UPI Energy Watch

Putin lines up gas talks in Central Asia

Russian President Vladimir Putin began a weeklong trip to Central Asia Thursday to secure gas supplies through projects involving Turkmenistan and the construction of a gas pipeline along the Caspian shore.

Putin met with Kazakh President Nursultan Nazarbayev in Astana Thursday before the two leaders headed for Turkmenistan for an informal summit with Turkmen President Gurbanguly Berdymukhammedov, the Moscow Times reported.

But Russia faces competition from the United States, the European Union and China for Turkmen gas, which was mostly closed to foreign investment under the presidency of Saparmurat Niyazov.

Putin, Nazarbayev and Berdymukhammedov are then due to hold talks.

Following Niyazov's death, foreign companies have been courting the new Turkmen leader, hoping to win a role in developing the country's energy reserves as the new leadership gives signals it will be more open to outside participation.

Russian gas giant Gazprom relies on Turkmen gas to help satisfy its supply contracts, as production at home stagnates and energy demand across Europe grows.

Kuwait wins tender to develop Malaysian block

Malaysia's Petronas said it awarded a production-sharing agreement for an offshore block to Petronas Carigali Sdn Bhd and Kufpec, a subsidiary of Kuwait Petroleum Corp.

The block covers an area of approximately 1,120 square miles and is located offshore Kota Kinabalu in water depths, the state-owned oil firm said in a statement Tuesday.

Under the agreement, Petronas Carigali will own a 60-percent stake in the block and will operate the block.

Kufpec will hold the remaining 40-percent stake and will carry 20 percent of Petronas Carigali's interest during the exploration period.

The award is based on an exploration program that includes exploration drilling of three wells and an acquisition of 3-D seismic data, with a minimum financial commitment for the block of $45 million.

Total acquires stakes in Angola

France's Total said it secured an agreement to buy stakes in two exploration blocks in Angola after the completion of a licensing competition, which Angola's Sonangol E&P started in late 2005.

Under the award, Total said in a statement it will assume a 30-percent interest and become operator of the block, which is alongside a consortium comprising Sonangol P&P, SSI Seventeen, Falcon Oil, ACR and Partex.

The group will also take a 15-percent interest in another block, which is alongside another consortium consisting of Eni, Sonangol P&P, SSI Fifteen, Falcon Oil, Statoil and Petrobras.

Total also said it has secured the sale of its 27.5-percent stake in a block and its 55.6-percent stake in the company Fina Petroleos de Angola to Sonangol.

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Closing oil prices, May 10, 3 p.m. London

Brent crude oil: $66.03

West Texas Intermediate crude oil: $62.41

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(e-mail: AMihailescu@upi.com)