Page 17 - FSUOGM Week 41 2021

FSUOGM NEWS IN BRIEF FSUOGM

hydrogen infrastructure through the fund as GR maintained strong profitability per day (bpd) following upgrades to
it is not enough at all,” Riabchyn said. margins, with adjusted EBITDA margin be completed in August 2022, Yermek
standing at 45.7% in H1. Yield on GR’s Marabayev, deputy managing director of
new green eurobond has been declining, operator NCOC, said on October 7.
standing at 3.7% by October 7. Notably, the Kashagan, developed by a consortium
CENTRAL ASIA & SOUTH spread vs sovereign GEORGIA 26 declined that includes Eni, Royal Dutch Shell,
from around 150bps in the summer months ExxonMobil, CNPC, Total, Inpex and
CAUCASUS to around 120bp by end-September. Kazakh state energy firm KazMunayGaz,
currently produces around 380,000 barrels
Zarubezhneft may start SIBUR signs petrochemical per day.

exploration in Kazakhstan

SOCAR Polymer, a 57%-owned subsidiary agreements with state-run Mammoet loads out
of the State Oil Company of Azerbaijan Kazakh firms new drilling platform for
(SOCAR), exported products worth
$142.7mn from January-August of this Russia's SIBUR and Kazakh state-run firms Turkmenistan’s Garagol
year, marking a $60.6mn, or 73.8%, year Samruk-Kazyna and KazMunayGas have
on year increase, according to the Center signed agreements setting out terms of Deniz West
for Economic Reforms Analysis and cooperation on petrochemical projects in
Communication. the special economic zone of the National Mammoet has loaded out a new drilling
According to the same report, in August, Industrial Petrochemical Technopark in platform for Turkmenistan’s Garagol Deniz
Azerbaijan exported primary polypropylene Kazakhstan’s Atyrau region. West development located 75 kilometres
worth $9mn, up 76.5% or $3.9mn year The deals regulate the creation of offshore in the Caspian Sea.
on year. In January-August, Azerbaijan joint ventures as part of an integrated gas The company initially supported the
exported primary polypropylene worth chemical complex, including a potential engineering and construction contractor
$75.9mn, equating to a $24.1mn or 46.5% project to build a polyethylene facility and a ILK Insaat with load-out of the jacket for
gain year on year. polypropylene plant that is currently under the Garagol Deniz Drilling Platform A.
The SOCAR Polymer petrochemical construction. SIBUR’s stakes in both joint The firm was later invited to return to the
project includes a polypropylene unikt with ventures will stand at 40%. same site to complete the load-out of the
an annual capacity of 184,000 tonnes. The The company is set to enter into the joint platform’s topsides.
polypropylene facility was commissioned on ventures after the polypropylene facility is During the campaign the company
July 18, 2018. Exports of its polypropylene put into operation. deployed 24,600 tonnes of load cells, four
started three months later. Dmitry Konov, chairman of the 600-tonne strand jacks and two hydraulic
management board at SIBUR Holding, breakout jacks.
said: “The launch of new facilities will also The Garagol Deniz Drilling Platform
Liquid cargo back on track boost domestic polymer consumption is set to start service before the end-
in Kazakhstan and other member states
2020. The platform is designed to operate
for Georgian Railway in H1 of the Eurasian Economic Union and automatically without the need for onboard
staff.
improve export potential of high value-
Georgian Railway has released its audited added products thanks to SIBUR’s existing
H1 results. Investment bank Galt&Taggart infrastructure and competencies.”
assessed the outcome. Alik Aidarbayev, chairman of the Azerbaijan ups export of oil
The company generated $83.6mn (+3.4% management board at KazMunayGas,
y/y) in revenue and $38.2mn (+3.3% y/y) added: “KazMunayGas has been via northern route by 2.3
in adjusted EBITDA in H1. Growth was commissioned by the Kazakh government
mostly driven by increased revenue from to develop a national petrochemicals times
the sale of scrap (+$3.3mn) as well as higher industry. This year, in the run-up to
freight transportation revenue (+$1.6mn). the 30th anniversary of the country’s The State Oil Company of Azerbaijan
Also in H1, GR managed to bring back independence, we are completing the (SOCAR) increased oil exports via the
liquid cargo transportation volumes. construction of a polypropylene facility Baku-Novorossiysk pipeline to 754,000
They hit the highest level seen in six scheduled for launch in early 2022. With tonnes in January-September, up by 424,000
years. GR transported 2.1mn tons of oil the next step being the polyethylene project, tonnes or 2.3 times year on year, according
products in H1, up 46.7% y/y, boosted by we believe SIBUR to be a reliable partner to the company.
transportation volumes from Turkmenistan possessing the necessary expertise and For October, the plan is to export
and Azerbaijan. technology. Moreover, this cooperation 170,000 tonnes of crude oil via this route
On a negative note, GR’s dry cargo will enable Kazakhstan to enter new sales to the Russian Black Sea destination for
transportation, which makes up 65% of total markets.” further distribution, SOCAR said.
transportation volumes, declined by 3.2% The national oil company and Transneft
y/y in H1. Passenger transportation, which have a signed agreement for the transit of
was the hardest hit revenue category for Kashagan oilfield to boost more than 1mn tonnes of oil through the
GR during the pandemic, remained under Baku-Novorossiysk pipeline in 2021.
restrictions for some part of Q1, however output to 500,000 bpd in SOCAR transported 613,290 tonnes
positive trends were observed from Q2. through the pipeline in 2020 and plans to
Furthermore, freight handling and freight 2022 after upgrades export 1.2mn tonnes via this route in 2022.
car rental, which together accounted for
20% of 2020 revenue, continued declining Kazakhstan's giant Kashagan oilfield is
in 1H, down 15.8% y/y to $13.0mn. to expand production to 500,000 barrels

Week 41 13•October•2021 www. NEWSBASE .com P17