Page 20 - FSUOGM Week 42 2021

FSUOGM NEWS IN BRIEF FSUOGM

certain amount of gas-fired generation He reiterated this on October 12, but
and gas demand from industries such as said that EU member states that wanted
chemicals, often abated by technology such to increase supplies beyond the existing Caspian Sunrise share
as carbon capture, storage and utilisation agreements needed to sign off on long-term
(CCUS). Hydrogen production will also contracts, implying that Russia was not price gains after company
continue to use gas, also propping up future prepared simply to make more gas available
gas demand. on the spot market. announces four new oil-
The UK, Norway and the Netherlands are “We have to understand how much our
all set to see a decline in output, especially partners in Europe want to buy,” he said. bearing intervals identified
as reaching Net Zero is based on no new Meanwhile, Russia will continue to pump
fossil fuel exploration, as called for by the gas into the country’s underground storage at Kazakhstan deep well
International Energy Agency (IEA). This facilities until November 1 as planned,
is not so easy to follow, with, for example, Russian Deputy Energy Minister Evgeny The Caspian Sunrise share price gained
the UK approving the Cambo field west of Grabchak told reporters in Moscow on 19% on October 13 after the oil company
Shetland for exploration. October 13. But it now estimates that it has announced that its A8 deep well in
The other major source is Russia. enough gas in storage to get through the Kazakhstan has identified four new oil-
Baseload demand is key for the Kremlin. winter. (34.9-35.8 thsd boepd), or 6-9% bearing intervals, MarketWatch reported.
Russian President Vladimir Putin told more y/y. The well was said to have reached a depth
Russia’s Energy Week on October 13 that if of 5,046 metres (16,555 feet), with drilling
Europe wants more gas it has to sign new to continue towards a total depth of 5,300
long-term supply contracts with Gazprom. metres. The intervals would be tested once
“We have to know how much gas our CENTRAL ASIA & SOUTH drilling was ceased, Caspian said.
customers want,” Putin said. The company added that drilling at well
This comes as Russian exports to Europe CAUCASUS 153 was completed and it was now being
have never been higher. In September tested.
Gazprom guided for 183 bcm of exports Uztransgaz raises $300mn Production from the wider MJF structure
this year, but analysts say these will reach was proceeding at a rate of about 1,800 bpd,
190 bcm for this year and could easily be loan from Gazprombank Caspian also stated.
higher. The previous record exports of gas
to Europe amounted 200.7 bcm in 2018. Gazprombank is set to issue a $300mn
Putin also made the point that opening loan to help modernise Uzbekistan's gas SOCAR increases oil
Nord Stream 2 would be a solution to transit system, the bank's press service has
Europe’s current energy crisis. announced. production by 10% and gas
“The Nord Stream 1 and Nord Stream 2 The bank has concluded an agreement
pipelines are set to ensure the sustainability with the insurance company EXIAR on loan production by 9% y/y in Q3
of gas supplies to Europe and reduce GHG insurance for Uztransgaz.
emissions,” Putin said. Funds will be utilised to build, overhaul Azerbaijani state oil company SOCAR
Baseload demand will still exist by 2050, and reconstruct 545 kilometres of gas achieved growth in drilling and production
but it will be far smaller than today if the pipelines, as well as repair installations at in the 3Q21. The company has drilled more
EU manages to meet the targets set out compressor stations. than 20,000 meters, which is 82% more
in its Green Deal. Russia may still well be "This [agreement] gave us the than the same period last year. About 2mn
asking the same question in 30 years' time.. opportunity to launch the project in tonnes of oil and about 2bcm of gas were
a timely manner, which is especially extracted in the fields operated by the
important before the autumn-winter period company, and thus SOCAR increased oil
European gas prices for the uninterrupted supply of natural production by 10% and gas production by
gas to the population and sectors of the
9% compared to the same period last year.
subside after record highs economy," said Behzod Normatov, chairman The comprehensive action plan to maintain
stable production levels in the oil and gas
of the board of Uztransgaz.
European gas prices have subsided in recent Deputy chairman of Gazprombank fields operated by the company has been
days after spiking at close to $2,000 per Alexey Matveev added that the agreement consistently implemented.
1,000 cubic metres on October 6 amid dire "will mark the beginning of another In 3Q21, the country produced about
supply warnings. mutually beneficial cooperation." The 8.7mn tonnes of oil and more than 11.3bcm
The contract for November gas supply Gazprombank also noted that the project of gas. This means a 6% increase in oil
at the Dutch TTF hub – Europe’s biggest would support the export of Russian pipe production and a 38.6% increase in gas
gas trading platform – briefly touched €157 products and construction and installation production compared to the same period
per MWh (around $1,940 per 1,000 cubic services. last year. The increase in oil production
metres) on October 6. By October 11, the Matveev said that Gazprombank had was mainly due to the relative easing of
weighted average price had fallen to €85.2/ been supporting projects in Uzbekistan for restrictions on production under the
MWh, although it then rallied to €93.6/ many years. In 2019, it allocated $300mn OPEC+ agreement.
MWh on October 13 and €102.2/MWh to expand the capacity of the Shurtan Gas Export figures for the third quarter
on October 14. However, it then closed on Processing Plant, and also became a leading were also satisfactory, according to the
October 15 at around €88.8/MWh. consultant for the first Uzbek eurobond company. SOCAR exported 4.5mn tonnes
Markets were assured by indications issue. of oil, which is 22% higher than the same
that Russia would start sending more gas. In 2020, the bank opened a period last year. The indicators of crude
Russian President Vladimir Putin said on representative office in Uzbekistan. In oil exported by the company reflect the
October 6 that Russia was prepared to take the summer of 2021, it signed a $750mn volumes of crude oil owned by both the
steps to help stabilise the European gas agreement with Ferkensco Management, the state of Azerbaijan and SOCAR. The
market, without disclosing details. manager of Samarkand Chemical Plant. country's natural gas exports increased

P20 www. NEWSBASE .com Week 42 20•October•2021