Page 8 - FSUOGM Week 32 2021

FSUOGM POLICY FSUOGM
Russia holds off on gasoline ban
RUSSIA
Wholesale gas prices have seen a near unprecedented rally in recent months.
RUSSIA is yet to declare a ban on gasoline exports, despite recent calls from the energy ministry to do so in order to stem record-high wholesale prices for the fuel.
The energy ministry confirmed on July 30 it had filed a proposal for the government to start a procedure for the ban. The government had already drafted a decree on this temporary meas- ure in April after a previous price spike, to have it ready in the event of an emergency.
Wholesale gas prices have seen a near unprecedented rally in recent months as a result of rising international oil prices, increased sum- mer demand for motor fuels and maintenance work at refineries. Pump prices have seen less movement, however, owing to a damper mech- anism introduced in Russia’s oil taxation regime in 2018, which gives suppliers more incentive to keep costs for motorists low. Yet pump prices have still seen gains, and this is a sensitive issue for the government ahead of the September par- liamentary elections.
Russian gasoline production fell to 3.35mn tonnes in July, which in daily terms is 3% lower than in June and 7% lower than in July 2020. The reason was major preventative maintenance at a number of refineries. At the same time, gaso- line demand in Russia increased in July. Besides the usual seasonal factors, a growth in domestic tourism was also behind this rise.
The prices of Russia’s main blends of gasoline, Ai-92 and Ai95, reached records of RUB57,487 ($785.60) and RUB60,092 per tonne respectively on July 22 at the St Petersburg International Mer- cantile Exchange (SPIMEX). Prices soared on the exchange during the month despite gasoline producers distributing more fuel on the platform than recommended by the energy ministry and the Federal Antimonopoly Service (FAS). Cur- rent regulations require refiners to sell at least 11% of their gasoline on the exchange, although during the first weeks of July the share was 28%, according to Deputy Energy Minister Pavel Sorokin. ™
Russia to auction five Yamal blocks in September
RUSSIA
RUSSIAN subsoil licensing agency Rosnedra plans to auction off rights for five more oil and gas blocks on the Yamal Peninsula in the Arctic on September 21, the PRIME news agency has reported. The blocks in question are referred to as Kharayegansky, Khoshgortyegansky, Logastyegansky, Vostochno-Kharaveysky and Vostochno-Maliginsky.
The block that is on offer for the highest initial price is Vostochno-Kharasaveysky, at RUB957.3mn ($13.1mn). That site boasts 24.1mn tonnes (177mn barrels) of oil in D1+D2 resources, plus 409bn cubic metres (bcm) of nat- ural gas. It lies adjacent to licences held by Gaz- prom and Novatek, the main developers on the Yamal Peninsula.
In second place is Vostochno-Maliginsky, which has 31mn tonnes of oil, 3.4mn tonnes of condensate and 332 bcm of gas in D1+D2 resources. It is going for a minimum price of
RUB487.2mn. In third place, Logastyegansky will go for RUB245.3mn. It contains 127mn tonnes of oil, 2.4mn tonnes of condensate and 12.1 bcm of gas in D1+D2 reserves.
Kharayegansky holds 32.6mn tonnes of oil, 0.62mn tonnes (5.6mn barrels) of condensate and 19.1 bcm of natural gas in D1+D2 reserves. It will be offered to bidders at a starting price of RUB68.8mn. Khoshgortyegansky has 21.7mn tonnes of oil, 0.7mn tonnes of condensate and 19.5 bcm of gas in D1+D2 reserves, and will be offered at an initial price of RUB51mn.
Gazprom and Novatek are the two main play- ers operating on the mostly gas-prone Yamal Peninsula. The largest field on the peninsula is the Gazprom-led Bovanenkovskoye field that delivers gas to Europe via pipeline. Also situated there is the Utrenneye field, used by Novatek to supply feedstock for its 17mn tonne-per-year Yamal LNG plant. ™
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w w w . N E W S B A S E . c o m Week 32 11•August•2021