Energy News  
The Price Of The Question Is Too High

Russian Natural Resources Minister Yury Trutnev. Photo courtesy AFP.
by Oleg Mityayev
Moscow (RIA Novosti) Jul 23, 2007
Russia will not revise its agreements with British investment companies developing its oil and gas fields because of the sharpening of relations between the two countries, Natural Resources Minister Yury Trutnev said Tuesday. Trutnev was speaking at a meeting of the working group of the Advisory Council on Foreign Investments attended by representatives of foreign mining companies on July 17.

As follows from Trutnev's words, Russia will maintain its present policy towards foreign investment companies: new fields will be developed under the eye of Russian state-owned companies, but foreign investors will be welcome as junior partners.

Companies in the news also attended. Last year Anglo-Dutch Shell was the biggest shareholder of the Sakhalin II gas project, but was obliged to cede a controlling stake to Gazprom following environmental complaints from the Natural Resources Ministry. On the other hand, Gazprom agreed to buy a controlling stake in the Kovykta gas condensate deposit in the Irkutsk Region from TNK-BP, a subsidiary of British Petroleum. TNK-BP had failed on its license agreement and risked losing the field without any compensation. Now it can return to Kovykta by repurchasing a 25% stake in the project under an agreement with Gazprom.

But as the diplomatic conflict between Russia and Britain sharpened, the future of British investments in Russia's oil and gas sector was again questioned. Trutnev dismissed these fears, saying that the Ministry would not revise investment agreements with British firms.

France's Total was luckier. Last week, to the surprise of many, it partnered with Gazprom in the Shtokman gas condensate deposit in the Barents Sea, one of the most promising fields in the world. The French obtained 25% of the company that will build the project's infrastructure and promised to invest billions of dollars. According to Gazprom spokesmen, other foreign companies, above all Norwegian and American ones, also have the chance to join the project later, but as Gazprom's junior partners, although foreign oil and gas giants would have liked more.

Ben Haynes, president of Exxon Mobil Russia, spoke on their behalf at the meeting. He pleaded for greater foreign access to Russian natural resources, licenses for new deposits and tax breaks to explore the most difficult of them. Remarkably, Western politicians have also been demanding greater access to Russian energy resources recently.

But Trutnev said Russia itself must control its new deposits, most of which are offshore. "The price of the question is too high," he stressed after the meeting. Russian companies Gazprom and Rosneft, controlled by the state, will develop the shelf, he said. "But this does not mean they cannot attract foreign companies," he added. He also turned down requests for tax breaks, saying they were unwarranted. "Drilling one to three exploratory wells is no problem for any serious company," he said.

With current high oil prices, the minister's remarks are to the point. Even with such restrictions, foreign companies can benefit from their investments in Russian oil and gas.

The opinions expressed in this article are the author's and do not necessarily represent those of RIA Novosti.

Source: RIA Novosti

Community
Email This Article
Comment On This Article

Related Links
Powering The World in the 21st Century at Energy-Daily.com



Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


FPL Energy Signs Deal With Citrus Energy For First Of Its Kind Ethanol Plant
Juno Beach FL (SPX) Jul 23, 2007
FPL Energy, LLC, a subsidiary of FPL Group, has announced that it has signed a letter of intent with Citrus Energy, of Boca Raton, FL, to develop the first ever commercial scale citrus peel to ethanol plant. The cellulosic ethanol plant will be owned and operated by FPL Energy and is expected to produce four million gallons of ethanol per year. It will be located on the grounds of a local Florida citrus processor.







  • FPL Energy Signs Deal With Citrus Energy For First Of Its Kind Ethanol Plant
  • The Price Of The Question Is Too High
  • The Future of Clean Coal And Carbon Sequestration
  • US And Russia Facing Energy Crises

  • Russian Anti-Nuclear Activist Killed In Attack
  • Japan Urges Power-Saving After Nuclear Shutdown
  • Sarkozy Wants All-French Energy Giant
  • India And US Close To Finalizing Nuclear Cooperation Deal

  • Invisible Gases Form Most Organic Haze In Both Urban And Rural Areas
  • BAE Systems Completes Major New Facility For Ionospheric Physics Research
  • NASA Satellite Captures First View Of Night-Shining Clouds
  • Main Component For World Latest Satellite To Measure Greenhouse Gases Delivered

  • Peru Launches Drive To Regrow Lost Forests And Jungles
  • Increase In Creeping Vines Signals Major Shift In Southern US Forests
  • Report Finds Forest Enterprises Stifled By Red Tape, Putting Forests And Incomes At Risk
  • Voracious China Gobbles Up Forests, Recycled Paper

  • NASA Researchers Find Satellite Data Can Warn Of Famine
  • Eat A Steak, Warm The Planet
  • Organic Farming Can Feed the World
  • Simulated Crop Provides Answer To Irrigation Issues

  • New Research Seeks To Enhance Alternative Fuel Integration In Public Vehicle Fleets
  • New York Congestion Plan Hits Bump In The Road
  • Florida To Adopt Tough Auto Emission Standards
  • Economical And Cleaner Cars With Lean-Burn Catalytic Converter

  • Sensors May Monitor Aircraft For Defects Continuously
  • Goodrich Contributes Technology For Environmentally-Friendly Engine Research Program
  • Sukhoi Super Jet: The Great White Hope Of The Russian Aircraft Industry
  • Sarkozy, Merkel To Tackle Airbus Problems

  • Could NASA Get To Pluto Faster? Space Expert Says Yes - By Thinking Nuclear
  • NASA plans to send new robot to Jupiter
  • Los Alamos Hopes To Lead New Era Of Nuclear Space Tranportion With Jovian Mission
  • Boeing Selects Leader for Nuclear Space Systems Program

  • The content herein, unless otherwise known to be public domain, are Copyright 1995-2007 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement