Tag Archives: business

Kazakhstan- based Tethys losses rise

MARCH 29 2016 (The Conway Bulletin) – Guernsey-based Tethys Petroleum said its losses more than quadrupled in 2015 compared to the previous year, mostly due to the depreciation of some of its Kazakh assets. Tethys lost $74.6m in 2015. According to the company’s yearly report, the tenge depreciation also dented revenues. The tenge lost around half its value against the US dollar in 2015.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 274, published on  April 1 2016)

Afghan power line started, says Turkmen official

MARCH 28 2016 (The Conway Bulletin) – Turkmenistan officials said the new 146km Yoloten-Tahtabazar power transmission line to Afghanistan has started operations, reinforcing another electricity supply route into South Asia from Central Asia. Turkmenistan produced 22.5b kWh in 2015 and it is looking to increase both production and export.

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(News report from Issue No. 274, published on April 1 2016)

 

Presidential Office empties the most famous store in Tajikistan

MARCH 28 2016, DUSHANBE (The Conway Bulletin) — The tops floors of the most prominent department store in Tajkiistan’s capital, the Soviet-era TSUM, are eerily quiet.

Most of the traders who sold mobile phones, clothes and Tajik national mementos to foreign tourists have quit their leases. They said the Presidential Administration took over the company that owned the store earlier this year and has forced up rent.

Aziz, a 26-year-old man who sold Tajik-themed gifts, told The Conway Bulletin’s Dushanbe correspondent that rent used to be around $7 per square metre.

“Now they want us to pay more than $20 per square meter,” Aziz said, the anger clearly audible in his voice.

He shook his head, more to himself than to anybody else, and continued to pack up his products into boxes scattered across the floor. Like most of the other small traders he was quitting TSUM.

“I am moving out because I cannot pay the rent. Trade is not good in TSUM, not so many people come nowadays,” he said.

Traders said that a month ago, President Emomali Rakhmon’s Executive Office, which is headed by his daughter Ozoda Rakhmon, took control of the company that ran TSUM. The Investment and State Property Control Committee said that TSUM was privatised illegally in the 1990s. Officially, TSUM has now been re-nationalised although critics of Mr Rakhmon have said that it is now effectively under the control of his family.

Built in 1960’s, TSUM is one of the few remaining Soviet-built buildings in Dushanbe and had been one of the most popular trading centres. But Tajikistan is hurting from a sharp economic downturn. The Bulletin’s correspondent said that while bigger shops selling various Western brands were still operating on the ground floor of TSUM, the first and second floors were almost entirely empty.

Mr Rakhmon’s Presidential Administration has not commented on allegations that it has inflated rent at TSUM but the accusations will bolster critics who accuse the president of corruption.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 274, published on April 1 2016)

 

ARETI looks for business in Turkmenistan

MARCH 30 2016 (The Conway Bulletin) – Igor Makarov, head of Russian company ARETI, previously known as ITERA, met with Turkmen president Kurbanguly Berdymukhamedov to discuss cooperation in the energy sector. ARETI works in 21 offshore blocks in the Turkmen section of the Caspian Sea through a contract signed in 2009.

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(News report from Issue No. 274, published on  April 1 2016)

 

Turkmenistan discounts Turkish cargo

MARCH 29 2016 (The Conway Bulletin) – The Turkish International Transport Association said Turkmenistan has started applying a 20% discount on “roll-on, roll-off” shipments of goods coming in from Azerbaijan since March 3. The discount on the fee has already helped boost Turkish-Turkmen trade relations according to the Association chief Fatih Sener. As it eyes markets for its gas, Turkmenistan is trying to improve relations with Turkey.

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(News report from Issue No. 274, published on April 1 2016)

 

Kyrgyzstan approves White Cliff plans

MARCH 30 2016 (The Conway Bulletin) – The Kyrgyz government approved exploration plans laid out by Australian miner White Cliff Minerals for its Aucu gold project. The agreement extends the exploration licence for White Cliff to 2020. Aucu, located in west Kyrgyzstan, holds an initial inferred resource of 4.83m tonnes of gold. Despite friction with its biggest foreign investor, Centerra Gold, at the Kumtor gold mine, Kyrgyzstan is still trying to woo foreign companies.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 274, published on  April 1 2016)

 

Azerbaijani SOCAR’s deal to buy Greek gas distributor put into doubt

MARCH 28 2016 (The Conway Bulletin) – Belgian gas distributor Fluxys has pulled back from buying a 17% stake in Greece’s gas pipeline operator DESFA, media reported, potentially derailing a deal by Azerbaijani energy company SOCAR to buy 49% of the Greek company.

