Eni wins major contract to supply gas to Pakistan
Eni, the Italian oil and gas giant, said it had won an international tender to supply over 11 million tonnes of liquified natural gas to Pakistan till 2032 — a quarter of the country’s current LNG imports.
The LNG will be delivered to a new Floating Storage and Regas Unit moored in Pakistan’s second busiest port, Port Qasim, in the coastal city of Karachi.
A significant part of the LNG will be sourced from Indonesia, where the Jangkrik field operated by Eni will come on stream in the coming months.
The deal helps Eni cement its position as the leading domestic gas producer in Pakistan.
Russian tycoon behind license bid for Greece-Fyrom gas link
A recent license application submitted to Greek authorities by Windows International, discreetly placed behind various interests, for a propective interconnection project planned to link the Greek and Fyrom (Former Yugoslav Republic of Macedonia) natural gas networks, a key part of the government’s intention to establish Greece as an energy hub, has raised eyebrows and questions.
Windows International does not have a past in Greece’s energy sector. Interestingly, following research, it was determined that Alexander Lebedev, a Russian businessman referred to as one of the Russian oligarchs, is behind the initiative.
Windows International submitted a request to RAE, the Regulatory Authority for Energy, late in March for a 50-year license concerning the Greek-Fyrom gas network interconnection, planned to offer an annual capacity of 1.5 bcm and cover roughly 50 kilometers within Greek territory.
DESFA, Greece’s natural gas grid operator, recently signed an MOU with MER, its Fyrom counterpart, for the construction of a 160-km gas pipeline linking northern Greece with Stip in Fyrom. This project would provide Fyrom with direct access to Greece’s existing LNG terminal on the islet Revythoussa, just of Athens, and could also be linked with other projects, including the TAP pipeline.
The interest expressed by Windows International is believed to be linked to this plan. According to sources, the Greek Prime Minister’s office had been informed of Western International’s interest before the company submitted its license bid to RAE.
The application was submitted by Windows International Hellas SA, a subsidiary of Windows International, based in Luxembourg, RAE has informed.
The company’s Greek subsidiary is an unknown entity, while, surprisingly, obtaining information on its parent company proved difficult. The parent company does not maintain a company website. Besides its Luxembourg address, little other information is on record.
However, deeper exploration showed that Christian Tailleur, a member of the Ordre des Experts-Comtables (OEC), a professional organization of chartered accountants who possesses an extensive banking and investment past, and Toni Baev, the executive director at Balkan Utilities, active in Balkan energy-sector ventures, are both listed as Windows International representatives on the EU Transparency Register.
Furthermore, Tailleur is the head representative in Luxembourg for Cyprus’s Totalserve, active in specialized accounting, finance and other related services. Totalserve and Windows International share the same Luxembourg address. Totalserve also maintains an office in Athens.
Returning to Lebedev, the Russian tycoon, his corporate base is in London, where he publishes The London Evening Standard and The Independent newspapers. In 1995, Lebedev took over Russia’s then-troubled National Reserve Bank (NRB), which, under his leadership, was not only saved but grew.
Through NRB, Lebedev maintains a big energy-sector portfolio that includes a major stake in Russian electricity company RAO and Gazprom interests.
Qatar seeks coordination with Iran on shared field
Iranian Oil Minister Bijan Namdar Zanganeh has said Qatari officials have called for establishing a joint technical committee to coordinate on the volume of gas production from the South Pars gas field located on the two countries’ maritime border.
Speaking to reporters on the sidelines of the 22nd Iran international Exhibition of Oil, Gas, Refining and Petrochemicals in Tehran on Sunday, Zanganeh highlighted efforts made by the current Iranian administration to boost production in gas fields shared with neighbouring countries.
About 13 years ago, Iran’s production in some shared fields had come close to those of some neighbouring countries, the minister said, adding that they had accepted to hold a joint 'technical committee” meeting to coordinate the level of output from joint fields.
But after Iran fell behind them in terms of production in the following years, they refused to answer Iran’s letters to hold such a meeting, Zanganeh noted.
However, he added, as the Islamic Republic’s production neared Qatar’s recently, the Gulf country has called on Iran to hold a joint technical committee meeting to coordinate the output.
Last month, the South Pars Phases 17, 18, 19, 20 and 21 were inaugurated by Iran’s President Hassan Rouhani.
At the time of inauguration, Zanganeh said three other phases of the gas field are planned to become operational by the end of the current Iranian year (March 2018).
Zanganeh also said that after the coming into service of the remaining phases, the country’s daily gas production would rise to 800mn cubic metres, surpassing that of neighbouring Qatar.
The South Pars gas field, whose development has been divided into 24 phases, is shared by Iran and Qatar – the larger portion of the field being owned by the latter, which it calls North Dome.
It is estimated that the Iranian section of the field contains 14tn cubic meters of gas and 18bn barrels of condensates in place.
National Iranian Oil Company Says Finalizing Deal With OMV
The National Iranian Oil Company is in the final phase of talks with OMV to sign a contract to sell 40,000 barrels of oil per day to the Austrian oil and gas company, the NIOC chief said.
"The prospective agreement will help Tehran pay its outstanding debt to OMV," Ali Kardor was quoted as saying by IRNA on Sunday.
Commenting on NIOC arrears to OMV, the official added, "The Austrian giant had discovered an oil field in Iran but had not been paid for the exploration."
According to Kardor, OMV will be entitled to 7.25% of total value of exports for an unknown period until the dues are settled.
The senior oil official echoed calls by higher-ups in the government, calling for normal economic and trade ties to the outside world on the basis of mutual interest.
"Development cannot and will not succeed in isolation," Kardor said, noting that an effective strategy to promote economic growth in developing states like Iran is through close collaboration with international companies, attracting foreign investment as well as technology transfer.
Kardor added that as per the budget law of the current fiscal (March 2017-18), the Oil Ministry is willing to issue bonds worth $3 billion to raise investment in joint oilfields. He did not provide details.
Effects of Nuclear Deal
Kardor asserted that the sanctions removal in January 2016 revived the incapacitated oil sector as Tehran aims to invest billions of dollars in upstream and downstream projects by attracting foreign investment.
"Had it not been for the nuclear agreement (with the six world powers], our oil exports would have plunged to 450,000 barrels per day instead of 2.5 million bpd. Moreover, we would have been forced to sell oil for food and medicine."
Under the sanctions regime, Iran's oil production fell to 2.5 million barrels per day from nearly 4 million bpd and exports to 1 million barrels daily.
Highlighting the current exports level at 2.5 million bpd, he noted that "exports reached a record high of 3.047 million barrels a day in December."
Rejecting speculations on offering high discounts to foreign dealers selling Iran's oil, Kardor said the state-owned oil company is not underselling crude simply because oil prices are function of the international market.
Asked about preliminary assessments of multinationals' proposals to develop oilfields, he said, " Russia's Lukoil and Zarubezhneft, Indonesia's Pertamina, Japan's Inpex, French energy giant Total S.A. and Denmark's Maersk Group, the state-owned China National Petroleum Corporation (CNPC) and Austria's OMV are among the majors that have provided NIOC with the results of their studies."
Oilfield study agreements entail surveys in six months, after which the companies should present development proposals.
Iran is pushing for new deals with multinationals to raise crude production despite a global oversupply and persistently low prices. It is now pumping close to 4 million barrels a day, a level last seen before the tightening of international sanctions in 2011.