Tag Archives: hydrocarbons

Tethys Petroleum pulls out of Uzbekistan

JAN. 2 2014 (The Conway Bulletin) — In another blow to Uzbekistan’s image as a place to do business, London-listed Tethys Petroleum said that it is pulling out of the country.

In a statement circulated on Jan. 2, the company said it had pulled out of Uzbekistan “due to recent changes in the business climate and political environment”.

It expects that disengaging from its only project in Uzbekistan, the North Urtabulak oilfield in central Uzbekistan, will take three months.

Last month, Uzbek authorities arrested the head of Tethys Petroleum in Uzbekistan and accused the company of stealing oil worth $30m to $40m.

Tethys’ decision may also be linked to the ongoing political instability in Uzbekistan. Gulnara Karimova, the eldest daughter of President Islam Karimov, is currently fighting to maintain control of her assets and influence. Observers have said that political instability may embroil Uzbekistan for some time.

But Tethys’ withdrawal does highlight the problems for foreign companies of doing business in Uzbekistan.

They complain of interference from the authorities, random tax bills and police visits.

Last year Russian telecoms company MTS pulled out of Uzbekistan after a long-running and very public row with the tax authorities. Oxus Gold, a British gold mining company, quit Uzbekistan in 2011 also after a run-in with the authorities.

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(News report from Issue No. 166, published on Jan. 8 2014)

Azerbaijan buys out Greek utility

DEC. 22 2013 (The Conway Bulletin) — Azerbaijani state energy company SOCAR has completed its purchase of a 66% stake in Greek gas distributor DESFA, media reported quoting Greek officials. According to reports, SOCAR agreed to pay 400m euros for the stake. Azerbaijan is building a major pipeline to send gas to Europe via Turkey, the Balkans and Greece.

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(News report from Issue No. 166, published on Jan. 8 2014)

Tethys Petroleum leaves Uzbekistan

JAN. 2 2014 (The Conway Bulletin) — London-listed energy company Tethys Petroleum said it will quit Uzbekistan because of a change in its political and business environment. Last month, Uzbek authorities accused Tethys of stealing oil. Tethys operates throughout Central Asia and the South Caucasus.

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(News report from Issue No. 166, published on Jan. 8 2014)

Energy consortium signs deal with Azerbaijan

DEC. 16 2013 (The Conway Bulletin) — A consortium of foreign energy companies led by BP officially signed a deal to develop the second phase of the Shah Deniz gas field in the Caspian Sea with the Azerbaijani government. The deal will trigger the start of a $45b project that should, from 2019, deliver 20% of the EU’s gas.

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(News report from Issue No. 165, published on Dec. 18 2013)

Statoil exits Azerbaijan’s offshore project

DEC. 15 2013 (The Conway Bulletin) — In a surprise announcement, Statoil, the Norwegian state-owned energy company, said it was selling a 10% block of its 25.5% stake in the Shah Deniz gas project in the Caspian Sea.

Statoil and France’s Total have also pulled out of the consortium building the TANAP pipeline that will pump gas to Europe from the Caspian Sea to Europe after Turkey said it wanted to increase its stake in the project.

Neither moves are hardly a ringing endorsements of Azerbaijan or Caspian Sea energy.

Statoil will sell its 10% stake in the Shah-Deniz project for a total of $1.45b. Analysts said that the price was a good one for Statoil. BP will buy a 2.3% stake and SOCAR, Azerbaijan’s energy company, will buy a 6.7% stake.

Shah Deniz-2 will cost $45b and provide up to 20% of the EU’s gas needs from 2018. It was finalised on Dec. 17 in Baku. It will also turn Azerbaijan into a major global gas supplier and reduce its dependency on Russia as a conduit for its gas. More pipelines, including TANAP, are being built directly from the Caspian Sea to Europe.

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(News report from Issue No. 165, published on Dec. 18 2013)

Gazprom buys Kyrgyzstan’s gas system

DEC. 11 2013 (The Conway Bulletin) — Kyrgyzstan’s parliament agreed to sell the debt-ridden Kyrgyzgaz to Russian gas monopoly Gazprom for a symbolic $1. The deal increases the Kremlin’s leverage over Kyrgyzstan. Gazprom has pledged to spend about $610m modernising Kyrgyzgaz and has guaranteed gas supplies to Kyrgyzstan for a year.

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(News report from Issue No. 165, published on Dec. 18 2013)

Italy investigates ENI’s pressures on Kazakh case

DEC. 16 2013 (The Conway Bulletin) — Italian officials are investigating whether the Kazakh government pressured energy company ENI to influence ministers in Italy into deporting the wife and daughter of fugitive opposition leader Mukhtar Ablyazov in May, media reported. An Italian TV interview with an anonymous ENI manager triggered the investigation.

(News report from Issue No. 165, published on Dec. 18 2013)

Offshore project expansion costs assessed in Azerbaijan

DEC. 5 2013 (The Conway Bulletin) — The second phase development of the Shah Deniz gas field in the Azerbaijani sector of the Caspian Sea will cost $40b, the regional president for BP’s operations in Azerbaijan, Georgia and Turkey, Gordon Birrell said. BP is the operator for Shah Deniz, considered to be the main driver of Azerbaijan’s future prospects.

(News report from Issue No. 164, published on Dec. 11 2013)

Global Witness unveils corruption in Azerbaijan

DEC. 10 2013 (The Conway Bulletin) — Global Witness, the anti-corruption lobby group, published a report that alleged widespread use of offshore accounts and shell companies to move cash out of state-owned energy company SOCAR. Azerbaijan denied any wrongdoing.

(News report from Issue No. 164, published on Dec. 11 2013)

Uzbekistan investigates Tethys

DEC. 4 2013 (The Conway Bulletin) — The Uzbek authorities have launched an investigation into the alleged theft of oil by Guernsey-based Tethys Petroleum, media reported. Tethys Petroleum, which operates across Central Asia, denied any wrongdoing. Complaining of pressure from the authorities, foreign investors have been leaving Uzbekistan.

(News report from Issue No. 164, published on Dec. 11 2013)