Page 16 - EurOil Week 08 2023

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Latvian Government turns down Petrom, which managed to organise its Slovakia.
The first issue was pointed out by OMV
Late in January, RTVS reported that
Skulte LNG terminal developer’s operations so as to bypass the provisions Eustream lost 87% of its profits from August
of the Regulation, which is applicable only
to December 2022. Eustream’s profit in that
requests to companies deriving at least 75% of their period was €17mn, while it was €131mn in
the corresponding period in 2021.
revenues from the activities covered by the
The three-party Latvian cabinet rejected solidarity contribution. The steep drop in profits comes as a
the terms of the project proposed by Skulte The European Commission hasn’t yet result of decreased flow of Russian gas.
Liquefied Gas Terminal developer AS Skule responded to the Romanian government “Currently, the company [Eustream] is
LNG Terminal and its strategic investor, the regarding whether it can still charge the transporting approximately 32mn cubic
Ministry said, Eng.LSM.lv, part of Latvian solidarity contribution on OMV Petrom, meters [m3] of natural gas,“ Eustream
Public Broadcasting, reported on February the country’s largest operator in the sectors member of the board Miroslav Bodnar was
22. targeted by the solidarity contribution. quoted as saying by RTVS in January.
On January 24 this year, the Cabinet
ordered KEM to undertake an in-
depth assessment of the conditions for Slovak gas pipeline utility Albanian police seize ship
cooperation on the project for the Skulte
LNG terminal from the developer AS Skulte spared windfall tax suspected of sanctions busting
LNG Terminal.
The investor requested State guarantees The Slovak parliament has approved The Albanian authorities took control of
– namely, compensation for losses if such a modified version of the windfall tax a Liberian-registered vessel suspected of
occurred. legislation by a majority of 81 deputies carrying oil from Russia near the coastal
After receiving additional information, in the parliament of 150. The parliament city of Durres on February 20, a statement
which provided more detailed information thus upheld the veto of President Zuzana from the Albanian State Police said.
on the infrastructure, capacity and costs of Caputova, with which she objected to Police said it had been suspected that the
the project, the Ministry concluded that the imposing special taxation on the Slovak gas oil shipment was originally from Russia.
specific conditions of project cooperation transmission company Eustream approved The vessel had departed from Azerbaijan,
cannot be supported, mainly due to the in the previous version of the legislation in and is then believed to have been loaded
extent of their regulatory advantages and December. with oil at the port of Kalamata, Greece,
guarantees, KEM said. Eustream welcomed that from another vessel.
Previously, Prime Minister Kirsjanis parliamentarians took into account Albania has joined sanctions against
Karins (New Unity) had stated that if a Caputova’s objections. “We consider it a Russia imposed by the EU and other
private investor for the construction of the responsible decision not just in relation to Western countries, in response to the
Skulte LNG terminal asked for unacceptable a strategic company but also in relation to invasion of Ukraine.
guarantees, the State could build the the predictability of the Slovak business The ship, which was transporting around
terminal itself, Eng.LSM.lv said. environment,” Eustream’s specialist for 22,500 tonnes of oil, was seized by the
external communication Pavol Kubik police, along with its crew of 22. The market
was quoted as saying by the Slovak public value of the seized oil is estimated to be
BSOG asks Romania to amend broadcaster RTVS. over €40mn.
In January, Caputova’s spokesperson
“[B]ased on reasonable suspicions
solidarity contribution Martin Strizinec told local media that the that this amount of oil originated from
sanctioned countries and was smuggled,
law approved in December could threaten
Black Sea Oil and Gas (BSOG), the the financial stability of the company and since no proper documentation was
company controlled by Carlyle investment energy stability in Slovakia and the region. available, it was seized along with the
fund that began producing gas at its Midia “The legislature did not take into account captain’s navigation documentation,”
offshore perimeter in mid-2022, has asked these threats nor did it offer alternative the statement added. An investigation is
the government of Romania to amend the solutions for dealing with this potential ongoing.
national implementation of its solidarity impact,” Caputova’s statement read. The operation, named ‘Embargo’.
contribution. The Slovak state is a 51% shareholder in was carried out by numerous Albanian
The company argues that the solidarity Eustream through its gas distribution utility institutions: the local Durres police,
contribution introduced by Romania to Slovensky plynarensky priemysel (SPP). the Directorate for the Investigation of
implement a Recommendation of the The remaining 49% shareholder is Central Economic and Financial Crime in the
European Commission fails to properly European energy conglomerate EPH of Criminal Police Department of the State
address the case of companies starting Czech billionaire Daniel Kretinsky and his Police, the Border Police of the Port of
operations subject to the contribution Slovak business partner Patrik Tkac, who is Durres, the Anti-Smuggling Directorate,
during 2022. also a partner in the Slovak financial group the customs authorities of the port, the
Under the current provisions, a 60% J&T. EPH has managerial control over coast guard and the captaincy of the Port
supplementary contribution would be Eustream. of Durrës, under the direction of the
levied on BSOG’s entire profit derived last Eustream’s pipeline infrastructure Prosecutor’s Office at the Durrës Judicial
year – as opposed to the profit above 120% has been vital in distributing gas from District Court.
of the average profits recorded in past years Russia and CIS countries to Slovakia,
by other companies that have operated Hungary, Austria, and Czechia since the
continuously. 1970s. According to its website, it owns OMV Petrom reportedly late in
This is the second issue identified and operates a 2,332 km long gas transit
by Romanian companies as regards the corridor in Slovakia. Since 1972 it has filing filed required documents
Regulation drafted and enforced by the secured the transmission of more than 2.3
European Commission last October. trillion cubic meters of natural gas across

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