Page 14 - FSUOGM Week 26 2022

FSUOGM NEWS IN BRIEF FSUOGM

Kazakh oil shipments from Russia’s TATNEFT and working actively with its partners on the
Russian oil price-cap plan and said to “stay
Black Sea terminal ‘reduced Kazakhstan’s KazMunayGas tuned” when she was asked if the plan
would be ready for the Group of Seven
slightly’ amid search for express intent to go ahead (G7) meeting in Germany later this month.
European officials have warned,
mines says Russia with Karaton-Sarkamys however, that the plan could be too
complicated and would require the EU to
Despite an earlier announced seab survey exploration project rework its latest sanctions. The legal text
for mines, shipments of oil from Kazakhstan for the most recent sanctions package took
“have been reduced slightly, however, Russia’s TATNEFT and Kazakh state-run weeks to approve, with numerous obstacles
remain within the agreed schedule” at the company KazMunayGas (KMG) signed needed to be overcome in order to achieve
Caspian Pipeline Consortium's (CPC's) an agreement expressing their intent unanimity among the EU’s 27 members.
Black Sea terminal, according to Russia's to implement the Karaton-Sarkamys The US, Canada, the UK and a handful
energy ministry, as cited by Upstream on exploration project in Kazakhstan’s Atyrau of other countries have banned Russian oil
June 24. Region. from being imported, but the EU remains
Russia on June 23 said that it had The document was inked at the St highly dependent on Russian crude for
extended its search for mines near the Petersburg International Economic Forum now, even as it works to address this. The
terminal until July 5 from the previous by general director of TATNEFT Nail bloc has, however, agreed to ban seaborne
completion date of June 25. The terminal Maganov and KMG management board imports of Russian crude in six months. It
is a vital part of Kazakhstan's oil export chairman Magzum Mirzagaliyev. The has also agreed to collaborate with some
infrastructure. The operator at the terminal agreement reconfirms the intentions of G7 members, such as the UK, to ban the
must continue to use just one of three cooperation between KazMunayGas and insurance services needed to ship Russian
loading buoys for oil exports given the TATNEFT in the implementation of the oil anywhere in the world.
mines search, Russian officials said. Karaton-Sarkamys project.
The difficulties come as some voices Mirzagaliyev commented: "We are
in Russia continue to complain that actively developing cooperation in a India certifies Russian
Kazakhstan has not stepped forward with variety of areas - from the supply of goods
support for the Russian invasion of Ukraine. and equipment to the organisation of oil tankers busting EU
CPC had earlier difficulties with exports activities to increase the oil recovery of
via the terminal in March with the pipeline mature fields." sanctions on oil transport
briefly suspending oil loadings after alleged
damage claimed by Russia to loading India is providing safety and insurance
facilities due to stormy weather in the Black US, Canada and allies certification for dozens of ships managed by
Sea. a subsidiary of top Russian shipping group
In the latest announced technical discuss price cap on Sovcomflot that will blow a hole in EU
operation, Russian authorities are sanctions on Russian oil being transported
supposedly searching for and defusing Russian oil by sea, official data showed, reported
WWII-era mines along with mines placed Reuters on June 23.
in the Black Sea due to the ongoing war in The US has held talks with Canada and The certification allows Russian oil
Ukraine. other allies to consider imposing a price exports to India and elsewhere after
cap on Russian oil in the latest attempt to Western certifiers withdrew their services
limit Moscow’s energy revenue amid the due to global sanctions against Moscow.
Kazakhstan says it remains ongoing war in Ukraine. of Russian oil double since the start of the
India and China have seen their imports
Speaking at a press conference in
committed to long-term oil Toronto on June 20, US Secretary of the war in Ukraine.
Certification by the international
Treasury Janet Yellen stated that a price
output goal of 100mn tonnes exception could serve as an effective recognised Indian Register of Shipping
cap. This could be achieved through a
(IRClass) provides crucial paperwork that
per year mechanism to restrict or ban insurance of allows Russian oil to be moved by sea – an
financing for Russian oil shipments above
export route the Western sanctions have
Kazakhstan remains committed to a certain amount. been trying to close down by threatening
its long-term plan to increase oil and "We are talking about price caps or a secondary sanctions on insurance and
condensate production to 100mn tonnes price exception that would enhance and shipping companies carrying Russian oil.
per year, a 10% increase from current levels, strengthen recent and proposed energy The certificates are needed to keep the
Energy Minister Bolat Akchulakov told restrictions by Europe, the United States, state-owned Sovcomflot's tanker fleet in
Energy Intelligence at the St. Petersburg the UK and others, that would push down business. While Europe is attempting to
International Economic Forum (SPIEF). the price of Russian oil and depress Putin's wind down its imports of Russian oil –
Akchulakov said Kazakhstan would revenues, while allowing more oil supply Germany has already reduced its share of
increase output by 12mn tonnes per year to reach the global market," Yellen told Russian oil from 35% to 12%, Berlin says –
(260,000 barrels per day) by 2025, once the reporters. Russia has been boosting the amount of oil
$45bn expansion of the Chevron-operated "We think a price exception is also an it sends by ship.
Tengiz project is completed. important way to prevent spillover effects Data compiled from the IRClass website
He noted that production this year was to low-income and developing countries shows that it has certified more than
planned to reach 87mn tonnes per annum, that are struggling with high costs food 80 ships managed by SCF Management
marking a slight increase from last year. and energy," she added. Services (Dubai), a Dubai-based entity
Yellen said the US would continue listed as a subsidiary on Sovcomflot's

P14 www. NEWSBASE .com Week 25 22•June•2022