FSUOGM - Former Soviet Union Oil & Gas

EU sanctions envoy takes on delicate “compliance” issues on visit to Kazakhstan

Given Russian-Kazakh economic integration, Europe cannot hope to stop every illicit shipment from the Central Asian country to Moscow’s war economy, but there are some notable successes.

Russian refineries see 2.5% dip in oil deliveries in 2024

Crude oil deliveries to Russian refineries declined by 2.5% year on year in 2024 to 271.4mn tonnes, while refining volumes fell by 3.1% to 266.5mn tonnes.

Kazakh wealth fund buys shares in KMG

Kazakhstan’s National Welfare Fund Samruk-Kazyna acquired more than 346,500 ordinary shares of national oil producer KazMunaiGas in the fourth quarter of last year.

Kazakh producer Lucent to help revive Borankol gas processing project

Kazakh privately-owned junior producer Lucent Petroleum plans to produce up to 1.7 mcm of gas per day at the Munaybai field in west Kazakhstan and transport it via pipeline to the Borankol gas processing plant.

Russia sees 14% decline in new well commissioning in 2024

The number of new oil wells commissioned in Russia dropped by 12% last year to 7,610, the Moscow-based Vedomosti newspaper reported on January 28, as Russian operators cut down on drilling in response to OPEC+ restrictions on production.

Moldova begins gas supplies to separatist region Transnistria under short-term fix to energy crisis

Moldova’s state energy trader Energocom will purchase natural gas from the EU market and/or Ukraine to supply separatist region Transnistria with up to 3mn cubic metres per day, financed from the €20mn of the €30mn grant extended by the EU.

Russian gas flow to EU via TurkStream up 27% in January

Exports of Russian natural gas to the EU via the TurkStream pipeline rose by 27% year on year in January, reaching 1.56 bcm.

Sibur shuts down Kstovo petchem plant after drone strike

Russia’s biggest petrochemicals producer Sibur has suspended product shipments at its Kstovo production complex after debris from a downed drone fell onto its premises, causing a fire.

COMMENT: Ukraine eyes key role in Azerbaijani gas transit to Europe

Kyiv wants to become a transit hub for Azerbaijani gas after ending Russian gas transport, but plan faces political, logistical and economic hurdles.

Ukraine’s Naftogaz begins importing natural gas amid supply concerns

Ukraine’s state energy company Naftogaz has started importing natural gas from abroad, despite earlier assurances that the country would rely solely on domestic production for the winter heating season.

OPEC+ weighs Trump policy as oil prices jump on tariff concerns

COMMENT: Trump should do a deal with OPEC and tighten sanctions further to collapse the Russian economy

As its parting shot, the Biden administration imposed the toughest sanctions yet on Russian oil. The incoming Trump administration is changing tack and talking about negotiations, but should tighten sanctions further and cause Russia real pain.

KMG awards Geneva-based BGN contract to lift 520,000 tonnes of CPC Blend per month in 2025

Kazakhstan’s state oil and gas company, KazMunayGas (KMG), has reportedly awarded Geneva-based trading firm BGN a contract to lift up to 520,000 tonnes of CPC Blend oil per month in 2025.

SOCAR enters Israeli Tamar gas field with 10% stake acquisition

Azerbaijan's State Oil Company (SOCAR) has signed an agreement to acquire an effective 10% stake in the Tamar gas field, one of the largest offshore gas reservoirs in the Mediterranean according to company press release.

Russia to audit its oil tanker fleet in wake of Kerch disaster

Two Russian oil tankers were caught in storm on December 15, with one of the vessels breaking in two and sinking, while the other was damaged, causing her to drift for several hours until running aground.

China retakes number one position from Russia in exports to Turkey

Russia in 2024 lost its position as Turkey's main source of goods imports, with China edging ahead to regain the lead it held before 2022, official statistics from the Turkish Statistical Institute (TUIK, or TurkStat) showed on January 31.

Jade Gas coal bed methane project strategy “well advanced” in South Gobi, Mongolia

ASX-listed Jade Gas on January 31 said it is well advanced in delivering on its commercial strategy for its coal bed methane (CBM) gas project at the Tavantolgoi basin in Mongolia in the South Gobi region of Mongolia.

Azerbaijan’s SOCAR acquires stake in Israeli gas field

The NOC has made its first acquisition in the East Mediterranean, after its award of acreage in a licensing round went cold amid geopolitical instability

Uzbekistan’s Saneg turns flared gas into fuel

By utilising associated gas produced at oilfields rather than flaring it, Saneg is bolstering Uzbekistan's energy supply while tackling emissions.

Will the Nord Steam gas pipelines be turned back on soon?

The idea of restarting Russian gas deliveries to Europe via the damaged Nord Stream 1 & 2 pipelines has been introduced as a possible bargaining chip in the mooted Russo-Ukraine ceasefire talks. If it happens it would solve many of Europe's problems.

