Page 20 - FSUOGM Week 42

FSUOGM PROJECTS & COMPANIES FSUOGM

Epsilon makes gas find

in Uzbekistan

UZBEKISTAN US-REGISTERED oil firm Epsilon Develop- company, alleged to have Russian owners, spe-
ment has reported the discovery of a gas and cialises in developing hard-to-recover reserves
Epsilon has rights to condensate field in Uzbekistan’s Kashkadarya with higher risks. It has hired overseas contrac-
five subsoil blocks region. tors to assist with its work, including US services
across Uzbekistan. The field named Alouddin was found at the giant Schlumberger.
Kultak-Kamashi block and is estimated to con- Epsilon has reported bringing online several
tain 17.2bn cubic metres of gas and 1.072mn new wells recently, including Ayzavat-8 on Sep-
tonnes of condensate, Epsilon said in a statement tember 10, which produces 800,000 cubic metres
on October 14. per day of gas, Chigli-8 on September 29, which
“Additional works on the field structure and flows 80,000 cubic metres daily, and Kirkku-
reserves update continue as planned,” it said. loch-1, which began delivering 250,000 cubic
Kultak-Kamashi is one of five blocks Epsilon metres daily on October 3. All of these boreholes
was awarded rights to at the end of 2018. The are located at the Kulta-Kamashi block.
others are Mubarek, Surkhan, Koskudyk-Ashib- Since President Shavkat Mirziyoyev assumed
ulak and West Fergana. Epsilon says on its web- power in late 2016, Uzbekistan has been work-
site that the acreage contains 560 bcm of gas in ing to attract more international investment to
proven, probable and possible reserves, citing lift its upstream sector out of stagnation. But the
independent appraiser DeGolyer and Mac- industry continues to be dominated by Chinese
Naughton. It expects to invest some $5.2bn in and Russian interests, with few Western oil firms
the projects between 2019 and 2023. arriving in the country.
Epsilon has already launched production at State-owned Uzbekneftegaz (UNG) is the
Kultak-Kamashi, Mubarek and Surkhan and country’s largest gas producer, followed by Rus-
chalked up six new gas discoveries last year. The sia’s Lukoil and China’s CNPC. ™

NEWS IN BRIEF

RUSSIA Sova Capital also views the formal setting The full-year dividend is expected to
of tariffs under this methodology as positive, reach RUB168 per share, with dividend yield
Russian government as it removes some of the uncertainty from estimated at about 4%.
this summer after Rosneft asked for tariffs to
"Lukoil’s dividend on 1H20 results is
approves Transneft tariffs be revised downwards. small by the standards of recent years, but
Transneft reported a 3% quarter-on-
understandable given the macroeconomic
as expected quarter and 17% year-on-year decline in situation in the period. However, we expect
the yield on 2021 to more than double to
crude oil deliveries in 3Q20 to 106mn
The Russian government has approved the tonnes, with the results seen as in line with near 10%," BCS GM believes, seeing this as
tariff indexation scheme for state oil pipeline expectations on continuous pressure from supporting a Buy recommendation on the
operator Transneft for 2021-2030, following OPEC+ oil output cuts.. stock.
the Federal Antimonopoly Service (FAS)
proposals that were seen as favourable for the
company, Vedomosti daily reported. Lukoil recommends interim
As reported by bne IntelliNews, most EASTERN EUROPE
recent reports already suggested that dividend as expected
Transneft should avoid the biggest risk to Lithuania sees no signals
its financials, namely the reduction of its oil The board of Russia's second-largest oil
transportation tariffs. producer, private Lukoil, approved the RUB46 on Belarusian cargo
The approval of the tariff scheme for ($0.59) per share interim dividend for 1H20,
Transneft "means not only removing the risk in line with expectations. diversion to Russia yet
of a drop in tariffs, but even a very moderate As reported by bne IntelliNews, Lukoil
improvement in tariffs," BCS Global Markets has shown mixed results in 2Q20 that have LTG Cargo, part of Lithuania's state-owned
commented on October 16, believing that caused the analysts to focus on short-term railway company Lietuvos Gelezinkeliai
the positive outcome has already been priced risks to its dividend outlook. (Lithuanian Railways), which transports
in for Transneft shares. The approved interim dividend is Belarusian oil products to the Lithuanian port
The tariff indexation for Transneft from "precisely the number indicated in the of Klaipeda, said on October 15 that there are
2021-30 will be set at inflation minus 0.1%, company’s presentation for its 2Q20 “no signals” that the volumes of Belarusian oil
with the Ministry of Economic Development IFRS results call, and thus is thoroughly products will drop or they will be diverted to
expecting inflation to be 3.8% in 2020, 3.7% unsurprising," BCS Global Markets Russian ports.
in 2021 and 4% in 2022-23. commented on October 16. Egidijus Lazauskas, the CEO of LTG

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