Page 13 - FSUOGM Week 47 2021

FSUOGM NEWS IN BRIEF FSUOGM

(GRE) Rating Criteria," Fitch said. Georgia has sharply increased imports from LUKOIL and KazMunaiGas
The rating agency rates the status, Azerbaijan in the same timeframe. Georgia
ownership and control and maintains the imported 204179 tonnes of oil worth sign agreement in principle
accounting factors, as well as the socio- $113mn. The value of oil increased by
political and financial implications of the $62mn or 2.22 times in annual terms, and for Kalamkas-Sea and
GRE default as “strong”, giving a score of 30. the volume increased by 37045 tonnes
"As the long-term Issuer Default Rating or 22.6%. In contrast, Georgia imported Khazar Project
(IDR) reflects the combination of the 167,133.82 tonnes of oil from Azerbaijan
strength of state linkage and SOCAR’s worth $50mn in 2020. Russia’s LUKOIL and Kazakhstan’s state-run
standalone credit performance (SCP), a oil and gas group KazMunaiGas (KMG)
deterioration of the SCP on a sustained have signed an agreement in principle for
basis may result in the long-term IDR Belgian and Swedish courts the Kalamkas-Sea and Khazar Project,
being notched down from that of the Vestnik Kavkaza reported, citing KMG.
sovereign. Most oil and gas projects in issue contradictory rulings The two companies already jointly
Azerbaijan operate under production- participate in a number of projects,
sharing agreements, in which SOCAR has a on $545mn award against including at the Karachaganak, Tengiz,
minority stake and where it also represents Al-Farabi and Zhenis fields, the Caspian
the state and is involved in marketing Kazakhstan to Moldovan Pipeline Consortium as well as in joint
the latter’s share of crude oil and gas. In ventures for the development of the
addition, SOCAR has stakes in some other investors Khvalynskoye and Central fields.
major energy projects promoted by the The document envisages further
state, such as the Southern Gas Corridor A Belgian court on November 16 ruled that negotiations between KMG and LUKOIL on
(SGC)," the statement says. a $545mn Energy Charter Treaty award defining the concept, details and conditions
Fitch expects SOCAR's earnings to against Kazakhstan cannot be enforced, for a joint field development, the report
rebound in 2021 on stronger international concluding that Moldovan investors said.
oil prices and increased regulated fuel prices Anatolie and Gabriel Stati obtained The agreement was signed during
since January 2021: "We expect funds from it through fraud, Global Arbitration a meeting between the chairman of
operations (FFO) net leverage to remain Review reported on November 17. the management board of KMG Alik
below 5x in 2021-2024, materially below However, on November 18, Sweden’s Aidarbayev and the president of LUKOIL
our 6x downgrade sensitivity, and in line Supreme Court issued a ruling favouring Vagit Alekperov on November 16.
with the ‘b+’ SCP. Supportive Business the Moldovan creditors’s enforcement In 2013, North Caspian Operating
Profile: SOCAR’s ‘b+’ SCP considers its high efforts, Law360 reported. Company (NCOC), the operator of the
leverage, but also its fairly high production Kazakhstan has refused to pay the Kashagan oil field, announced a commercial
of 277,000 barrels of oil equivalent (boe) per final and binding award to Tristan discovery at Kalamkas Sea. Geological
day and robust oil proved reserve life of 12 Oil’s owners since 2013. The award was reserves at the Kalamkas Sea oilfield were
years," the agency added. made in compensation for the country’s reportedly estimated at about 150mn
alleged “harassment campaign and illegal tonnes and 15bn cubic metres (bcm) of gas.
expropriation of assets”. It has since been However, NCOC, including energy giants
Georgia reduces gas recognised across multiple jurisdictions such as Eni, ExxonMobil, Shell, CNPC,
including the US, Sweden, France,
Total, Inpex, and KazMunayGas, all pulled
imports, increases oil Luxembourg, Italy and the Netherlands. out of the Kalamkas Sea project. The latest
Anatolie Stati, who claims his
developments promise to nurse the project
imports from Azerbaijan investments in Kazakhstan were illegally back to life.
nationalised, is the CEO and sole

According to the Georgian National shareholder of Ascom Group, one of the
Statistics Office (GEOSTAT), the country award creditors. Uzbek energy minister
imported 1mn tonnes of gas from Kazakhstan has accused Stati of
Azerbaijan worth $162mn in 10M21. defrauding both the former Soviet republic provides details of $2.5bn
The value of gas imported from and the Swedish arbitrators who initially
Azerbaijan decreased by $41mn or 20.4% ruled in his favour in 2013, charges the gas-chemical complex
annually, and the volume decreased by Moldovan investor and his companies deny.
191,797.78 tonnes or 15.05% in the same Further upping the stakes, in a lawsuit Uzbekistan’s Energy Minister Alisher
timeframe. Georgia imported 1.3mn tonnes filed in the Supreme Court of the State Sultanov has unveiled the details of a
of gas from Azerbaijan worth $204mn in of New York, Nur-Sultan has accused $2.5bn MTO-based (methanol-to-olefin-
2020. Overall Georgia imported a total of Chapman and his companies of “conspiring based) gas-chemical complex, expected to
$235mn worth of gas abroad in 10M21, with, and aiding and abetting, a fraudulent commence operations in 4Q 2023.
which is 1.5% less than 2020. Thus, scheme” led by Stati. The project will provide Uzbek industry
Azerbaijan's share in Georgia's gas imports with olefinic hydrocarbons, a vital raw
during the reporting period was 69.06%. material. The core MTO technology has no
When it comes to oil, on the contrary, direct competitors in the CIS region.

Week 47 24•November•2021 www. NEWSBASE .com P13