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UPI Energy Watch

By ANDREA R. MIHAILESCU, UPI Energy Correspondent

Russia, Moldova to boost energy cooperation

Russian Prime Minister Viktor Zubkov plans to meet with his visiting Moldovan colleague Vasile Tarlev Wednesday to discuss ways to boost energy cooperation, the press service of the Russian government told Itar-Tass.

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"The governments of the two countries have not met for such comprehensive and large-scale talks for a long time, so Tarlev's visit to Moscow is expected to be very busy," a government source said.

Specifically, the two sides are planning to discuss the situation in the trade/economic sphere. Trade turnover between Russia and Moldova in 2007 made up $1.3 billion.

"The dynamics of cooperation in this sphere is gratifying -- the growth of trade totaled 40 percent last year," the government source said.

At the same time, Moscow "is not fully satisfied with the structure of trade, because fuels -- gas and petroleum products -- prevail in Russian exports."

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In many ways, the growth of trade turnover is explained by an increase in prices of fields. In general, the volume of accumulated Russian investments in the Moldova economy reaches $200 million, which "is a rather high figure for Moldova," the official said.

He stated that Russia and Moldova have to transfer in their economic cooperation from exchange of goods in certain fields to "issues of strategic relations in the economy."


StatoilHydro, Arkhangelsk ink MOU

Norway's StatoilHydro and the Arkhangelsk regional administration have signed a memorandum of technical and economic cooperation for a three-year period, Prime Tass economic news agency said on Tuesday, quoting the company's statement.

The company stressed in the statement that this was another important agreement in the company's long-term strategy in the Russian northwest, Prime Tass said.

The memorandum envisaged the setting up of joint working groups for pondering cooperation issues, Prime Tass said.

StatoilHydro was established on Oct. 1, 2007, by the merger of oil and gas assets of Statoil and Hydro and became one of the world's biggest offshore oil and gas companies.

Hydro's shareholders received a 32.7-percent stake and Statoil shareholders got a 67.3-percent stake in the amalgamated company.

On Oct. 25, 2007, Russia's gas monopoly and StatoilHydro signed a framework agreement on the Norwegian company's joining of the first stage of the development of the Shtokman gas condensate deposit as a partner.

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Under the agreement, StatoilHydro receives a 24-percent stake in the Shtokman Development Co., which is the project's operator. Gazprom will hold 51 percent and French Total Co. will take 25 percent in the project.


Russian railways to lay extra track to carry oil to China

Russia's state-owned railway company Russian Railways said it will invest in a project to expand the capacity of a Siberian rail line to enable Russian oil shipments to China.

The project, which was launched in 2004 and is due for completion by 2010, involves, among other things, laying a second track between the Russian towns of Karymskaya and Zabaikalsk. The latter lies on the Chinese border. A 178-kilometer section of the second track has already been laid.

The first phase of the project is to be completed in 2008.

The second phase starts in 2008 as well.

RZD plans to carry 8.8 million tons of oil to China in 2008.

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Closing oil prices, Feb. 20, 3 p.m. London

Brent crude oil: $98.15

West Texas Intermediate crude oil: $99.34

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(e-mail: [email protected])

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