Tag Archives: oil

Stock market: Bank of Georgia, Tethys, Centerra

FEB. 5 2016 (The Conway Bulletin) — Bank of Georgia shares were up 6.9% this week, closing at £18.14 on Thursday. The bank has followed a downward trend since the beginning of the year, but news of the merger between its corporate banking and investment management departments lifted its shares.

BGEO Group, the holding that owns Bank of Georgia, said it is confident that the move will boost returns and reduce risk.

Tethys Petroleum shares jumped by 19.7% to 2.25p off the back of stable oil prices, leading an upbeat crowd of oil and gas companies involved in the region. Only Nostrum continued the slump.

Among miners, Centerra Gold posted a significant jump of 7.2% to 6.73 Canadian dollars after the Mongolian parliament unblocked negotiations over ownership and licences linked to one of their gold mines in the north of the country.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

First petrol from Iran arrives in Tajikistan

FEB. 3 2016,  DUSHANBE (The Conway Bulletin) — Iran shipped its first batch of petrol to Tajikistan, a deal both countries credited to the lifting of Western sanctions.

It’s also, importantly, more evidence of the impact that post-sanctions Iran is having on Central Asia and the South Caucasus. Reports from across the region have shown a sharp increase in trade with Iran since the US and the European Union lifted sanctions on Jan. 16.

These deals have included an agreement with Kazakh airline Air Astana, grPain agreements with Kazakhstan, trade arrangements with Armenia and the arrival of the first train, via Central Asia, direct from China in Iran.

But it is, perhaps, petrol exports to the Central Asia/South Caucasus region where Iran can have the biggest impact.

Officials from the National Iranian Oil Products Distribution Company told local media the shipment of petrol to Tajikistan measured 2.9m litres, a volume they could maintain on a daily basis. If it did send this amount of petrol to Tajikistan every day, Iran’s petrol exports would measure around 750,000 tonnes a year. This roughly equals Tajikistan’s total current consumption. It had previously imported most of its petrol from Russia.

Mohammad-Mehdi Gharaei, director of the distribution company, told media that Tajikistan had asked for the petrol products. “In view of the [post-sanctions] conditions, Tajikistan requested in early February to purchase Iranian gasoline,” he said.

Iran sent petrol to Tajikistan on trucks through Afghanistan.

Iran is a net importer of petrol. This, though, will change later this year when a new super-sized refinery opens on the Persian Gulf. This refinery will turn Iran into a petrol exporter and Central Asia and the South Caucasus will be a prime target market. They just don’t have enough refinery capacity.

Iman Nasseri, of FGE energy consultancy in London, said Iran is looking to capture market share.

“In the post-sanctions era we expect more shipments from Iran. Most of these might have been discussed and negotiated before sanctions were lifted,” Mr Nasseri told The Bulletin.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

 

Editorial: Iranian oil for Tajikistan

FEB. 5 2016 (The Conway Bulletin) – Iran is emerging from its economic exile with force and its impact is being felt across Central Asia and the South Caucasus.

The new petrol export deal with Tajikistan, together with recent deals with Kazakhstan’s Air Astana and the negotiations with Armenia and Georgia over gas supplies, is a testimony of the importance that countries in the region give to Iran as a trade partner.

Iran is still a net importer of gasoline but it is now close to opening a new 18m tonnes refinery on the Persian Gulf coast, which officials say “will change the gasoline balance in Iran” and could possibly turn the country into a net exporter.

For countries like Tajikistan this is good news as it means that Iran could become a supplier of oil for both Central Asia and the South Caucasus.

Tajikistan has previously bought all its refined petrol from Russia. With Iran’s re-emergence onto the scene this over-reliance on its former colonial master is reduced, giving Tajikistan a genuine choice on where to buys its petrol.

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(Editorial from Issue No. 266, published on Feb. 5 2016)

 

China expresses interest in Kazakh Mangistau

FEB. 2 2016 (The Conway Bulletin) – Alik Aidarbayev, head of the Mangistau region of western Kazakhstan, said that only China has expressed serious interest in paying for the construction of a new oil refinery. The Mangistau region has been working on plans to build Kazakhstan’s fourth refinery for years. Mr Aidarbayev’s comments are important because they show both the financial power of China and the relative weakness of Russia. Kazakhstan has been looking to boost its refinery capacity for some time. It currently has three refineries.

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(News report from Issue No. 266, published on Feb. 5 2016)

 

Exxon bets on Kazakh oil field

FEB. 2 2016 (The Conway Bulletin) — US oil company ExxonMobil said that it still thinks the giant Kashagan oil field in the Kazakh sector of the Caspian Sea will re-start production by the end of the year. ExxonMobil also said Kashagan will be one of its four key start-up projects for 2016. Other estimates forecast that repairs to essential pipeline infrastructure could drag on until 2017. ExxonMobil owns 16.81% in the international venture that operates Kashagan.

