Page 14 - FSUOGM Week 02 2020

FSUOGM
FSUOGM
Minsk’s terms.
The Belarusian government has already
drafted a special decree that allows to suspend the transit, according to unnamed sources cited by Minsk-based online outlet TUT.BY on January 10.
Meanwhile, Reuters reported on January 11 that the transit of Russian oil through Belarus has not been interrupted despite an energy row between the countries, Russian Deputy Energy Minister Pavel Sorokin said.
Russia halted crude supply to Belarus on January 1 after a contract expired, and the two countries are in negotiations on a new agreement.
Minsk said later in January that it has secured a temporarily solution on shipment from a Russian company, without paying
a premium. Over the past years, Belarus bought oil on terms similar to that for Russian independent refineries, which involved a small premium, the person said, according to Bloomberg.
On January 4, deputy CEO at Belarusian state petrochemical conglomerate Belneftekhim Vladimir Sizov said that it intends to resume exports of oil products in January.
“The resumption of [exports of oil products] is expected in January. [...] [The resumption of exports] depends on how rhythmically and quickly the contracts are concluded. We expect that all possible restrictions will be lifted by the end of January - at least this is an optimistic scenario”.
bne IntelliNews, January 13 2020
CENTRAL ASIA & SOUTH CAUSASUS
Georgian oil firm to borrow €300mn
The Georgian Oil and Gas Corporation (GOGC), one of the largest state-owned enterprises in Georgia, plans to borrow
€300mn in April by issuing bonds on the international financial market, according to a Business Media report citing a company press release.
“Full redemption of $250mn bonds will be made,” a statement, released by GOGC and the Georgian Ministry of Economy, read.
GOGC issued 5-year eurobonds worth $250mn on the London Stock Exchange in 2016 to refinance a previous same-sized issue in 2012.
The funds raised under the April 2020 eurobond move will be partly used for the construction of the Gardabani 3 thermal power plant.
“The proceeds from the issuance of
new bonds (€300 million, approximately $330mn) will mainly be used to repurchase eurobonds issued in 2016 ($250mn), with the remaining amount (approximately $70-80mn) to be used for partial financing of construction of Gardabani 3. Most of the investment in Garbadani 3 will be financed from own funds, though. The new bond is issued in euros because of the significantly lower interest,” GOGC was quoted as saying.
GOGC completed construction of the second block of the Gardabani plant in late 2019. The 230-megawatt facility has already been put into test mode and has supplied electricity to the state power system.
According to the economy ministry, the company made “significant profits” in 2019. In the first six months of last year, GOGC reported Georgian lari (GEL) 32.2mn (slightly more than $10mn) in net profit.
bne IntelliNews, January 9 2020
Azeri oil output falls 3.6% in 2019
Azerbaijan’s oil production stood at 764,000 barrels per day in 2019, marking a reduction of 3.6% y/y, the country’s energy ministry said on January 13.
In 2018, the country was producing 792,600 bpd.
Officials linked the fall in oil production to OPEC commitments. The 15-member OPEC cartel signed an agreement in December 2018 to reduce output by 800,000 bpd, while non-OPEC countries agreed to contribute with 400,000 bpd. In July, the agreement was prolonged until the end of the first quarter of 2020.
To meet the requirement agreed with OPEC, Azerbaijan must maintain daily production at 769,000 bpd from the start of this year.
Since gaining independence, Azerbaijan has signed 20 PSA contracts, requiring $60bn of investment, with foreign investors to develop its oil industry.
bne IntelliNews, January 14 2020
P14
w w w. N E W S B A S E . c o m
Week 02 15•January•2020