Page 12 - FSUOGM Week 45 2022

FSUOGM POLICY FSUOGM

Russia jacks up tax

on LNG exporters

RUSSIA RUSSIA has increased the tax rate for LNG September that the finance ministry was con-
exporters in order to replenish its shrunken sidering a hike in taxes on all energy exports,
Russia is eager to budget funds that have been expended on the targeting an extra RUB1.4 trillion ($50bn) in rev-
replenish its funds by invasion of Ukraine and hit by the impact of enues in 2023. The tax on LNG deliveries alone
extracting more from sanctions and other political fallout from the war. is projected by the ministry to bring in an extra
the already overly-taxed The Russian parliament’s committee on RUB200bn ($3.25bn) in government revenues
oil and gas sector. budget and taxes approved an amendment to the next year.
tax code that will increase the tax rate from 20% Russian oil and gas companies already face
to 34%, with the measure to be applied between one of the largest tax burdens on the industry
2023 and 2025. However, it will only apply to in the world, and so the further increases could
companies that began exporting LNG before the stifle investment in new projects. Those same
end of this year. It will therefore affect the Gaz- companies have been supported by higher inter-
prom-run Sakhalin-2 project in the Far East and national prices over the past year and are enjoy-
the Novatek-led Yamal LNG terminal in the Arc- ing record profits, but have already seen their
tic. Smaller projects such as Gazprom’s Portovaya export volumes dip as a result of sanctions and
LNG plant and Novatek’s Cryogas-Vysotsk plant Western buyers refusing to purchase. The fact
in north-west Russia would also be affected. that the ruble has been kept strong under strict
The approval of the increase comes after government controls, in spite of the crisis, has
Russia’s Kommersant newspaper reported in not helped matters. ™

NEWS IN BRIEF

Kazakhstan expects CPC to retained its forecasts for the production of block and the Shah Deniz field in January-
October amounted to $9.535bn, which is
liquid hydrocarbons (LH) in Azerbaijan
complete repairs of one mooring for 2022-2023, according to the agency's 190% higher than the same period in 2021,
monthly forecast data.
the fund said in a report.
point in 2-3 days production of liquid hydrocarbons in Azerbaijan's profitable oil from the ACG
According to EIA estimates, the
SOFAZ's revenues from the sale of
Kazakh Prime Minister Alikhan Smailov Azerbaijan in 2022 will amount to 0.67mn block was $8.326bn in January-October
said on November 10 that Kazakhstan is b/d (October forecast - 0.67mn b/d). At the (an increase of 180%). In addition, the
expecting the Caspian Pipeline Consortium same time, production in 1Q2022 amounted total revenues of SOFAZ from the sale of
(CPC) to complete repairs to one of the to 0.7mn bpd, in Q2 was 0.67mn bpd, in Q3 profitable gas and condensate produced
mooring points at Russia's Black Sea was 0.65mn bpd, and in Q4 will amount to from the Shah Deniz field in January-
terminal in Novorossiysk within two to 0.66mn b/d. October equalled $1.209bn (an increase of
three days. According to EIA forecasts, the 260%), including revenues from the sale of
That would still leave one more mooring production of liquid hydrocarbons in condensate amounting to $328.567mn.
point awaiting repairs. Azerbaijan in 2023 will be 0.64mn b/d. At The contract for developing the Azeri,
At the same time, Kazakhstan continues the same time, oil production in the 1Q2023 Chirag and deepwater Gunashli fields was
to plan out ways to ease its dependence will amount to 0.65mn b/d, in Q2 will be signed on September 20, 1994, and entered
on the pipeline crossing Russia for the big 0.64mn b/d, in Q3 will be 0.63mn b/d, in into force on December 12 of the same year.
majority of its oil exports. Q4 will be 0.64mn b/d. This agreement expires in 2024. However,
As such, Kazakhstan plans to ship 1.5mn According to the updated data of the on September 14, 2017, a new contract
tonnes of oil a year via the Baku-Tbilisi- EIA, in 2021, the production of liquid for the development of the ACG block,
Ceyhan (BTC) pipeline starting from 2023. hydrocarbons in Azerbaijan amounted to calculated until 2050, was signed in Baku.
The volume will gradually be increased to 0.72mn barrels per day. Investments under the new agreement are
6-6.5mn tonnes, Smailov said.. estimated at $43bn for the period up to
2050. The oil production volume is planned
SOFAZ inceased revenues from to be more than 500mn tonnes.
Azerbaijan will produce 0.67mn the sale of oil, gas from ACG, British BP (project operator) is 30.37%,
Under the new contract, the share of
b/d of liquid hydrocarbons in Shah Deniz in Jan-Oct by 190% SOCAR (25%), Hungarian MOL (9.57%),
American ExxonMobil (6.79%), Indian
2022-2023, says EIA Revenues to the State Oil Fund of Azerbaijan ONGC (2.31%), Japanese Inpex Corp. (9.31%)
and ITOCHU Oil (3.65%), Norwegian
The Energy Information Administration (SOFAZ) from the sale of profitable oil and Equinor (7.27%), Turkish TPAO (5.73%).
of the US Department of Energy (EIA) has gas from the Azeri-Chirag-Guneshli (ACG)

P12 www. NEWSBASE .com Week 45 14•November•2022