Page 16 - FSUOGM Week 20 2022

FSUOGM NEWS IN BRIEF FSUOGM

Azeri, Chirag and deepwater Gunashli fields Foreign Minister Raimundas Karoblis reaching up to about a mile long in some
was signed on September 20, 1994, and said on May 11, LRT.lt, the website of the areas.
entered into force on December 12 of the Lithuanian national broadcaster LRT, The shortage has come after Russia
same year. This agreement expires in 2024. reported on May 12. began striking Ukraine’s fuel depots and
However, on September 14, 2017, a new “The breakthrough is really small, oil refineries last month. The destruction
contract for the development of the ACG inessential,” he told reporters. “There are of the Kremenchuk oil refinery in Poltava,
block, calculated until 2050, was signed in various thoughts about value issues, about Ukraine’s only oil refinery, was particularly
Baku. some countries willing to live as if nothing significant. The refinery supplied Ukraine
Under the new contract, the share of has happened, as if the war is not ours.” with 50% of its diesel and petrol fuel,
British BP (project operator) is 30.37%, The EU has been discussing an embargo Svyrydenko stated. A large amount of oil
SOCAR (25%), Hungarian MOL (9.57%), on Russian fossil fuel imports, including was transported from Romania via the
American ExxonMobil (6.79%), Indian oil, but the move is being resisted by some Bilhorod-Dnistrovskiy bridge in Odesa
ONGC (2.31%), Japanese Inpex Corp. member states that are heavily dependent Region, which has been destroyed by
(9.31%) and ITOCHU Oil (3.65%), on Russian energy, notably Hungary. Russia.
Norwegian Equinor (7.27%), Turkish TPAO A few weeks ago, the European While Ukraine has 92,500 tonnes of
(5.73%). Commission drafted the sixth package gasoline and 81,000 tonnes of diesel fuel
of sanctions on Russia to further punish in reserve, the country needs help in
Moscow for its invasion of Ukraine. securing supplies from the United States,
Azerbaijan reduced oil vocally Hungary, are opposed to plans to the Baltic States and Poland. Russia is also
However, several member states, most
increasingly targeting Ukraine’s railway
exports by 5% y/y in Q1 phase out Russian oil imports by the end of infrastructure, which is key to moving oil
this year.
across the country.
The export of oil (with condensate) from Hungary, Slovakia, and the Czech
Azerbaijan in January-April amounted Republic have been offered exemptions to
to 9mn tonnes, which is 5.3% lower y/y continue importing Russian oil until the Kazakhstan’s state-run
according to the Azerbaijani Energy end of 2024, but Budapest wants a five-year
Ministry. “In the total export of oil with period to wean itself off Russian oil and will oil pipeline operator KTO
condensate in the reporting period, about need a new pipeline with Croatia, which has
8.5mn tonnes fell to the share of oil from access to the sea, as well as guarantees for reports Q1 oil shipments
the ACG block, and condensate from the the financing of the project.
Shah Deniz field 0.4mn tonnes to the share Among other things, the countries also decline
of SOCAR,” the ministry reported. want help securing new sources of oil and
According to the latest data from the converting their refineries. Kazakhstan’s state-run oil pipeline operator
Ministry of Energy, oil production with European Commission President Ursula KazTransOil (KTO) has said that its
condensate in Azerbaijan in January-April von der Leyen said on May 10 that some volume of oil transportation via its main oil
amounted to 11.1mn tonnes (a decrease of progress had been made in the latest talks pipelines amounted to 9.758mn tonnes of
3.6%). At the same time, 7mn tonnes of oil with Hungarian Prime Minister Viktor oil in the first quarter. It put out a statement
were produced from the ACG block, 2.6mn Orbán. on the matter on May 6.
tonnes were produced by SOCAR, and 1.5 According to Karoblis, the list of The amount was 480,000 tonnes less than
million tons of condensate came from the individuals subject to sanctions should what was seen in the same period of 2021.
Shah Deniz field. In January-April, 1.8mn be expanded in the future to include The decline may have been related to issues
tonnes of oil were processed in Azerbaijan those responsible for the deportation of with oil shipments this year stemming from
(a decrease of 10.5%). Ukrainians. Russia’s invasion of Ukraine and resulting
The ministry said that since the start of Kyiv says Ukrainians are being deported sanctions imposed on Moscow.
their development and as of May 13 a total en masse from occupied areas to Russia, “The consolidated oil turnover of
of 589mn tonnes of oil with condensate sent to special camps, stripped of their KazTransOil JSC increased by 92 million
have been produced from the ACG block documents and forbidden to leave so as to ton-kilometers compared to the same
and from the Shah Deniz field, including prevent them from giving evidence about indicator last year and amounted to 10
553mn tonnes of oil from the ACG, and war crimes committed by the Russian billion 760 million ton-kilometers,” KTO
from the Shah Deniz field 36mn tonnes of forces. said.
condensate. The total export of oil from the “4 million 348 tons of oil were
ACG block and condensate from the Shah transported to the refineries of the Republic
Deniz field as of May 1 amounted to 589mn Ukraine days away from of Kazakhstan through the system of trunk
tonnes. oil pipelines of KazTransOil JSC, which
exhausting civilian fuel is 279 thousand tons of oil more than the
volumes of January-March 2021,” KTO
Lithuanian deputy – Economy Minister Yulia added.

foreign minister says no Svyrydenko EBRD says rising gas price

breakthrough in EU talks on Ukraine has claimed that it has nearly remains a major risk for
exhausted its civilian fuel supply, according
Russian oil sanctions to the Economy Minister Yulia Svyrydenko
on 10 May, 2022, the Wall Street Journal
EU member states have not reached first reported. Ukraine will ration purchases Moldova
any major breakthrough in their talks on to up to 10 litres, Svyrydenko said, as Rising gas prices are a major risk
Russian oil sanctions, Lithuanian Deputy she also described how fuel queues were for Moldova, the European Bank for

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