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Serbia’s NIS shareholders project (OGP), as the first call-off under the contract, which specifies the pricing
formula and compensation for past
portfolio agreement. The value of the FEED
approve lower dividend for contract is around NOK 120 million. overpayments.
Polish President Andrzej Duda hailed the
The objective of the OGP project is to
2019 maximize Oseberg asset value through news, saying it was “a result of an effective
policy” pursued by authorities “when it
timely low-pressure production and
The shareholders of Serbian blue-chip oil increased gas export, and to reduce comes to the diversification of gas supplies.”
and gas group NIS [BEL:NIIS] approved the Oseberg carbon footprint by partly The $1.5bn repayment is for gas supplied
the company’s proposal to distribute a electrifying the Oseberg field centre and to Poland after November 1, 2014, when the
total of RSD4.425bn ($42.5mn of last Oseberg South with power from shore. pricing dispute erupted between the parties.
year’s profit as dividends, NIS said. Increased gas capacity through the OGP Poland and Russia’s long-term gas supply
The remainder of the profit, in the total project will increase the value of future deal is also due to run out at the end of
amount of RSD13.275bn, will be retained, tie-ins to Oseberg. Equinor and partners are 2022, and Warsaw has said it does not want
which will lift NIS’ overall undistributed working towards a final investment decision to buy more Russian gas after this point.
earnings to RSD174.3bn, the company in late 2021. Poland is developing additional import
said in a filing with the Belgrade Stock “Oseberg is a legacy field that has played infrastructure to achieve this, including a
Exchange on July 1. a key role in developing the Norwegian pipeline from Norway and an expansion in
In this way, NIS will distribute a gross continental shelf and will continue to be its LNG regasification capacity.
dividend of RSD27.14 per share from its an important hub in the North Sea towards
2019 profit, lower than the previous year’s 2040,” says Geir Sortveit, senior vice
payout of RSD39.97. president for Operations West in Equinor.
The shareholders of NIS approved the “We look forward to collaborating Kinsale field halts production
proposal during their meeting on June 30, and working safely together with Aibel to
the company said. develop Oseberg for further value creation Kinsale Energy has ceased its gas
NIS recorded a net profit of RSD17.7bn and lower CO2 emissions for the future,” production at the Kinsale area gas fields in
in 2019, down from RSD25.1bn in the Sørtveit continues. the Celtic Sea after 42 years of production.
previous year. Upon a final investment decision PSE, a Petronas subsidiary since 2009,
Shares in NIS closed 1.75% higher at by Equinor and its partners and a final announced in April 2018 that the gas
RSD580 on the Belgrade Stock Exchange regulatory approval in the OGP project, reserves from the field were depleting.
on July 1. Equinor has the possibility to exercise According to the company, all necessary
a call-off for engineering, procurement, measures are being undertaken to safely
construction and installation (EPCI).. decommission the facilities and with due
Equinor awards Oseberg EQUINOR (NORWAY) regard to the environment.
A decommissioning plan was submitted
portfolio deal to Aibel to the Department of Communications,
Climate Action, and Environment
On behalf of the Oseberg partners, Equinor Gazprom refunds $1.5bn to (DCCAE) in June 2018 and was approved in
has awarded Aibel a portfolio agreement for Poland’s PGNiG after settling April 2019.
the Oseberg fields for the period 2020-2026. As part of the planning process, an
The aim of the portfolio agreement is to price dispute environmental impact assessment report
ensure a holistic approach to planning and (EIAR) and an appropriate assessment
execution of projects at the Oseberg fields. Russian state gas giant Gazprom has screening report were prepared following
“There will be an increased level of refunded $1.5bn to Poland’s state-run gas EU directives.
project activity at the Oseberg fields in the company PGNiG for overpayments of gas The Kinsale area gas fields were
coming years. With one main supplier, we supplied between 2014 and 2020, following developed since 1978 and remained
will be able to synchronize the different a ruling by an international arbitration Ireland’s only indigenous source of natural
projects schedules, utilize synergies between court in the spring, officials have said. gas until 2015.
parallel projects and optimize personnel The money has been transferred to the PSE said that by the time gas production
on board,” says Peggy Krantz-Underland, bank account of the company, CEO Jerzy ceased, almost two trillion cubic feet of gas
Equinor’s chief procurement officer. Kwiecinski announced on Wednesday. had been produced at the Kinsale area gas
“The portfolio agreement will allow The Arbitration Institute of the fields which was double the original reserve
us to work with Aibel on Oseberg in Stockholm Chamber of Commerce ruled estimate.
an integrated way, focusing on safety, in late March that Gazprom had been Offshore decommissioning activities are
continuous improvement and cost overcharging PGNiG for gas, following a currently underway and are expected to
efficiency. It will also create predictability five-year legal dispute between the pair. continue over the next two to three years.
and continuation for supplier’s personnel Gazprom was ordered to adjust the pricing All wells will be permanently plugged
and sites,” explains Krantz-Underland. formula in its long-term supply agreement and the associated facilities – platforms,
Furthermore, Equinor has awarded with PGNiG, known as the Yamal contract, pipelines, cables, subsea structures, and
Aibel a front-end engineering and design to reflect market prices in Europe. the Inch onshore terminal – will be
contract (FEED) for the Oseberg Gas The parties settled the dispute last decommissioned.
Capacity Upgrade and Power from Shore month after signing an annex to the Yamal

Week 27 09•July•2020 www. NEWSBASE .com P19