Page 17 - EurOil Week 35 2021

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over the coming months. with Equinor, signed that year and later market report.
“In the meantime, the signing of the amended, Lithuania committed to buy the The highest volume of oil and oil products
exclusivity agreement on the Ferrum wind minimum amount of LNG – four large vessels came from Russia at 1.13mn tonnes. Iraq and
farm demonstrates our commitment to the a year – to maintain the operation of the Kazakhstan followed with 985,868 tonnes and
provision of low carbon intensity energy Klaipeda-based LNG terminal.. 344,234 tonnes, respectively.
supplies. It complements the gas facility we Growth in oil imports and consumption in
are seeking to develop at IJmuiden, allowing Turkey was in June driven by the extent of the
us to keep emissions as low as possible. This Eni and Novatek to recovery from the COVID-19 pandemic.
is an exciting prospect for Kistos and we look Turkey, reliant on imports to meet almost
forward to announcing further progress in the announce exploratory all of its oil and gas demand, also in June saw
near future. “ its oil refinery product exports rise by 161.7%
drilling results from to 1.08mn tonnes and its oil refinery product
output expand by 39.8% to 3.17mn tonnes.
Lithuania hails updated LNG Montenegrin offshore by month were up 10% y/y to 2.72mn tonnes.
Total domestic oil product sales in the sixth
contract with Norway’s end-September

Equinor The results of the exploratory oil and gas Germany’s Jan-June oil
offshore drilling in Montenegro carried
Lithuania’s energy ministry praised on August out by a tie-up of Italy’s Eni and Russia’s imports dropped by 10%
30 the agreement with Norwegian company Novatek should be announced by the end of
Equinor on amendments to the existing September, according to Marko Perunovic, year on year
liquefied natural gas (LNG) supply contract, secretary of the Capital Investment Ministry,
touting it as an optimal solution that will lead news outlet CDM reported on August 26. German crude oil imports in January through
to saving several millions of euros each year. The consortium started the exploratory June fell 10% year on year as the COVID-19
Ignitis, part of Lithuania’s state-owned drilling in March at a depth of 6,530 metres in pandemic and related lockdowns hit industry,
energy group Ignitis Grupe (Ignitis Group), the sea between Bar and Ulcinj, and it will last official data showed, according to Reuters.
announced on August 27 that it had reached four and a half to six months. Oil volumes in the six months fell to 37.7
an agreement with Norwegian company The drilling should determine the potential million tonnes from 41.9 million in the same
Equinor on the amendment of their LNG of the deposit, while the production could months of 2020, statistics from the BAFA
purchase contract regarding a more favorable start three to five years after the completion of foreign trade office showed.
LNG cargo supply structure. the first drilling. Russia accounted for 33.6% of Germany’s
Ignitis said the updated LNG cargo supply According to Perunovic, the drilling has oil imports in the period, followed by 19.4%
contract with Equinor would be signed in already reached 4,700 metres. In case of a from the British and Norwegian North
the coming days but refused to provide more positive result, the consortium’s next step Sea, while imports from members of the
details about the terms and conditions of the would be to start developing the drilling site Organization of the Petroleum Exporting
contract. that would last between two and three years. Countries (OPEC) contributed 15.6%.
However, Ignitis said that the amendments The start of oil production could begin in The rest was shared among other sources
concerned the schedule of LNG cargoes’ 2024, Perunovic also said. including, prominently, the United States and
delivery, pricing and extra guarantees. It also Montenegro has so far concluded two Kazakhstan.
confirmed that the number of LNG cargoes concession agreements for offshore drilling in Germany spent 14.6 billion euros ($17.22
and the term of the contract would remain the region of Ulcinj and Bar. billion) on crude imports in the period, 22.7%
unchanged. The other contract was signed in 2017 with more than a year earlier, mainly reflecting
According to the group, the amendments the London-based company Energean, which demand-led oil price gains.
would allow saving €14-17mn for the currently is looking for a partner to set up a Brent crude has rallied nearly 40% this
remaining period of the effective contract, i.e., consortium for the project. year, also supported by supply cuts made by
from 2022 until the end of 2024. OPEC and allies, and some demand recovery.
Following the amendment of the contract, Earlier on August 30, it hit a four-week
the difference between the price paid for Turkey’s oil imports grow high before easing back on Hurricane Ida’s
purchasing LNG cargoes as per the contract weakening.
and the average price of gas imported to the 43.2% y/y in June In the German Jan-June statistics, average
Republic of Lithuania would “become much oil prices paid for each tonne at the national
more stable”, Ignitis said. Turkey’s oil imports grew by 43.2% y/y to border had been up 36.9% from a year earlier
Before the changes, Lithuania used to pay 3.99mn tonnes in June, according to data at 387.94 euros per tonne, BAFA said.
an above-the-market price for Equinor LNG, released by Turkey’s energy watchdog on
and the difference had to be covered by all gas August 26.
consumers. Crude oil imports were up 73% to 2.85mn
Ignitis has been acting as the designated tonnes, Turkey’s Energy Market Regulatory
LNG supplier since 2014. Under the contract Authority (EMRA) added in its monthly oil

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