Page 14 - FSUOGM Week 31 2022

FSUOGM NEWS IN BRIEF FSUOGM

In two and half years of operation, in output policy. Later in the day, news of government reads..
SEG has put nine wells into operation. modest planned production gains looked
Production from them was mainly obtained set to disappoint the Biden administration.
at the XV-P horizons, which have an The US has placed OPEC leaders United SOFAZ reduced foreign
average depth of 2,650 metres, the oil and Arab Emirates and Saudi Arabia under
gas firm said. pressure to pump more barrels in order to currency sales by 8.6% in
Tulkin Yusupov, executive director of rein in prices boosted this year by Moscow's
the SEG production division, said: “There invasion of Ukraine and the post-pandemic January-July
are a number of complications in the rebound in global demand for oil..
Chegara field that we deal with on a daily The State Oil Fund of Azerbaijan (SOFAZ)
basis. Difficulties are associated with the sold foreign currencies at FX auctions for a
increased corrosivity of the mixture. In a Kazakh authorities find new total of $212.3mn in July, the fund said in a
number of wells there is a problem related statement.
to creating a connection with the formation, owners for 16 hydrocarbon In June, SOFAZ sold foreign currency at
as well as complications associated with the FX auctions for a total of $278.1mn. Thus,
high viscosity of the produced oil. In other tracts in July in July, compared to June, the volume of
words, this is a classic complex field, and foreign currency sales by the State Oil Fund
there are more like it. Kazakh authorities have successfully found decreased by 23.7%.
“Under these conditions, by attracting new owners for 16 out of 17 hydrocarbon According to SOFAZ monthly data,
the best contractors, we were able to tracts auctioned in July, Upstream reported in January-July, the fund sold foreign
apply advanced technologies, launched on August 2. currencies in the amount of $2.9bn at
electric centrifugal and sucker rod pumps, The success was achieved despite auctions (a decrease of 8.6% compared to
which made the field a leader in terms ongoing uncertainty over the stability of January-July 2021).
of production dynamics. Today, our key operations on the country’s main oil exports SOFAZ is currently the main source
task is to provide Uzbekistan with its own route, namely the pipeline to Russia run by of foreign currency sales at FX auctions.
oil and with products of its processing the Caspian Pipeline Consortium (CPC), SOFAZ sold $6.67bn at foreign exchange
and eliminate the nation’s dependency on and an emerging need to invest billions auctions (a decrease of 8.6% compared to
imported raw materials, including for fuel of dollars into constructing alternative 2020) in 2021. The average monthly sales of
production. Fields like Chegara bring us shipping routes to China and Azerbaijan. foreign currency at auctions by SOFAZ in
closer to this goal day by day.” Kazakhstan’s Energy Ministry said the 2021 amounted to $556.6mn.
Currently, the daily production rate at auctions saw bidders from Kazakhstan,
the Chegara field is more than 133 tonnes of in a race to win the licences, significantly
oil, some 8.5 times more than it was when overpay on the assets' starting price leading Ukrainian government gives
management of the field was transferred to to total revenues of KZT21.1bn ($45mn).
SEG, the company said. Naftogaz permission to
There are plans to move on to
development of the Zapadnaya Chegara Moldovan market regulator change Eurobonds contract
field and fully drill the Chegara group of
fields.. approves 27% rise in gas Ukraine’s national gas company Naftogaz
has been given permission to change the
price lending contracts relating to Eurobonds that
Kazakhstan says OPEC+ The market regulator in Moldova, ANRE, it failed to pay in July, Interfax reported on
August 2.
may need to increase oil has accepted a 27% rise of the end-user failing to negotiate a payment freeze with
The company slipped into default after
natural gas price, rather than the 45% asked
output to avoid market by Moldovagaz at the end of June, before bondholders on July 27 regarding three
the latest increase in the import price.
outstanding Eurobond issues worth a
overheating draft decision to be soon published, are total of $1.4bn. Naftogaz said that too few
The end-user prices, as included in the
investors had agreed to the plan, ordered by
Kazakh energy minister Bolat Akchulakov calculated based on an average import price the government to “preserve cash” to buy
told reporters on August 3 that OPEC+ of $899 per 1,000 cubic meters. In August, badly needed gas supplies for the winter,
may have to increase oil output to avoid Moldovagaz will have to pay $1,460 per and without the government’s permission
the market overheating, as Kazakhstan and 1,000 cubic meters. the company cannot make the payment,
other OPEC+ participants were set to meet At the same time, Moldova carries out despite having more than $2bn on its
amid US pressure to add more oil to the intense efforts to secure gas supplies from balance sheet.
market, Reuters reported. Romania. President Maia Sandu travelled to The Cabinet of Ministers published
Most members of OPEC+ have already Bucharest at the end of last week and Prime a statement on its website on August 1
been seeing their output potential exhausted Minister Natalia Gavrilita met Romania’s giving consent to Naftogaz to change “the
by market pressures. new Ambassador in Chisinau, Cristian credit agreements dated July 17, 2019 and
"We have always said that the preferred Turcanu. November 6, 2019, by concluding additional
price corridor is $60-80 per barrel. Today During the discussions between Gavrilita agreements and/or setting out the said
the price is $100. So we might have to and Turcanu, Romania's support in the agreements in a new version”. However, the
raise output to avoid overheating," Kazakh process of strengthening Moldova’s national details about the amendments proposed
energy minister Bolat Akchulakov told energy security was reconfirmed, as well were not revealed.
reporters. as the provision of the necessary assistance The company initially missed the
Three other OPEC+ sources told Reuters in overcoming logistical challenges, deadline to pay off a $335mn eurobond and
that they still saw little chance for a change a statement issued by the Moldovan a coupon interest payment on July 19. The

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