Page 13 - AsianOil Week 48 2020
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AsianOil                                           NRG                                              AsianOil








                         consisting of refining, trading and wholesale and  Black Sea shelf to help it expand production and
                         gas trading; customer, which includes mobility,  reduce Ukraine’s need for imported gas, but
                         retail and energy solutions; and upstream.  authorities previously wanted to find offshore
                           The plan is to expand Repsol’s renewable  developers through an auction.
                         energy generation capacity by 500 MW each   Ukraine’s  subsoil  service  held a  contest
                         year between 2020 and 2025, up to 7.5 GW, and  for rights to 9,500 square km of the Black Sea,
                         then double it to 15 GW by 2030.     known as the Dolphin contract area, last year.
                           Achieving these targets will require €1.4bn in  A London-based company called Trident   Naftogaz has
                         annual investments by 2025, or eight times more  Resources with no past experience of oil and gas
                         than Repsol spent on renewables last year. But  exploration was selected as the winner. But the   said it will invest
                         the company also expects to generate eight times  government cancelled the award the following   $40mn in its first
                         more in EBITDA from the business in five years’  month, saying it wanted an investor with experi-
                         time, or €331mn.                     ence and technical capability.        year of work on
                           Repsol will still invest more in upstream   The auction had been due to be restaged, with
                         activities than in renewables during the period,  investors given more time to submit their bids,   the Ukrainian
                         projecting its total exploration and production  but this plan was put on hold in light of the coro-
                         spend at €8bn. But this only represents €1.6bn  navirus (COVID-19) pandemic.  Black Sea shelf.
                         in annual investment, compared with €2.4bn in   Naftogaz has said it will invest $40mn in its
                         2019 and €2.6bn per year in its earlier 2018-2020  first year of work on the Ukrainian Black Sea
                         strategic plan.                      shelf, which it estimates to hold 1-2 trillion cubic
                           Instead of targeting growth, Repsol’s focus  metres of gas. It will, however, first need to drill
                         will also move to maintaining oil and gas output.  to find out how much gas is really out there and
                         It projects average production at 650,000 barrels  how much can be recovered commercially.
                         of oil equivalent per day (boepd) over the period,   Over in Russia, both Gazprom and Tatneft
                         which is the same as its forecast for 2020.  reported their third-quarter results on Novem-
                           Italian gas grid operator Snam also  ber 30. While Gazprom swung to a net loss of
                         announced a new strategy this week, similarly  RUB251bn ($3.3bn), Tatneft stayed in the black,
                         setting clean energy as a cornerstone of its invest-  delivering a net income of $0.49bn.
                         ment plans. The main focus will be hydrogen   Gazprom  blamed  its  reversal  on  a
                         production and transportation.       RUB464.3bn foreign exchange loss relating
                                                              to the revaluation of its foreign currency-de-
                         If you’d like to read more about the key events shaping   nominated debts. Tatneft’s board, meanwhile,
                         Europe’s oil and gas sector then please click here for   disappointed investors by failing to announce
                         NewsBase’s EurOil Monitor.           a decision on a dividend for Q3 2020, implying
                                                              that one is not likely to be paid.
                         FSU: Ukraine’s Black Sea ops
                         Ukraine’s government has granted state-owned   If you’d like to read more about the key events shaping
                         gas supplier Naftogaz a 30-year licence to explore   the former Soviet Union’s oil and gas sector then please
                         and develop a section of the Black Sea, without   click here for NewsBase’s FSU Monitor.
                         a tender.
                           The country’s Cabinet of Ministers approved  GLNG: Looking at LNG resource-sharing
                         a resolution clearing Naftogaz for the project on  The oversupply in the LNG market, which has
                         November 25, with Natural Resources Minister  been exacerbated by the coronavirus (COVID-
                         Roman Abramovsky proposing that the com-  19) pandemic, is prompting developers to con-
                         pany could partner with international investors.  sider options including resource-sharing. This
                           Naftogaz has been lobbying for access to the  is now playing out in Mozambique, where Total

























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