Page 15 - FSUOGM Week 40 2021

FSUOGM NEWS IN BRIEF FSUOGM

Court of Justice of Germany in compliance on year. In January-August, Azerbaijan
with the set terms,” the response read. exported primary polypropylene worth
Previously, Germany's Federal Network $75.9mn, equating to a $24.1mn or 46.5% Dragon Oil with assets in
Agency (BNA) turned down the company’s gain year on year.
demand to free the pipeline from The SOCAR Polymer petrochemical Turkmenistan on track to
regulations of the E.U. Gas Directive, and it project includes a polypropylene unikt with
appealed to the Higher Regional Court of an annual capacity of 184,000 tonnes. The double oil output
Dusseldorf against the decision. polypropylene facility was commissioned on
The directive demands division of July 18, 2018. Exports of its polypropylene UAE producer Dragon Oil remains on
functions of a producer and transporter of started three months later. track to nearly double its oil output from
natural gas, and that third parties, or the international assets, which include assets
companies other than Russian gas giant in Turkmenistan, to around 300,000
Gazprom in this case, get access to the pipe. Fitch assigns barrels per day (b/d) by 2026, despite
The Nord Stream-2 project envisages the coronavirus-related setback in 2020,
construction of two lines of a natural gas Uzbekneftergaz first-time Upstream reported on September 21, citing
pipeline with an annual capacity of up to Dragon Oil’s chief executive Ali Rashid Al
55 billion cubic meters, running from the 'BB-' IDR with stable Jarwan.
Russian shore to Germany under the Baltic Al Jarwan said the firm was currently
Sea. Gazprom builds the pipeline together outlook producing 160,000 b/d of oil, with
with Germany’s Uniper and Wintershall around 60% of that production coming
Dea, Royal Dutch Shell, Austria’s OMV, and Fitch Ratings has assigned Uzbekneftegaz from the two offshore developments
France’s Engie. (UNG) a first-time 'BB-' Long-Term Issuer within the Cheleken contract area in the
Default Rating (IDR) with a stable outlook. Turkmenistan’s sector of the Caspian Sea.
UNG is a fully state-owned integrated “When the [Covid-19] pandemic
natural gas and liquid hydrocarbons occurred, Dragon had to cut spending and
CENTRAL ASIA & SOUTH producer with strong links to the operating expenditures by 35%, however,
government. “We view its Standalone [we] managed to pass the period without
CAUCASUS Credit Profile (SCP) at 'b+', which reflects major layoffs," Al Jarwan said.
its medium scale and low-cost position “We have been a pioneer in adopting
SOCAR Polymer increases as well as fairly high, albeit declining digital solutions and new energy
innovation, and therefore we have managed
leverage, regulated domestic gas prices
export revenues 74% and limitations of the general operating to maintain our financial resilience while
environment in Uzbekistan,” the ratings
forging ahead with our overseas projects,"
SOCAR Polymer, a 57%-owned subsidiary agency said. he added.
of the State Oil Company of Azerbaijan Fitch assessed the support record as Dragon Oil recently renewed its
(SOCAR), exported products worth “Very Strong” because 80% of UNG’s development contract in Turkmenistan for
$142.7mn from January-August of this consolidated debt was guaranteed by the an additional 10 years until 2035, Al Jarwan
year, marking a $60.6mn, or 73.8%, year state at the end of 2020. Other forms of noted.
on year increase, according to the Center support were the conversion of UNG's
for Economic Reforms Analysis and $1.7bn of debt to the sovereign wealth
Communication. fund of Uzbekistan and dividends payable
According to the same report, in August, into equity in 2020, lowered taxes, and
Azerbaijan exported primary polypropylene liberalised oil product prices charged by
worth $9mn, up 76.5% or $3.9mn year UNG.

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