Caspian Sunrise Says Its Main Impact From Sanctions Against Russia Is Oil Price Discount
June 06 2022 - 4:16AM
Dow Jones News
By Jaime Llinares Taboada
Caspian Sunrise PLC said Monday that the main impact on its
business from sanctions against Russia remains the discount at
which its oil is traded.
The company operates in Kazakhstan, though its production is
referenced to Russia's Urals oil benchmark, which has recently
traded at a $30-$35 a barrel discount to Brent, representing a
significant loss in revenue.
However, Caspian said this discount is likely to decrease as
natural market arbitrage takes effect and some Asian countries are
expected to take advantage and switch their purchases to Urals
oil.
In addition, the company said it expects the Kazakh government
to rename national production to differentiate it from oil produced
in Russia.
"Our oil is Kazakh oil not Russian oil, even though at present
they are both termed Urals oil. It is only an accident of geography
that the current delivery mechanism takes it through Russia,"
Caspian said.
Shares at 0717 GMT were down 2.9% at 17.00 pence.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
June 06, 2022 04:01 ET (08:01 GMT)
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