an agreement to receive offshore Romania from Q2 deepwater project, where it discovered 1.5-3
1 bcm of Azerbaijani gas to cover part of its trillion cubic feet of gas, the biggest Black Sea
domestic gas consumption of 3 bcm. The Black Sea Oil & Gas (BSOG) will start project by far. The company could develop the
pipeline is being built by a joint venture with extracting gas from its Romanian offshore project with state gas producer Romgaz.
the Bulgarian energy company Energy BEH, project in the second quarter, later than

P14 www. NEWSBASE .com Week 13 31•March•2022