Seven bid for Lukoil’s Bulgarian refinery, PM Zhelyazkov says

Lukoil has been actively seeking to sell its Bulgarian assets since December 2023, when Sofia banned imports of Russian crude oil.

Turkmenistan to run international tender for construction of soda ash, caustic soda plants

Naftogaz says Ukraine has sufficient gas reserves for heating season

Ukraine’s state energy company Naftogaz Group has assured that the country has enough gas reserves to sustain the heating season, even as officials warn of potential import needs if demand spikes in freezing conditions.

Kazakhstan bans export of petrol and diesel fuel by road and rail

Kazakhstan has officially banned the export of petrol and diesel fuel by road and rail.

Kazakhstan plans to export 250,000 tonnes of oil from Kashagan via BTC in 2025

Kazakhstan’s state-owned energy company, KazMunayGaz, plans to export approximately 250,000 tonnes of crude oil from the giant Kashagan oilfield via the Baku-Tbilisi-Ceyhan (BTC) pipeline in 2025, the company announced on January 29.

OPEC+ to discuss Trump proposal on US oil output expansion

The OPEC+ alliance of major oil producers is set to deliberate on US President Donald Trump’s recent proposal to expand American oil output, Kazakh Energy Minister Almasadam Satkaliyev told a briefing on January 29.

Transnistria accepts EU’s €30mn aid for energy crisis but asks for clarifications

The separatist region Transnistria in Moldova accepts the EU's help to overcome the deep energy crisis caused by the interruption of Russian gas supplies at the beginning of this year. However, specific use of the aid is prompting controversy.

Azerbaijan’s oil fund faces pressure as production declines, seeks diversification

Azerbaijan’s sovereign wealth fund, the State Oil Fund of Azerbaijan (SOFAZ), is projected to generate $5.76bn (AZN9.8bn) from profit oil and gas sales in 2025, according to the draft state budget.

Germany’s Russian LNG imports surge over 500% in 2024, via other countries

Germany talks loudly about ending Europe’s imports of Russian gas, but as a result of alternative sources of energy, it has seen imports of Russian LNG soar by 500% in 2024 y/y, worth a total of €7.32bn, delivered via other European countries.

Ukraine's stored gas falls to critically low levels, imports urgently needed

Ukraine's natural gas reserves in its massive underground storage tanks have fallen to a critical level and the country urgently needs to import more gas, says Serhiy Makogon, the former head of Ukraine's gas transit operator.

Kazakh GDP grows 4.8% in 2024

Kazakhstan's economy expanded by 4.8% in 2024, Prime Minister Olzhas Bektenov announced on January 28 during a government meeting chaired by President Kassym-Jomart Tokayev.

Kazakhstan may renegotiate contract terms on existing PSAs covering major oil fields

President Kassym-Jomart Tokayev told a government meeting on January 28 to accelerate negotiations with international oil companies to extend existing production sharing agreements (PSAs) under revised terms more favourable to Kazakhstan.

Russia reportedly outbids EU's offer with loan for Transnistria

The unrecognised separatist region Transnistria in Moldova will receive a loan from Russia for natural gas imports through a European supplier. Alternatively, EU gave Moldova a €30mn grant and promised long-term support scheme, to be further inked.

Ukraine considers selling Sense Bank, privatising stake in Ukrnafta

Ukraine is prepared to privatise the state-run Sense Bank and is exploring the potential sale of a stake in Ukrnafta, the country’s largest oil producer.

Denmark approves preservation work at damaged Nord Stream 2 gas pipe

Denmark’s Energy Agency announced on January 28 that it had authorised Nord Stream 2 AG, a subsidiary of Russia’s Gazprom, to carry out preservation work on the Nord Stream 2 gas pipeline in the Baltic Sea.

EU to include Hungary and Slovakia in Ukraine gas talks

The European Commission will continue discussions with Ukraine over natural gas supplies to Europe, including Hungary and Slovakia in the negotiations.

Trump calls on OPEC to ramp up oil supply

"Right now the price is high enough that that war will continue," Trump said at Davos.

Expect no sanctions relief for Russian LNG

Preventing more Russian LNG entering the fast-growing gas markets of Asia over the coming years will help ensure extra US supply has a home.

Russian LNG exports hit new record in 2024

Russia exported a record 33.6mn tonnes of LNG in 2024, up 4% from the previous year, according to data from Kpler cited by Russian news agency RBC this week.

EU gives Moldova €30mn as short-term fix to energy crisis and promises longer-term plan

Targeted support to restore electricity and heat supply in the separatist Transnistria region.

BP eyes late-2024 ACG gas output, invests $200mn in solar, restores Shah Deniz platform

BP Azerbaijan expects first production under the Azeri-Chirag-Gunashli (ACG) gas development project by late 2024, according to BP Azerbaijan spokesperson Tamam Bayatli.