Azerbaijan’s SOCAR had initially agreed to buy a 66% stake in the Greek distributor in 2013 for €400m ($454m) but the European Commission stepped in and said that a 2009 regulation meant it could only buy a 49% stake. This effectively froze the deal until SOCAR found a company to agree to buy the 17% stake.

The pressure is now on SOCAR, which has until the end of 2016 to comply with EU regulations and find another purchaser.

In the current low-priced market, though, this will not be easy and SOCAR admitted as much.

“Currently we are in the process of reducing the stake of DESFA through sales to potential buyers in Europe and this process is expected to be completed in late 2016,” the Natural Gas Europe website quoted an unnamed source at SOCAR as saying.

For SOCAR, buying a stake in DESFA is important. It is due to play an important technical back-up role in Greece for the final section of a pipeline pumping gas to Europe from Azerbaijan.

The Greek newspaper Ekathi- merini quoted unnamed sources as saying that the deal with Fluxys was off. When reached by phone, though, Fluxys declined to confirm one way or the other.

A Fluxys spokesman said: “Since the beginning, we have not been involved directly as a company. It is a matter that Fluxys shareholders need to address.”

Neither Belgium’s Publigas, which owns 77.7% in Fluxys, nor Canada’s Caisse de depot et placement du Quebec, which owns 20% in Fluxys, could be reached for a comment.

Fluxys had looked like a good fit to buy DESFA because it owns a 19% stake in the Trans-Adriatic Pipeline (TAP), the planned final section of a network of pipelines stretching from the Caspian Sea to Europe.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 274, published on  April 1 2016)

 

Russian tourism to Azerbaijan to rise

MARCH 28 2016 (The Conway Bulletin) – The number of Russian tourists going to Azerbaijan for holidays will increase by 50% according to calculations by Russian financial newspaper Kommersant. Due to diplomatic sanctions against Turkey, the Russian government banned Turkey as a holiday destination for its citizens.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 274, published on April 1 2016)

 

Azerbaijan’s SOCAR applies to ADB for Shah Deniz loan

MARCH 28 2016 (The Conway Bulletin) – Azerbaijan’s state-owned energy company SOCAR said it applied for a $450m loan from the Asian Development Bank (ADB) to help pay for the expansion of its Shah Deniz gas project.

The loan, according to both ADB and SOCAR, is aimed at financing the second phase of the project, which the company plans to bring online by 2018. Shah Deniz is core to Azerbaijan’s future gas plans.

BP, which develops the field together with SOCAR, said the expansion of the Shah Deniz project will cost around $28b and will add 16b cubic metres annually to the current production of around 10b cubic metres.

Gas produced at Shah Deniz 2 is already booked for export to Georgia and Turkey in 2018 and further on to Europe by 2019, with the completion of the Southern Gas Corridor.

Unnamed ADB sources told Natural Gas Europe: “It is in the processing stage. Once approved, the loan will be provided under the state guarantees.”

There was no information on the timeline of the loan.

SOCAR, hit by sustained low oil prices, has applied to various sources for financing and has sought to divest from some of its unprofitable ventures to raise cash for its core projects.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 274, published on  April 1 2016)

 

Stock market: Nostrum Oil & Gas

APRIL 1 2016 (The Conway Bulletin) – Nostrum Oil & Gas has suffered a long period of sustained low oil prices, which has hit both its revenues and its stock price.

Nostrum’s revenues fell by a staggering 42% last year, accompanied in the downward trend by lower production volumes.

And, as shown in the graph, Nostrum’s share price has continued to fall, down 48.7% in Q1 2016.

Nostrum, however, remains confident about its long term objectives and pointed out in its full year results that it had cut costs and was investing in its processing capacity.

It made no mention of the failed takeover offer for Tethys Petroleum of last summer, which hit Nostrum’s share price, especially after Tethys started talks with Kazakhstan’s Olisol last November.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 274, published on  April 1 2016)