Tag Archives: business

Turkmenistan hosts Poroshenko in snub to Moscow

OCT. 29 2015 (The Conway Bulletin) – In a snub to Moscow, Turkmen President Kurbanguly Berdymukhamedov hosted talks with Ukrainian President Petro Poroshenko on sending gas to Ukraine.

At the meeting in Ashgabat the two leaders signed several intergovernmental agreements on industrial and agricultural cooperation. Energy, though, was top of the agenda.

No deal was signed but both leaders said progress had been made.

“We are ready to increase supplies to Ukraine of products from our domestic fuel and energy complex and begin implementing joint projects in this sphere,” Mr Berdymukhamedov said according to state media.

Both Ukraine and Turkmenistan have fallen out with the Kremlin.

The Ukrainian government is locked in a protracted civil war in the east of the country against rebel forces funded by Russia. Turkmenistan has fallen out with Russia’s Gazprom over gas contracts. Earlier this year, Mr Berdymukhamedov called Gazprom an “unreliable partner”.

Russia has begun to cut gas supplies to Ukraine, forcing it to look for alternative suppliers. It has also sharply lowered its purchase of Turkmen gas over the past few years.

The biggest problem for Turkmenistan is how to avoid using Russia’s extensive pipeline network to send gas to Ukraine. It is exploring sending gas and oil products across the Caspian Sea, potentially via a new pipeline but also by ship. From there, gas and oil products can be transported to the Black Sea coast and then shipped to Ukraine.

Media said Mr Berdymukhamedov was due in Kiev next year.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 254, published on Oct. 30 2015)

 

German firm to quit Turkmenistan

OCT. 22 2015 (The Conway Bulletin) — DEA Deutsche Erodel AG, a German oil and gas company, may be close to quitting Turkmenistan due to excessive bureaucracy, the exiled Alternative News Turkmenistan website reported. Lengthy custom clearance periods and slow licensing processes were the main complaints. The company has not commented.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 254, published on Oct. 30 2015)

Kazakhstan’s Intergas to buy back Eurobonds

OCT. 26 2015 (The Conway Bulletin) — Intergas Central Asia said it would buy back $270m of its outstanding Eurobonds due in 2017, media reported. Intergas is a subsidiary of Kazakhstan’s state owned pipeline company KazTransGas. Analysts said the buyback was positive for Intergas as it reduced its exposure to Kazakh banks.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 254, published on Oct. 30 2015)

Montenegro-Aerbaijan sign deal

OCT. 27 2015 (The Conway Bulletin) – On a trip to Baku, Montenegro PM Milo Dukanovic signed bilateral customs deals. Anti- corruption lobbyists have queried improved relations between Azerbaijan and Montenegro. Companies linked to the Azerbaijani state have invested heavily in Montenegro’s tourism sector.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 254, published on Oct. 30 2015)

 

Kazakh government to fine Karachaganak $2b, say sources

ALMATY, OCT. 27 2015 (The Conway Bulletin) — The Kazakh government is considering levying a heavy fine against Karachaganak, Kazakhstan’s largest gas field, worrying observers who said this could mean a revival of resource nationalism.

According to sources quoted by Bloomberg News, the Kazakh government is likely to impose a penalty against the consortium operating Karachaganak for as much as $2b, in an attempt to earn quick cash for its crisis-hit state budget.

The sources, described as being familiar with the project, said the fine was for failing to meet contractual obligations.

A $2b fine would be the largest-ever penalty imposed on an energy consortium in Kazakhstan, exceeding a 2014 fine on Kashagan of $737m and a 2007 claim on Tengiz for $609m. British BG Group and Italian Eni own 29.5% each. Chevron and Lukoil are the smaller shareholders with 18% and 13.5% respectively. State-owned Kazmunaigas bought a 10% stake in the project in 2012, after a two-year tax dispute.

BG Group, Eni, Kazmunaigas and the Kazakh government all declined to comment.

The Bloomberg story hinted at resource nationalism, said Lawrence Markowitz, professor of Political Science at Rowan University.

“Contestation between Kazakhstan’s government and multinational corporations centres on contracts and this could be a case of a government using fines and penalties to be more predatory on the wealth these deposits generate,” Mr Markowitz told the Bulletin.

Other observers said Kazakhstan may be positioning itself ahead of a contract renegotiation.

“There is certainly pressure in Kazakhstan to change the Production Sharing Agreement contracts signed in the 1990s, because they were too generous for foreign companies,” said Nygmet Ibadildin, professor of Energy Policy at KIMEP University.

Shell agreed to buy BG earlier this year but speculation has mounted that Kazakhstan could exercise its preemptive rights to jump in and buy BG’s share.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 254, published on Oct. 30 2015)

Japan’s Sumitomo to build Turkmenistan power plant

OCT. 23 2015 (The Conway Bulletin) — Japan’s Sumitomo Corporation will build a $300m power plant in Turkmenistan, a significant move for relations between the countries and the Turkmen gas sector.

Sumitomo and state-owned Turkmengaz signed a deal on a new, 400 megawatt gas-fired thermal power plant to be built in the north of the country.

The deal was signed during Japanese PM Shinzo Abe’s visit to Turkmenistan. In total, Japan committed over $18b for various investments in energy and infrastructure projects in Turkmenistan, strengthening economic and diplomatic ties between Tokyo and Ashgabat.

Another Japanese company, Mitsubishi Hitachi Power Systems will provide the gas turbines for the new plant, which is expected to be completed by 2018.

The new plant will allow Turkmenistan to improve its electricity grid, boosting power generation in the north of the country, far removed from the gas-producing regions in the south. Demand for electricity is growing in Turkmenistan.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 254, published on Oct. 30 2015)

 

Georgia’s energy minister to visit Iran

OCT. 28 2015 (The Conway Bulletin) – Highlighting increasingly good relations between Georgia and Iran, Georgian energy minister Kakha Kaladze said he would travel to Tehran next month to meet his Iranian counterparts. Georgia needs to increase the amount of gas it imports to meet demand.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 254, published on Oct. 30 2015)

 

Nostrum cuts expectations in Kazakhstan

OCT. 27 2015 (The Conway Bulletin) — Hit by delays in infrastructure maintenance, London-listed Nostrum Oil & Gas reduced its production target for 2015 by 9% to 41,000 barrels of oil equivalent per day. In its Q3 statement, Nostrum said repair work at a Kazakh state-owned gas export pipeline was now complete and production was back to normal.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 254, published on Oct. 30 2015)

Microsoft launches programme in Armenia

OCT. 23 2015 (The Conway Bulletin) — US’ Microsoft launched a new so- called acceleration programme for start-up companies at its Innovation Centre in Armenia. People working on 14 new projects selected for the programme will receive in- depth training in California, Australia and Russia. Armenia has been looking to attract increased investment from tech start-ups over the past few years and has brokered various deals with Microsoft.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 254, published on Oct. 30 2015)