Page 17 - EurOil Week 03 2021

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OMV Petrom will publish its financial for many years over the ownership the East Irish Sea and the Barrow onshore
results for Q4 and the full year on February structure of GA-MA, also committed to gas terminal on the northwest coast of
4, 2021. withdraw all pending court proceedings in England.
The company recorded a net loss of relation to the dispute. John Cowie, Morecambe Hub Asset
RON41mn (€8.5mn) in Q3 as sales declined The end of the dispute will open the way Director at Spirit Energy, said: “The
by one quarter y/y in value terms, according for the unbundling of the gas transmission Morecambe Hub has produced gas for the
to the quarterly results released on October system operator that is expected to be UK for more than 30 years, and remains a
28. finalised by the end of 2021. key asset in our portfolio as we continue
The company thus reported its first The parties had agreed to the resolution to maximise economic recovery from the
quarterly losses since 4Q15. Current low of the dispute in November 2019, during a area.
oil and gas prices pushed down operational mediation session in Vienna. The dispute “There is still more we can do to extend
results, but the outlook for subdued long- was mediated by Dirk Buschle of the Morecambe’s field life while reducing
term prices prompted a revaluation of the Energy Community secretariat. its emissions and contribute to the UK’s
company’s reserves with a negative impact on According to media in Skopje, the Net Zero targets, and we look forward
the bottom line. government will pay €32mn to Makpetrol to working with Wood on both of these
The average price of crude oil during to buy 50% of GA-MA shares.. goals.”
Q4 was $37.22 per barrel, $1 more than in The contract will employ approximately
3Q20, but a massive $17.2 or 31.6% less than 130 people across the offshore assets and
in 4Q19. This will add to the lower output, Plinacro, BH-Gas agree onshore terminal and a small support team
further depressing company’s quarterly in Aberdeen.
financial results. connection point for gas link
On the Downstream Oil side, the refining
margin in Q4 was $2 per barrel, double the Croatian natural gas transmission operator Altus, Archer win Equinor
level in the previous quarter, but less than Plinacro and Bosnia & Herzegovina’s BH-Gas
half that recorded in Q4 2019 ($4.64/bbl). have agreed on the connection point for a gas wireline work
The utilisation rate of the Petrobrazi interconnector to link the gas transmission
refinery went up to 96% in Q4, from under systems of the two countries, Plinacro said in Norwegian energy giant Equinor has awarded
90% in Q2 and Q3. a press release. Altus Intervention and Archer Integrated
The total sales of refined products reached The connection of the gas networks Services framework contracts for supplying
1.27mn tonnes in Q4, 2020, down 9.9% from of the two countries should diversify integrated wireline services within well
the same period last year. routes and sources of natural gas for intervention to Equinor’s fixed platforms.
In the Downstream Gas segment, gas Bosnia through the liquefied natural gas Altus Intervention will provide services
sales to third parties were 10.62 TWh, down (LNG) terminal on the island of Krk and at the Gina Krog, Grane, Gudrun, Johan
37.9% compared to 4Q19. the future Ionian-Adriatic gas pipeline, Sverdrup, Kvitebjørn, Oseberg, Martin
OMV Petrom is the company with the increasing natural gas transit through Linge, Sleipner, Valemon, Veslefrikk,
highest capitalisation on the Bucharest Stock Croatia. Heidrun, Snorre and Visund facilities.
Exchange (BVB) — €4.63bn as of January 14. In July 2020, the two companies Archer Integrated Services will provide
signed a memorandum of understanding services at the Gullfaks and Statfjord
to extend works on linking the gas platforms.
North Macedonia, transmission systems of the two countries contracts is close to one billion NOK
The estimated total value of the
by three more years.
Makpetrol near end to gas deliver gas not only to Croatian customers per year (around $117 million), and the
The Krk project is anticipated to
contracts are awarded for a fixed period of
dispute but potentially others in Hungary, Italy, around five years from May 2021.
The contracts include three two-year
Montenegro, Serbia and Slovenia. Its
North Macedonia’s government and local €234mn ($266mn) cost is partially covered extension options. Optionality for wireline
fuel retailer Makpetrol are close to ending by a €101mn grant from the European services to other areas, such as mobile
a dispute that has paralysed the gas sector Commission, which has listed it as an EU units, are also included.
for the last 23 years, the Energy Community project of common interest (PCI). The Krk The new intervention contracts will
announced on January 15. LNG terminal will have a capacity of 2.6bn cover a total responsibility for wireline
The parliament in Skopje endorsed a cubic metres of natural gas per year as of intervention services. Separate contracts
law on December 28, 2020, that authorises 2021. used to be awarded for cable and
the government to sign an agreement mechanical services, perforation, logging
that will resolve the dispute between the as well as tractor and electro-mechanical
government and Makpetrol, which is also Wood, Spirit Energy extend services. All these services will now be
50% owner of GA-MA, a company that covered by the integrated wireline services,
operates as a transmission system operator Morecambe gas fields and the suppliers have formed alliances
across the North Macedonia-Bulgaria to be able to offer complete deliveries,
border. The other 50% of GA-MA is owned Energy services giant Wood has won a Equinor explained.
by the state. contract with oil firm Spirit Energy to Altus is collaborating with Baker
“Immediately after, a settlement provide late-life solutions for the Morecambe Hughes Norge AS and Archer has formed a
agreement was signed by the parties,” the Bay gas fields, one of the UK’s largest gas collaboration with Welltec Oilfield Services
Energy Community said in the statement. accumulations. AS and Schlumberger Norge AS. Cross-
North Macedonia’s government led by The five-year consolidated services training of employees will be carried out to
PM Zoran Zaev is now entitled to purchase contract is valued at $130mn. Under the enhance the level of competence across the
50% of Makpetrol’s shares in GA-MA and contract, Wood will work to extend field alliances, Equinor said.
become a sole owner of the company. life, lower costs, and reduce late-life carbon
The parties, which have been arguing intensity across the Hub’s offshore assets in

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