WASHINGTON, March 2 (UPI) -- Following the recent Bratislava meeting between U.S. President George W. Bush and Russian President Vladimir Putin, the United States and Russia have announced efforts to increase cooperation on removing barriers to energy trade and investment. In a joint statement issued by Bush and Putin after the meeting, the United States and Russia intend to develop recommendations and specific proposals in areas of energy security, transparency, commercial energy partnerships and energy-related environmental problems. The statement also expressed the support of the two countries to expand a pipeline system and Russian liquefied natural gas capacity while looking to increase Russian oil and gas exports to the United States and other markets. Putin said at a news conference following the meeting: "In the years 2010, 2011, a large amount of liquefied natural gas can be supplied from Russia to the United States. Several energy projects should be initiated no later than 2008." Russia has the world's largest natural gas reserves and possesses the eighth largest proven crude oil reserves, according to the U.S. Energy Department's Energy Information Administration.
According to the Confederation of Trade Unions of Azerbaijan Deputy Chairman Aqil Dadasov, BP Azerbaijan does not intend to create a trade union by the end of 2005 as the government of Azerbaijan had hoped the company would. Dadasov stressed: "Like several other foreign companies, BP still does not want to obey the Azerbaijani laws." Under the 1994 Azeri law on trade unions and the Convention of the International Labor Organization on the rights of laborers to unite, nine employees were already eligible to create a trade union. Dadasov, meanwhile, emphasized that many foreign and private companies break the law to prevent the establishment of trade unions, which is in violation of the rights of employees to labor, rest and holiday. Dadasov said that BP Azerbaijan's employees mostly complain about how differently the company treats local and foreign staff with preferences given to foreign nationals. Dadasov also noted that the salaries of local and foreign workers are different.
Malaysian Prime Minister Datuk Seri Abdullah Ahmad Badawi announced on Feb. 28 that the oil and gas concession awarded by Petronas to Shell in the Sulawesi Sea is within Malaysia's territory and does not fall within Indonesian waters. Badawi said in response to Indonesia's protest over the concession grant: "Actually, the people at Petronas know that the area is within our territory. If the area is somebody else's, why should Petronas go in there?" Badawi said that Indonesia is claiming the Ambalat and east Ambalat blocks located to the east of Kalimantan as being under the country's administration. Badawi also noted that Indonesia claims the blocks have been under the management of Italy's ENI since 1999 and that late 2004, the east Ambalat block was awarded to U.S. Unocal. Petronas signed an agreement with Shell on Feb. 16 for the oil and gas concession; Shell won the bid tendered in Sept. 2004. Indonesia and Malaysia have laid claims in the Sulawesi Sea since 1980.
While Macedonian Prime Minister Vlado Buckovski and Russian Lukoil Vice President Dimitrij Nikolaevich Tarasov did not finalize any concrete investments agreements during their meeting on March 1, the two officials did agree to establish working groups to further explore the opportunity to construct gas stations in Macedonia. According to a statement made by Macedonian Vice Premier Minco Jordanov, "We have started the talks for investments of Lukoil in the country, aiming at boosting the competitiveness, sale, and quality of the oil products." Tarasov emphasized: "We set the guidelines for cooperation and the period for organization of the working groups for building gas stations in the country. The government has created a favorable business climate, which will enable us to make a decision on concrete investments. But we didn't discuss on investments at the meeting."
Azerbaijan's Azerigas President Alikhan Malikov has announced that construction began on a main gas pipeline in Nakhichevan Autonomous Republic as part of a project to supply gas to the region. Malikov said the Azeri government is looking to allocate $23 million to implement the project and $1 million readily available to be transferred to a special account. According to Malikov, Azerigaz intends to allocate $25 million on the project, $6.1 of which was spent by the end of 2004. The entire Nakhichevan project involves 18 stages.
Iraqi Oil Minister Thamir al-Ghadban has announced that the country's oil revenues since the collapse of the Saddam Hussein regime have hit $13.4 billion dollars. Ghadban said that Iraq's average crude oil production during the past nine months has reached 2.5 million barrels per day while average export is 1.5 million bpd, which comes mainly from southern Iraq.
Closing oil prices, Mar. 2, 3 p.m. London
Brent crude oil: $50.30
West Texas intermediate crude oil: $51.80
