Page 13 - AsianOil Week 48 2020
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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
Week 48 03•December•2020 www. NEWSBASE .com P13