Page 20 - EurOil Week 15 2022

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The two sides are set to form a working Economica.net. In Aliaga, there are two refineries. One
group to further discussions on energy At the same time, the Romanian company is owned by largest Turkish refiner Tupras
co-operation and prepare the MoU ahead reported a double-digit decline of its oil and (TUPRS). The other is Star Refinery, owned
of the summit. They have the aim of natural gas production in Q1. by the State Oil Company of the Azerbaijan
developing a “Mediterranean Green By its decision to cease importing Republic (Socar).
Hydrogen Partnership” that would be the Russian oil, OMV Petrom follows a trend Socar has a stake in the production of
main channel to promote hydrogen trade of an informal ban that will probably soon Russian Urals and Siberian Light.
between Africa, Europe and the Gulf. become formal in Europe, after such a ban According to the latest data by Turkey’s
was enacted in the United States, United energy watchdog EPDK, Turkey has
Kingdom, Canada and Australia. imported 0.5mn tonnes of crude from Russia
Algeria raises gas exports are unlikely at this point because of the in January, a 19% share in Turkey overall
While sanctions on Russian natural gas
2.7mn tonnes of crude imports in the month.
to Italy by 9bn cubic metres economic damage they would cause, Europe
could better withstand an embargo on
Algeria’s state oil firm Sonatrach signed Russian oil. Estonia will stop importing
has a deal with Italy’s energy group Eni to “We have chosen not to process crude oil
provide 9bn cubic metres of gas in additional from Russia. We bring non-Russian crude Russian gas by the end of
volumes during this year and the next year, oil, it may originate from ex-Soviet republics
Bloomberg reported. - but not Russia. We also look to North or 2022
The new gas supplies will help Italy face West Africa [for oil supplies]. We also have
the gas shortage challenge driven by the the offer of crude oil from Kazakhstan on the Estonia will stop importing Russian gas by
Russia-Ukraine war, which has cut Russian table. But all purchases are made through the end of 2022, the government agreed in
supplies. Italy used to import 40% of its gas our London office (OMV Trading), which principle on Thursday. Liquified natural
supplies from Russia before the war, but is looks at all options for purchases,” said Radu gas (LNG) storage capacity in the form of a
now switching to other feasible options. Caprau, a member of Petrom’s management floating terminal will be created in Northern
The deal was signed during the visit responsible for refining and marketing. Estonia in the autumn.
of Italy’s Prime Minister Mario Draghi to “Russian oil would have been delivered “We must stop buying gas from Putin’s
Algeria, which started on Monday, April 11. at a discount but we are not buying. It is regime as soon as we can since they are using
Algeria was Italy’s second gas provider in our way of sanctioning Russia. It was our the revenue from sales of it to fund their war
2021. Gas imports are piped from the Hassi decision and that of the OMV group, they against Ukraine,” said Prime Minister Kaja
R’Mel field through Tunisia to Sicily via the are going in the same direction as well,” the Kallas (Reform) in a statement.
TransMed pipeline. official explained. “We have decided to increase our national
Italy received about 21 bcm of gas from OMV Petrom also said in a report filed gas supply and to establish a facility in
Algeria in 2021, compared with roughly 29 on April 8 at the Bucharest Stock Exchange Paldiski for the storage of LNG so that a
bcm from Russia. that its crude oil and natural gas production floating terminal can be taken into use from
Algeria’s Energy Minister Mohamed declined by 13% and 12% respectively, in the autumn. This represents an opportunity not
Arkab said in November last year that first quarter of 2022 compared to the same only for Estonia but for our region more
the country is keen to further enhance its period in 2021. widely, to head into winter without any
presence in the European gas market by The decline is in line with the natural dependence on Russian gas.”
proposing additional quantities, pointing depletion of the deposits, yet perhaps slightly Kallas said the government’s aim is to
out that Algeria was seeking to increase its steeper compared to the medium-term favour gas produced from LNG in bolstering
gas market share in Europe to more than the dynamics. its supplies.
current 30%. Petrom’s total hydrocarbon production “What we are very much hoping to see
According to Italy’s plans, the volume of fell by 13% to about 121,000 barrels of oil from gas sellers is that their moral compass is
gas that will initially flow from new sources, equivalent per day in Q1 this year, Petrom pointing in the right direction in this regard,”
including Algeria, is estimated at 10 bcm. In said. The total sales volume was 116,500 boe she said. “Moreover, our position in principle
2024, the additional amount will reach 20 per day, or -11% y/y. is that any LNG ship that reaches Paldiski
bcm. should not be carrying Russian gas.”
Meanwhile, Finland has said it will invest
up to €850mn to ensure sufficient energy
OMV Petrom cuts imports Turkey boosts oil imports supply and to speed up breaking away from
from Russia
its dependence on Russian energy.
of Russian oil, although its Turkey boosted imports of Russian Urals floating liquefied natural gas (LNG) terminal
The country will also acquire a new
output shrinks in Q1 crude oil to 7.42mn barrels (1mn tonnes) in together with Estonia to be placed in Finland
March from 2.7mn barrels in February in a
to put an end to gas deliveries from Russia,
OMV Petrom, the largest energy company bid to benefit from hefty discounts of around Minister of Economic Affairs Mika Lintila
in Romania, confirmed on April 10 that it $35 per barrel, S&P Global reported on April said.
no longer buys crude oil from Russia for 8.
consumption at its Romanian refinery. In April to date, three Aframax
Even if it is going to be more expensive, (a deadweight between 80,000 and
OMV Petrom will seek to buy crude oil from 120,000 tonnes) cargoes have loaded bound
other sources, the company’s officials told for Aliaga, near Izmir, in Turkey.

P20 www. NEWSBASE .com Week 15 15•April•2022