Page 10 - FSUOGM Week 02 2021

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primarily by converting existing vehicles that are If you’d like to read more about the key events shaping
over 20 years old. This would reduce pollution Europe’s oil and gas sector then please click here for
levels in Egypt’s largest cities, reduce transport NewsBase’s EurOil Monitor .
costs and bring down the country’s fuel import
bill. FSU: Germany mulls Nord Stream 2 sanc-
The central bank’s initiative will see loans tions protection
with a 3% interest rate provided through banks Germany’s northern state of Mecklenburg-Vor-
to individuals seeking to convert their gaso- pommern aims to establish a foundation to sup-
line-fuelled cars to use natural gas as well. The port the completion of Russia’s Nord Stream 2
financing is available for between seven and 10 gas pipeline, amid the looming threat of further
years. US sanctions against the project.
The state’s parliament gave the green light on
If you’d like to read more about the key events shaping January 7 to the initiative, which would set up a Trafigura has
the downstream sector of Africa and the Middle East, foundation that could buy needed materials for
then please click here for NewsBase’s DMEA Monitor. pipeline construction, thereby circumventing revealed it
Washington’s sanctions. Lawmakers approved tapped a Russian
Europe: BP relaunches North Sea sale €200,000 ($245,000) of public money for the
BP has reportedly relaunched the sale of some of fund, while the Gazprom-owned Nord Stream bank for a $7bn
its North Sea interests, following the collapse of 2 operating company has pledged a further
a previous deal with Premier Oil. €20mn. loan to fund its
The UK major agreed to divest its Andrew Washington’s current sanctions only target
Area and Shearwater assets to Premier Oil in those companies providing pipelaying vessels investment in
January, initially for $625mn, but the price tag for Nord Stream 2. But a proposed second Rosneft’s Vostok
was later renegotiated to $210mn in light of round will extend penalties to those providing
the oil price collapse. The deal was then scup- technical certification and insurance for the Oil megaproject
pered altogether when Premier announced in work, as well as additional pipelaying activ-
October its merger with fellow North Sea player ities such as surveying, trenching and rock in the Russian
Chrysaor. placement.
BP has now put the sales process back on The legislation was part of a broader defence Arctic.
track, according to Reuters, inviting companies bill that cleared US Congress but was vetoed by
to bid for the assets without a deadline. But the US President Donald Trump. The House of Rep-
producer is unlikely to collect more than $80mn resentatives then voted to override that veto and
from the sale, the news agency said. the Senate followed suit on January 1, meaning
After the deal was clinched with Chrysaor, the sanctions could come into law in the next few
Premier CEO Tony Durrant said he expected weeks.
talks between BP and the combined entity, In other news, Trafigura has revealed it
which will be known as Harbour Energy, to be tapped a Russian bank for a $7bn loan to fund its
revived at a later point. Aberdeen-based West- investment in Rosneft’s Vostok Oil megaproject
wood Global said in October that Harbour was in the Russian Arctic.
likely to continue with its buying spree in order Rosneft announced on December 29 it had
to offset declining production rates at some of its completed a 10% stake sale to Trafigura, first
older assets. agreed in November. But neither company dis-
As of press time, BP has not commented on closed the deal’s value, although Trafigura said it
the matter. Having already parted with billions was funded through long-term debt financing.
of dollars of assets, the UK major is aiming to In corporate filings in Singapore, however,
offload a further $25bn by 2025, as part of its Trafigura reported obtaining a €5.775bn ($7bn)
plan to move away from oil and gas and towards loan facility with the Credit Bank of Moscow
renewables. It has just disposed of its petrochem- on December 23, shedding light on the scale
icals business in a $5bn deal with the UK’s Ineos. of Vostok Oil’s deal. The implication is that

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