Russian gas giant Gazprom is holding talks with China on gas deliveries and the price of gas.
Alexander Medvedev, deputy chief executive of Gazprom, said the company plans to export 68 billion cubic meters of gas annually from the fields in Siberia, according to the Russian Oil and Gas Report.
In 2006 the China National Petroleum Corp. secured a memorandum on supply to import 68 billion cubic meters of gas annually after 2011.
Two routes, western and eastern, were planned for its transportation. The western route makes provisions for the construction of the Altai gas pipeline. The eastern route makes provisions for gas supply from the fields of Sakhalin and Kovyktinskoe including extension of the Sakhalin-Vladivostok pipeline to China.
However, according to the latest data of the Ministry of Industry and Energy, gas production at Kovyktinskoe will not begin earlier than 2017.
Medvedev said Gazprom is going to export 68 billion cubic meters of gas a year from the fields of Siberia and is also negotiating with China on supply of liquefied natural gas.
Gazprom to develop fields in Eastern Siberia
The government has placed Gazprom in charge of coordinating the program to develop gas fields of Eastern Siberia and the Far East.
The overall gas resources in the east of Russia exceed 67 trillion cubic meters. Onshore reserves amount to 52.4 trillion cubic meters accounting for 30 percent of the overall onshore reserves of the country. Offshore reserves amount to 15 trillion cubic meters accounting for one-fifth of the overall offshore gas reserves of Russia.
However, according to the Ministry of Industry and Energy, these reserves are only explored by approximately 8 percent.
On Sept. 7 Anatoly Yanovsky, director of the Fuel and Energy Department of the Ministry of Industry and Energy, said more than $95 billion would be needed for investment.
Brazil’s Petrobras eyes offshore investments
Petrobras has discovered more oil in the Santos basin and has kick-started the Canapu field development in the Espirito Santo basin, according to media reports.
Petrobras has extended the oil reserves in the highly promising subsalt area in the Santos basin after finding hydrocarbons with the Carioca exploration well.
The discovery in the block was drilled to below the salt layers in the Santos basin, not far from the coast. According to partner BG Group, the well was drilled in 1.33 miles of water and tested 2,900 barrels of oil and 57,000 cubic meters of gas per day.
"This is a significant discovery offshore Brazil and builds on the Tupi oil discovery made last year in the BM-S-11 concession. This is the third consecutive exploration well to discover hydrocarbons in the new Santos basin pre-salt play," said Frank Chapman, BG chief executive.
Petrobras plans to invest more in the area with other wells and use new technologies to develop the existing oil discoveries. The company will submit an assessment of the discovery areas to the national petroleum authority by the end of the year to ensure it can continue its investments in 2008.
Closing oil prices, Sept. 13, 4 p.m. London
Brent crude oil: $76.83
West Texas Intermediate crude oil: $78.84