Page 11 - FSUOGM Week 23 2022

FSUOGM COMMENTARY FSUOGM

said. “Otherwise we have problems opening let- Looking ahead, Kazakhstan’s energy ministry
ters of credit.” predicts that the country’s production of oil and
Kazakhstan may also gain from fetching condensate will increase by 7% in July compared
a higher price for its oil. Urals’ historic dis- with the projection for this month, amounting to
count to Brent and other oil benchmarks has 1.72mn bpd.
widened significantly since Moscow started Production in June and July will continue to
its invasion of Ukraine. It is now selling at a be affected by planned repairs at the Kashagan
30% discount to Brent, after dropping 23% oilfield in the Caspian Sea. The field was shut
in value from mid-February, even as Brent down completely on June 1 and will not resume
has surged in value and now touches $120 flow until July 15. Kashagan supplied 20% of
per barrel. Kazakhstan’s liquids supply from January to the
Kazakh oil exports via Russia have also been end of April.
limited since late March because of damage to Kazakhstan’s oil quota under OPEC+ com-
mooring units at the Novorossiysk oil terminal mitments will increase to 1.68mn bpd in July,
caused by a storm. Only on May 25 did the ter- from 1.655mn bpd in June, under a decision
minal’s operator confirm that repair work had taken by the oil cartel at their monthly meeting
been fully completed and all three mooring units on June 2. This quota does not cover condensate
were working normally. flow, however. ™

PIPELINES & TRANSPORT

SOCAR eyes investment of $100mn

in Pakistan's LNG sector

PAKISTAN SOCAR has offered to invest $100mn in the various fields. “Partnership in the oil and gas
development of the liquefied natural gas (LNG) sector can be extended to other sectors such as
Talks covered the sector of Pakistan, according to the Associated tourism. Azerbaijan wants to transform frater-
construction of an LNG Press of Pakistan. According to the agency, the nal relations into economic ties along the lines of
terminal. issue was discussed at a meeting between Azer- Turkish-Azerbaijani relations,” the news agency
baijani Ambassador to Islamabad Khazar Far- emphasises.
hadov and Pakistani State Oil Minister Musadiq "Pakistan's huge potential in the oil and gas
Malik on 3 June. exploration sector and its decision to explore
"During a meeting with Malik, the ambas- ways and means to strengthen cooperation in
sador unveiled SOCAR's investment proposal this regard was also discussed," the news agency
regarding the LNG sector, including the creation wrote. Malik assured of his full support for the
of a terminal, the provision of short-term loans working groups on energy and said that a per-
and a deferred payment mechanism," the agency son responsible for all issues of cooperation in
reported. “With the growing energy needs of the the energy sector would be appointed from the
country, such investments and partnerships rep- oil division.
resent a huge opportunity,” said the minister, as Farhadov on Twitter called the meeting with
quoted by the news agency. Malik fruitful. "We discussed the prospects for
During the meeting, the parties focused on bilateral relations between Azerbaijan and Paki-
strengthening relations between the two coun- stan, in particular, investment opportunities in
tries and expanding areas of cooperation in the energy sector," he tweeted. ™

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