Page 13 - FSUOGM Week 34 2022

FSUOGM NEWS IN BRIEF FSUOGM

Trillion to move jack-up rig sanctions, Serbia should find alternatives to maintenance works and inspections.
He pointed out that due to the Western

to Turkish Black Sea field Russian oil. However he said that Iraqi oil is
$31 more expensive per barrel.
Trillion Energy International, an oil and gas Russian gas ouput down by
company, said on August 22 that the Uranus 7% y/y in 1H22
jack-up drilling rig was being prepared to Gazprom gives Moldovagaz
move to its SASB natural gas field in the Russian gas production shrank by 7% from
Turkish section of the Black Sea where payment extension the 2021 level in the first half of the year,
it will be used for a multi-well drilling according to RosStat, reports the Bank of
programme, Offshore Engineer reported. Russian gas giant Gazprom has given Finland Institute for Emerging Economies
The programme initially includes seven Moldovan gas distribution company (BOFIT).
natural gas production wells. Moldovagaz until September 1 to make The gas company Gazprom announced
There remains considerable scepticism its advance payment for gas consumed in that its own output decreased by 12% in
among oil and gas analysts as to how August, Reuters reported citing a statement January-July compared to the previous year.
voluminous Turkey’s Black Sea hydrocarbon from Gazprom. Gazprom's share in Russian gas production
resources will prove to be, despite some big Gazprom and Moldovagaz extended the is about two-thirds, but the company has a
claims from the Erdogan administration, gas supply contract for a period of five years monopoly over exports of pipeline gas.
but Trillion Energy was cited as saying in October 2021. Since then, Moldovagaz The significant decrease in Gazprom's
that the wells would come online "during a has struggled to pay its bills to Gazprom, gas production is due to the reduction in
time when acute natural gas shortages are several times coming close to having its export volumes. According to Gazprom,
menacing Europe and Turkey. Natural gas supplies cut off. exports to Europe (including Turkey)
prices continue to spike, breaking historical Moldovagaz had asked Russia’s Gazprom decreased by 35% in January-July compared
records; the prospect of a cold winter looms for a delayed advance payment for August to the previous year. Although exports to
with the worst shortages expected yet to after it paid for gas delivery for July on China have grown rapidly, the quantities are
come." August 22, the head of the Moldova's still very small.
Arthur Halleran, the company’s CEO, company Vadim Ceban told Russia's RIA Gas exports to EU countries have
was reported as adding: "We are pleased Novosti. decidedly collapsed during the summer. The
to announce a clear path to drilling and Earlier, Moldovagaz asked the Russian Yamal-Europe pipeline that runs through
gas production—we are counting the days gas giant to postpone advance payments for Poland is completely out of use, gas is
before we embark on this historic milestone August and September until the end of the exported through Ukraine through only one
achievement to bring substantial new gas fourth quarter. compression station (Sudza) and the Nord
production into the region at a critical "July was settled, we asked for a Stream running at the bottom of the Baltic
time.". postponement of advanced payment for Sea is only transporting at a fraction of its
August," Ceban was cited as saying. capacity.
Gazprom responded on August 22 that In July, EU countries imported pipeline
Vucic says Serbia will be it had Moldovagaz’ request to delay the gas from Russia about 75% less than a
payment.
year earlier. If exports remain at this level,
unable to buy Russian oil company had not fulfilled its contractual Gazprom's production will also collapse.
However, it added that the Moldovan
According to BP's statistics, Russia's
from Nov 1 due to sanctions obligations for making advance payments gas exports in 2021 totalled 241bn cubic
for gas in August.
metres, of which the majority, or 20 bcm,
Serbia will no longer receive oil from Russia was traditional pipeline gas. Of that, 167
as of November 1 due to the sanctions against bcm, or 83%, was exported to Turkey and
Moscow, Russia’s RIA Novosti cited Serbian CPC suspends oil loadings Europe, 13% to the territory of the former
President Aleksandar Vucic as saying on Soviet Union and 4% to China. Almost 40
August 21. from two mooring points bcm of liquefied natural gas (LNG) was
The oil is delivered to Serbia by tankers exported from Sakhalin and Yamal. 44% of
through the Adriatic Sea, and then via the The Caspian Pipeline Consortium (CPC) LNG exports went to Europe, 22% to Japan
oil pipeline through Croatia. EU members has suspended oil loadings from two of the and 6% to China.
agreed at the end of May on the sixth sanction three single mooring points (SPMs) at its Russia's gas exports are practically
package for Russia’s military invasion of Black Sea terminal in Russia's Novorossijsk, completely dependent on the European
Ukraine that includes an agreement to where most Kazakh oil is loaded for world market. The only export pipeline to the east,
immediately cut seaborne oil imports from markets, due to inspections, two sources named the Power of Siberia, is not yet in
Russia, which account for two thirds of familiar with the loadings told Reuters. full use.
Russian oil supplies to the EU. While Serbia "CPC suspended loadings from SPM- “When deliveries of Siberian power reach
is not an EU member, it is also affected, as 2 since August 17 due to inspection and the planned capacity of 38 bcm, China's
Naftna Industrija Srbije (NIS) will no longer SPM-1 has been offline since earlier this share in Russian gas exports may rise to
be able to import Russian crude oil through month due to the same reason," one of the close to 20% of exports. China's share can
the Adriatic Oil Pipeline (Janaf). sources told the news agency. Loadings were only increase in the next few years if exports
“What will we do with electricity, oil? From reportedly continuing from CPC’s SPM-3. to Europe shrink accordingly,” says BOFIT.
November 1, there will be no Russian oil for Nevertheless, CPC loadings have not “According to preliminary plans, the new
us, we will be under sanctions," Vucic was been affected as the pipeline saw lower than export pipeline, Power of Siberia 2, will be
cited as saying in an address to citizens. expected supply via CPC amid maintenance completed in 2030 at the earliest. Even after
In June, Vucic, who has refused to join works on two major Kazakh oil fields, the new pipeline is completed, exports to
Western sanctions against Russia, said that Tengiz and Kashagan, the sources noted. China could be at most half of what Russia
Serbia can expect to lose $600mn a year as a CPC has repeatedly suspended loadings exported to Europe before the war.”
result of the EU sanctions on Russian oil. from its SPMs throughout 2022 amid

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