Page 12 - FSUOGM Week 47 2021

FSUOGM NEWS IN BRIEF FSUOGM

EASTERN EUROPE CENTRAL ASIA & SOUTH Agreement (PSA) was signed in Baku
on 4 June 1996, between SOCAR and a
EU to make Poland-Ukraine CAUCASUS consortium of foreign companies. It was
ratified by the parliament and became
pipeline project a priority, Kazakhstan again draws effective on 17 October the same year.
The Shah Deniz PSA was initially signed
modernise hospitals in only domestic interest in for 30 years, and in December 2013, it
was extended up to 2048. Shah Deniz
Ukraine oil, gas acreage offered in participating interests are: BP (operator –
28.8%), TPAO (19%), PETRONAS (15.5%),
The oil pipeline project between Poland online auction AzSD (10%), LUKOIL (10.0%), NICO
and Ukraine has been included in the (10%) and SGC Upstream (6.7%).
proposals of the European Commission on Once more, only domestic interest was The Shah Deniz field was discovered
priority energy projects of infrastructure drawn by a Kazakh online auction of in 1999. It lies in water depths between
interconnection for 2021-2027. The exploration and development rights to oil 50 meters and 600m, some 70 kilometres
Adamovo-Brody pipeline will connect and gas acreage. southeast of Baku. The field has a reservoir
Ukrtransnafta in Brody (Ukraine) to the In terms of 14 blocks offered last week depth of more than 1,000m and is 22km
Adamovo Reservoir Park (Poland). via an online bidding system—including long. Shah Deniz is one of the largest gas
Elsewhere, the Ministry of Community blocks adjacent to the giant Chevon-led fields in the world, stretching out over 140
and Territorial Development of Ukraine Tengiz oilfield development—the largest bid square kilometres and with approximately
signed a grant agreement with the EIB for was placed for the Atanat block in Atyrau 1 tcm of gas and 2bn barrels of condensate
the thermal modernisation of hospitals in oil region. initially in place.
Ukraine, announced Prime Minister Denys HTS Exploration, headquartered in
Smyhal. The grant from EIB will provide Kazakh capital Nur-Sultan, said it would
€300mn to improve energy efficiency pay nearly KZT 636mn ($1.5mn) for the Kazakh oil and gas
measures in hospitals, particularly for block, the Kazakh Energy Ministry said.
installing modern energy-efficient HTS also won the Alashkazgan block in condensate output down
equipment, ventilation and lighting Aktyubinsk, for a commitment bid of
systems, and internal heating in healthcare almost KZT225bn. 2% y/y in Jan-Oct
institutions. The auction's second largest bid was of
KZT 478mn. It was placed by an unknown Kazakhstan's oil and gas condensate
operator in Kazakhstan, Enerplus. It has no production in January-October fell 2% from
US slaps sanctions on 2 connection to the US-based explorer of the a year earlier to 70mn tonnes, data released
on November 19 showed.
same name.
ships, company building N committed to pay 51mn tenge for November 2 that it supported plans to
Also in the latest auction, Ertis
Kazakhstan’s energy ministry said on
Stream 2 Priirtyshky, a large block located in continue gradual increases in oil output
Pavlodar region.
announced by the members of the global
The US has introduced sanctions against OPEC and non-OPEC pact, Reuters
two vessels and one company affiliated with previously reported.
Russia that participate in the Nord Stream 2 Shah Deniz 2 starts The country's oil production quota under
gas pipeline project, State Secretary Antony the global OPEC+ pact was set at 1.540mn
Blinken said on November 22. production from fifth well barrels per day (bpd) for November.
"The Department of State has submitted OPEC+, consisting of OPEC members
a report to Congress pursuant to the on North Flank and other major oil producers such as
Protecting Europe’s Energy Security Act of Kazakhstan and Russia, agreed to cut oil
2019 (PEESA), as amended,” he said in a Lukoil has undertaken to drill a well as output in April 2020 by 9.7mn bpd. The cut
statement. part British oil company BP, the operator was later gradually relaxed.
“The report lists two vessels and one of the Shah Deniz gas condensate field, has
Russia-linked entity, Transadria Ltd., commissioned another well, bringing the
involved in the Nord Stream 2 pipeline. total production capacity of the Shah Deniz Fitch affirms SOCAR's rating
Transadria Ltd. will be sanctioned under 1 and 2 offshore infrastructure to almost 25
PEESA, and its vessel, the Marlin, will be bcm/y. BP released a statement that this is at 'BB+'
identified as blocked property," the fifth subsea well drilled on the northern
The name of the other ship was not flank of the field. A total of 22 wells have The international rating agency Fitch
disclosed. been drilled within Shah Deniz 2, BP said. Ratings has affirmed the rating of the State
Russian Ambassador to Washington In July 2021, the daily productivity of Oil Company of Azerbaijan (SOCAR) at
Anatoly Antonov said that the new the "Shah Deniz Bravo" platform (stage 2) "BB +" with a stable outlook, according to
sanctions were signs of unfair competition. reached the level of Shah Deniz Alpha for the latest statement on November 19.
"We see all attempts to counteract the first time. During the first three quarters "State Oil Company of the Azerbaijan
Russian oil and gas export to Europe as of the year, the field produced about 16 Republic (SOCAR) is fully owned by the
unfair competition undermining the free bcm of gas and about 3mn tonnes (about 24 state and its rating is equalised with that
market principles," he said.. million barrels) of condensate. of Azerbaijan ('BB+/Stable') under Fitch
The Shah Deniz Production Sharing Ratings’ Government-Related Entities

P12 www. NEWSBASE .com Week 47 24•November•2021