Page 14 - FSUOGM Week 06 2020

FSUOGM
FSUOGM
interview to Ukrainian television channel Ukraina 24 broadcast late on February 10.
Arbitration in the Hague until the end of February, CEO Andrei Kobolev said in an interview to Ukrainian television channel Ukraina 24 broadcast late on February 10.
“Arbitration acknowledged Russia as the guilty side in Naftogaz’s loss of assets in Crimea,” he said.
“After the victory, we have to pass a second stage when we submit calculation of the cost of the assets. We will submit a final estimate to the court in February. Our approximate final estimate of the losses is close to $8bn.”
Naftogaz previously owned Crimean natural gas company Chernomorneftegaz, but it was nationalized in March 2014
when Crimea joined Russia. The Ukrainian holding and six its affiliates filed the suit to the Hague court in October 2016 basing
its claims on a 1998 investment protection agreement between Russia and Ukraine. In March 2019, Kobolev said that the company won the suit.
Moscow has been denying legitimacy of the suit of Ukrainian banks and companies against the Crimean assets as the arbitration courts have no jurisdiction to hear these cases.
Kobolev also said that the company
was ready to discuss prolongation of the natural gas transit contract with Gazprom. If Ukraine adopts the European regulations fully, conditions of the new contract may be better than now, he said.
February 11 2020
CENTRAL ASIA & SOUTH CAUSASUS
Global Yatirim Holding’s
Naturelgaz to buy Socar‘s
Turkish LNG unit
Naturelgaz has signed an agreement to purchase 100% of SOCAR Turkey LNG, Global Yatirim Holding announced on February 6.
After the share transfer, Naturelgaz and Azerbaijani state-controlled company SOCAR Turkey LNG will be merged under Naturelgaz, Global Yatirim Holding, parent company to the enterprise set to be acquired, said in a filing with Borsa Istanbul.
Naturelgaz, a 95.5%-owned subsidiary of Global Holdings, is one of the leading
CNG (compressed natural gas) suppliers and distributors in Turkey and Europe.
The acquisition will further strengthen the position of Naturelgaz in the LNG, bulk CNG, and auto-CNG businesses, increasing volume and geographical coverage while diversifying the product portfolio, Global said.
Currently, the infrastructure of Naturelgaz consists of 10 bulk CNG plants, three auto- CNG stations, 296 CNG road tankers and 47 industrial-scale compressors.
“Post-acquisition the infrastructure will enlarge to 12 bulk CNG plants, 11 auto-CNG stations, 345 CNG road tankers and 67 CNG compressors, with expansion coming from new regions,” Global added.
In 2019, Naturelgaz distributed 167mn
Sm3 of CNG, while SOCAR Turkey LNG distributed 35.4mn Sm3 of CNG and LNG, according to Global.
bne IntelliNews, February 6 2020
BP, SOCAR to hold talks
with Uzbekistan on PSAs in
February
Executives from BP and Azerbaijan’s Socar will visit Uzbekistan in February to hold talks on potential production sharing agreements (PSAs) for the development
of local hydrocarbon deposits, the Uzbek energy ministry said on February 5.
No other details were provided in the statement.
Uzbekistan annually produces around 60bn-65bn cubic metres of gas and exports some of it to China and Russia. The country is interested in attracting foreign investment to further develop its large natural gas reserves. Officials are in talks with the two companies on three contract territories in its western Ustyurt Region.
Last year, BP and Socar signed agreements on the exploration of investment blocks in Uzbekistan.
Socal also has an agreement on an enhanced oil recovery project in Uzbekistan’s Garbiy Tashli, Sharkiy Tashli, Shimoliy Shurtan and Garmiston fields.”
bne IntelliNews, February 6 2020
Azeri gas production to rise but oil output to fall: Socar
Azerbaijan reportedly plans to increase natural gas production this year but slightly reduce oil production due to the level of
existing reserves.
Vice president of state energy company
Socar Yashar Latifov outlined the plans in an interview with Reuters on February 10. The country planned to produce 38.4bn cubic metres (bcm) of gas this year, up from 35.6 bcm last year, and 36.5mn tonnes of oil, down from 37.5mn tonnes in 2019, he said.
SOCAR extracts most of its oil from the Azeri-Chirag-Guneshli (ACG) fields together with foreign partners led by BP, which is also involved in natural gas production at the huge Shah Deniz field in the Caspian Sea.
“Our task is to ensure stable oil production in the coming four to five years, and then a controlled decline, which will be managed by the planned expansion of exploration work at new and existing fields,” Latifov was cited as saying.
It was anticipated that new drilling activity at Bulla-Deniz, West Absheron, Pirallahi, Bank Darvin and some onshore sites would keep oil production stable, he said.
The start of production at Absheron is expected in mid-2021 and its reserves could exceed an estimated 300 bcm, allowing output at a plateau level of 5 bcm per year, Latifov was also quoted as saying.
bne IntelliNews, February 11 2020
Uzbekneftegaz finishes
drilling two oil wells at
Shimoliy Berdak field
Uzbek state run oil and gas company Uzbekneftegaz has announced that drilling work has been completed at two wells at Shimoliy Berdak field, UzDaily news agency reported.
As a result, a daily inflow of natural gas
in the amount of 50,000 cubic metres was discovered at the two wells, labelled 83 and 84.
Work is currently under way to connect the wells to the gas manifold in order to supply the gas to the Sharkiy Berdak gas treatment plant.
The drill works were carried out by the Ustyurt gas production department, the report said.
bne IntelliNews, February 11 2020
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Week 06 12•February•2020