Page 15 - FSUOGM Week 20 2022

FSUOGM NEWS IN BRIEF FSUOGM

charged under different formulas — and have opened special accounts in Russian
Russian oil major Lukoil to the price increased significantly when the The State Service for Antimonopoly Policy
and Consumer Market Supervision under
formula changed in April. But there is no
hold 2021 dividends guarantee that the price, based on the cold the Ministry of Economy of Azerbaijan
season formula, will result in a lower price
ordered SOCAR Petroleum CJSC to pay
The board of Russian independent oil in October. AZN27.4mn ($16mn) to the state budget as
major and the country’s second-largest "In the current situation, the tariff must a result of a violation of antimonopoly laws
crude producer Lukoil has recommended be much higher than it is now. Now the On Regulated Prices and On Antimonopoly
postponing payment of the final dividend tariff is calculated from the purchase price Activity.
for 2021, Kommersant daily reported citing of $620 per thousand cubic metres of gas.
the corporate data disclosure portal. In April-May, the actual purchase price A number of individual entrepreneurs
As followed by bne IntelliNews, prior to exceeded $1,100. According to the logic filed a complaint with the service due
Russia's military invasion of Ukraine, Lukoil of the calculation methodology and if we to the fact that oil products purchased
reinforced its investment case of being one act according to the law and the decisions from SOCAR Petroleum are not delivered
of the most valuable Russian oil and gas of the extraordinary situations committee to the addressee. “In the course of the
blue chips in 2019 with the pledge to pay (CSE), we must ask for an increase in the investigation, it was established that
at least 100% of cash flow in dividends and tariff. We propose a biannual tariff, summer SOCAR Petroleum applied unfavourable
by the launch of the second $3bn buyback and winter, to alleviate the pressure on the terms of contracts to buyers and thereby
programme. consumer,” Ceban explained. violated antimonopoly law. In this regard, a
“After 1H21 DPS [dividend per share] “There is no other way out than to case was opened against the company,” the
at RUB340 per share, we estimated about increase the tariff, or the company should information says.
RUB490 DPS for 2H21 (based on generated receive a subsidy from the state," he
free cash flow less interest and leasing concluded.. SOCAR Petroleum was established in
payments and share buyback expenses),” January 2008 and is engaged in the retail
Sberbank CIB estimated. trade of petroleum products, expanding
The analysts suppose that DPS decision Condor provides update on the network of filling stations under the
postponement is moderately negative for SOCAR brand. The company opened the
Lukoil, however, “taking into account Kazakhstan’s first modular first filling stations in Azerbaijan in May
that the company is not able to distribute 2010. The company currently has over
cash equally to all the shareholders, the liquefied natural gas 40 filling stations. The company's filling
possibility of dividend payments delay was stations sell six types of fuel: gasoline AI-
at least partially expected.” facility in Q1 financials 95 Premium, which meets environmental
Last month the CEO of the company standards Euro-4, AI-92 (Euro-2), AI-98
Vagit Alekperov resigned. The company Condor Petroleum, a Canada-based Super (Euro-5), as well as liquefied gas
was founded in 1993 when Alekperov, who energy firm with activities in Kazakhstan, (LPG) and diesel fuel. The company also
had been appointed deputy minister of the among a number of other countries, has owns 11 oil depots in Azerbaijan.
oil and gas industry of the Soviet Union in released its unaudited interim condensed
1990, became its president and chairman. consolidated financial statements for the
Lukoil increased its oil production last first quarter of this year along with related SOFAZ's revenues from the
year to about 1.6mn barrels per day (bpd) management discussion and analysis.
– a level that is just below the output of Provided highlights for the quarter sale of oil and gas from ACG
countries like Qatar and Kazakhstan. One featured the company signing several
of its biggest assets is West Qurna-2 oilfield memoranda of understandings (MoUs) and Shah Deniz exceeded
in Iraq, which produces more than 400,000 with various Kazakh government agencies
bpd. to construct and operate Kazakhstan’s $3.3bn in January-April
first modular liquefied natural gas (LNG)
facility, Condor said in the statement. Revenues to the State Oil Fund of
Moldovagaz seeks to agreement on feed-gas and LNG end-user Azerbaijan (SOFAZ) from the sale of
Discussions were ongoing to reach
profitable oil and gas from the Azeri-
charge 33% higher end- delivered volumes, fiscal terms and plant Chirag-Guneshli (ACG) block and the Shah
locations, the firm noted.
Deniz field in January-April amounted to
user natural gas prices opportunities to implement proven North $3.3bn, which is 2.2 times higher than the
“The Company continues to mature
same period in 2021, the fund said in a
The head of Moldovan gas company American modular LNG technologies and report. In January-April, SOFAZ's revenues
MoldovaGaz, Vadim Ceban, has argued that processes in Central Asia to displace diesel from the sale of Azerbaijan's profitable oil
the tariff for the final consumer of natural fuel usage in the industrial, transportation from the ACG block amounted to $2.8bn (a
gas should increase by 33% to MDL21 (€1) and power generation sectors,” it added. twofold increase).
per cubic metre, and the company will need In addition, the total income of
subsidies from the government. SOFAZ from the sale of profitable gas and
Moldova’s inflation hit 27% in April and Putin’s gas-for-rubles condensate produced from the Shah Deniz
more electricity price hikes are expected. field in January-April amounted to $405.475
Ceban came up with the idea of raising scheme said to have 20 mn (an increase of 9.6 times). At the same
the price per cubic metre during the warm time, income from the sale of condensate
season and lowering it during the cold buyers signed up amounted to $96.995 mn (an increase of 2.3
season. Under the contract with Gazprom, times), and from the sale of gas $308.48 mn.
the Russian company calculates the price A total of twenty European companies The contract for the development of the

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