Russia needs $100B to develop Caspian
Russia will need to invest $100 billion to develop oil and gas fields in the Russian sector of the Caspian, Sergei Ivanov, first deputy prime minister, said.
Ivanov told reporters Russia needs to accelerate development of the port's shipbuilding capacity to meet the expected increase in oil and gas output over the next two to three years, when LUKoil is due to start production at the Korchagina field, Russian news agency Interfax reported.
"I believe that the capacity is insufficient at the moment," Ivanov said in comments aired on NTV television.
Ivanov's investment projections coincided with comments from LUKoil that annual production in the Russia sector of the Caspian could reach 30 million tons of oil and 20 billion cubic meters of gas by 2020. LUKoil expects to bring three Caspian fields on stream from 2009 to 2015.
Shell courts China for Gorgon stake
Officials from Royal Dutch Shell and China are holding talks on Shell plans to sell its share of Gorgon LNG to China.
Chinese President Hu Jintao will witness the signing of preliminary sales and purchase agreements between Shell and potential Chinese customers on Tuesday.
Hu arrives in Perth as part of a state visit to Australia, culminating with the APEC leaders' summit in Sydney later in the week, according to Australian media reports.
Hu will also witness the signing in Sydney of preliminary sales agreements between Woodside and potential Chinese customers for Browse Basin gas that has yet to be developed.
The Shell move represents a major turnaround for both the oil and gas company and the Chinese.
Shell has said previously it would market its 25 percent share of Gorgon LNG to the U.S. market though Sempra's Energma Costa Azul terminal being built in Baja California, Mexico.
Earlier this decade China began negotiating to take Gorgon LNG, but talks broke down when the Gorgon partners, Chevron, ExxonMobil and Shell, each with 25 percent, refused to match the terms won by Guangdong province with its 25-year, $25 billion supply deal with the North West Shelf gas project.
Gazprom pays $764M for Rusia Petroleum
Russia's natural gas monopoly Gazprom plans to pay $764 million for oil major TNK-BP's stakes in gas producer Rusia Petroleum and the East Siberian Gas Co., TNK-BP International, a TNK-BP subsidiary, said in a report obtained by Prime-Tass Monday.
TNK-BP signed a preliminary memorandum in June to sell its 62.89 percent stake in Rusia Petroleum and its 50 percent interest in East Siberian Gas Co., or VSGK, to Gazprom. TNK-BP Chief Executive Robert Dudley said in July that TNK-BP was expected to sign a final agreement on the sale before Oct. 1.
Under the memorandum, Gazprom also concluded an option agreement under which either TNK-BP or BP has the right to buy a 25 percent plus one share stake in Rusia Petroleum within a year. If either TNK-BP or BP exercises the option, Rusia Petroleum may become part of a planned joint venture with Gazprom. Dudley said in July that the venture might also include Gazprom's Baltic LNG project, TNK-BP subsidiary Rospan International or BP assets outside Russia.
Rusia Petroleum develops the Kovykta gas field in the Irkutsk Region. The field has estimated natural gas reserves of 1.9 trillion cubic meters. Russia's Interros group holds 25.82 percent in Rusia Petroleum and the Irkutsk Region's government holds 11.24 percent.
VSGK is building a gas distribution network to supply gas from the Kovykta field to consumers in the Irkutsk Region.
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Closing oil prices, Sept. 4, 3 p.m. London
Brent crude oil: $73.81
West Texas Intermediate crude oil: $74.67
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