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(News report from Issue No. 266, published on Feb. 5 2016)

Sumatec delays start of operations at Kazakhstan’s Buzachi field

FEB. 2 2016 (The Conway Bulletin) — Malaysian oil company Sumatec said that it hadn’t yet started operations at its Buzachi field in the Mangistau region, western Kazakhstan, that it bought last year for $290m from Borneo Energy. It has delayed a $105m payment to different creditors until Buzachi starts production.

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(News report from Issue No. 266, published on Feb. 5 2016)

Technip quits Azerbaijan

JAN. 22 2016 (The Conway Bulletin) — French oil service company Technip Maritime Overseas quit Azerbaijan. It didn’t give an explanation about why it had quit Azerbaijan but the collapse in global oil prices could well be the root cause. The company, which has operated in Azerbaijan since 1993, maintains regional headquarters in Turkmenistan and Kazakhstan. Last year it won a consulting contract with TAP, a gas pipeline that will bring gas from Azerbaijan to Italy.

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(News report from Issue No. 265, published on  Jan. 29 2016)

Zenith ramps up exploration in Azerbaijan

JAN. 27 2016 (The Conway Bulletin) — Toronto-listed Zenith Energy created a subsidiary called Zenith Aran Oil to explore three fields in central Azerbaijan. Current production is low, 350 barrels/day, but the company says the fields have a larger potential. Zenith said the decision to form a subsidiary is “indicative of both Zenith’s long term commitment to Azerbaijan and plans to exclusively focus on the recently acquired fields.”

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(News report from Issue No. 265, published on  Jan. 29 2016)

IMF flies to Azerbaijan for talks on $4b loan

JAN. 27 2016, BAKU (The Conway Bulletin) — An IMF delegation flew to Baku for meetings with Azerbaijan’s government over a potential loan to buffer it against a financial storm that now threatens to seriously damage its economy.

The FT newspaper reported that the the loan could hit $4b, although an IMF statement later dodged giving specific numbers.

“An IMF team will be in Baku during Jan. 28 – Feb. 4 for a fact- finding staff visit at the authorities’ request. The team will discuss areas for technical assistance and assess possible financing needs,” it said in a statement.

Azerbaijan’s finance minister, Samir Sharifov, though, played down reports of a loan.

He instead said that Azerbaijan was going to raise $2b by selling debt for the Southern Caucasus Gas Corridor Company, which manages various pipelines, and pipeline projects, running from the Caspian Sea to Europe.

“There is no urgent need for a loan, but we can raise loans to support the economy amid low oil prices,” Mr Sharifov told journalists in Baku of talks with the IMF.

If Azerbaijan did take an IMF loan it would be the first emergency loan given to a sovereign state during this current financial downturn. Taking an IMF loan would also dent Azerbaijan’s pride. Fuelled by high oil prices its economy has boomed over the past 15 years. The government has invested heavily in promoting its reputation as a bridge between the East and West, building grandiose towers and sponsoring major sports events.

But the government has failed to shift Azerbaijan from a petro-econ- omy to a more dynamic economy with several income streams. Instead, Azerbaijan still receives around 95% of its export revenue from oil sales.

And with oil prices at around 12- year-lows this has begun to hurt.

The government has slashed spending, inflation is soaring and jobs are melting away. The manat currency has dropped a third in value in the past month and frustrated ordinary people are beginning to speak out and protest against the government.

A Conway Bulletin correspondent in Baku said people in the streets were increasingly referring to the current economic downturn as a “crisis”.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 265, published on Jan. 29 2016)

Tethys looks for a new partner as debts mount up in Kazakhstan

ALMATY, JAN. 22 2016 (The Conway Bulletin) — Guernsey-based Tethys Petroleum said it will seek alternative funding after Kazakhstan-based Olisol missed a payment on a share deal agreed last year.

In a press statement, Tethys said it had received just $5m of the $15m promised by Olisol. According to Tethys, privately-owned Olisol missed the Jan. 22 deadline to send a $2m tranche of its commitment to secure a stake in the company.

Olisol has said the delay was due to currency controls in Kazakhstan linked to the sharp depreciation of the Kazakh tenge over the few past months.

And Tethys is still hopeful that it will receive Olisol’s funding.

“Should the overdue funds under the interim facility arrive in a timely manner however, Tethys will continue to work with Olisol to close the wider transaction,” Tethys, which is involved in oil and gas projects across Georgia and Central Asia, said.

Tethys needs cash to meet its debt deadlines. Last year it missed a couple of consecutive cash calls at its project in Tajikistan, the Bokhtar exploration block. Its partners in the project, China’s CNPC and France’s Total, have called on it to drop out. The Tajik government has also said it would be interested in taking a stake in Bokhtar.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 265, published on  Jan. 29 2016)