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EurOil NEWS IN BRIEF EurOil

Poland awaits Naftogaz’ distribution segment, Ebitda grew 22% y/y its legal options and evaluating potential
Keppel FELS is currently considering
to PLN771mn. Ebitda in generation grew
decision on gas trade with US 4% y/y to PLN416mn. financial impact in consultation with its
Production of oil came in at 325,000
advisors.
In early September 2019, a memorandum on tonnes in the first quarter, growing of 0.3% Keppel FELS has further reserved all
the sale of US gas to Ukraine through Poland y/y. Production of gas, meanwhile, retreated its rights under the contract, including
was signed between Poland, Ukraine and the 2% y/y to 1.16bn cubic metres. the right to retain the instalments already
United States, and now Warsaw is awaiting Poland currently imports most of the received and to seek compensation for
a decision from Ukraine’s state-run oil and gas it consumes from Russia. Warsaw is, the work done to date in the event that
gas company Naftogaz in this regard, Polish however, carrying on with the Baltic Pipe, Awilco defaults in the payment of the June
Ambassador to Ukraine Bartosz Cichocki was which would pump gas from PGNiG’s 9 instalment.
quoted as saying by Interfax Ukraine. Norwegian gas fields via Denmark to Keppel is building one more rig of
“There is a very interesting gas trading Poland. the same design for Awilco and Awilco
business,” he told Interfax Ukraine. “We The pipeline is a key element in Poland’s also has rig independent options for two
agreed on the memorandum between plan to become independent of Russian additional rigs of the same design for
Poland, Ukraine and the United States, supplies by 2022, the year Warsaw’s long- delivery in Q1 2023 and 2024, respectively.
signed by the United States in early term gas contract with Russia’s Gazprom
September 2019 concerning the US gas expires. Poland said it would not seek a
trade to Ukraine through Poland.” renewal of the contract. Wintershall Dea adds more
“However, there are some parallel talks
between Naftogaz and Gazprom, and we time to Energy Swan PSV
[await] the direction [that] the Ukrainian Keppel rejects Awilco’s
company will decide to choose, namely, charter
purchases from Russia or trade through contract cancellation
Poland,” he added. Norwegian offshore vessel operator
As reported earlier, Ukraine’s Norway’s Awilco Drilling has cancelled a Golden Energy Offshore Services (GEOS)
government approved a memorandum with rig construction contract with Singapore’s has secured another contract extension
Louisiana Natural Gas Exports on possible Keppel, which it accused of contractual for its Energy Swan platform supplier
LNG supplies from the United States breaches. But Keppel has rejected the with Wintershall Norge, a Norwegian unit
to Ukraine and the development of gas accusatons and the contract’s termination. of Wintershall Dea.
infrastructure with Poland. Awilco ordered a semi-submersible GEOS said on June 10 that the contract
drilling rig of a Moss Maritime CS60 Eco is in direct continuation of the charter
MW design from Keppel in March 2018. contract from 2013.
PGNiG posts 29.2% y/y net scheduled for delivery in Q1 2021. The chartered for a firm period of four years
The rig, named Nordic Winter, was
The large PSV Energy Swan was in 2013
profit decrease in Q1 order was worth around $425mn. plus optional extensions (total of four years
options).
However, Awilco on June 8 said it had
Net profit at the state-controlled Polish oil cancelled the order due to “breaches of the Wintershall Norge and GEOS agreed
and gas company PGNiG fell 29.2% year contract”. several extensions after the expiration of
on year to PLN779mn (€175.77mn) in the Responding to Awilco’s cancellation, the firm period, last of which was for a
first quarter, the Warsaw-listed company Keppel said on June 9 that Awilco cited firm period until July 31 2020.
said on June 4. certain breaches relating to the project The two companies have now agreed
Impairments of PLN764mn in the management, schedule, resourcing and that the Energy Swan would remain firm
exploration and production segment compliance. on charter in direct continuation of the
weighed down on the net result, the According to Keppel, the notice of present firm period for an additional four
company’s report showed. termination came shortly before the next months until November 30 2020.
The reduced profit comes on the back payment instalment of $31.875mn due According to the company, the charter
of sales falling 4.1% y/y to PLN13.76bn, from Awilco under the contract on June 9, rate reflects the market conditions.
including a fall of 5.8% y/y to PLN10.43bn which was previously deferred in March The two companies also agreed that
in revenue from gas sales. 2020 at Awilco’s request. the charterers continue having options
Ebitda retreated 6.3% y/y to PLN2.08bn Under the terms of the contract, an available to charter the vessel as per the
in January-March, PGNiG also said. effective termination of the contract by original charter until the expiration of this
Broken down by key segments, Ebitda Awilco might entitle it to the return of extension.
in exploration and production collapsed payments already made (approximately
94.5% on the year to PLN71mn affected by $54mn) with interest, or to pay for the
the impairments on hydrocarbon assets in work done by Keppel FELS and take over Equinor tests LNG-fuelled
Poland and abroad. the rig.
In the trade and storage segment, Keppel FELS denies the allegations by shuttle tankers
Ebitda came in at PLN909mn versus – Awilco and has rejected the purported
PLN71mn in the first quarter of 2019. In the termination of the contract. Norway’s Equinor is testing two newbuild

Week 23 11•June•2020 www. NEWSBASE .com P19