UPI Energy Watch

Two Koreas hold oil venture talks

Leaders of the two Koreas held talks to discuss developing and exploring for oil at the latest summit in Pyongyang.

"The oil development issue was discussed at the summit, and North Korean leader Kim Jong Il expressed keen interest in the South's oil field and gas exploration projects," Finance Minister Kwon O-kyu told reporters.

"South Korea also discussed the development of resources in North Korea, including oil fields," he said.

Kwon said the two sides may continue to discuss the oil development issue at talks of the proposed Joint Committee for Inter-Korean Economic Cooperation, a committee to be formed through upgrading the status of the existing Inter-Korean Economic Cooperation Promotion Committee in an effort to accelerate bilateral economic cooperation.

Kwon played down concerns about potential financial burdens on the government from proposed inter-Korean business projects.

At the three-day summit, ended Thursday, the two Koreas agreed on a range of cross-border business projects, including the creation of a special economic zone at the North's western port city of Haeju, development of an existing port at Haeju, and the expansion of an industrial complex in the North Korean border town of Kaesong.

Russia, Kazakhstan to cooperate on infrastructure

Russia and Kazakhstan plan to develop a common approach on economic infrastructure, Russian Industry and Energy Minister Viktor Khristenko said.

"The forum is expected to result in the signing of three documents which will outline common areas of cooperation for the next four years, 2008 to 2011," Khristenko told reporters in Novosibirsk on Thursday during the Russia-Kazakhstan border cooperation forum.

Previous forums had focused on quite important problems, he said.

"If we recall last year, there was the GRES-2 Power Station in Ekibastuz, Baiterek and KazSat -- the launch of satellites, KAMAZ and GAZ in the car industry, and many more could be listed," Khristenko was cited as saying by local reports.

The oil and gas industry is the traditional sphere of cooperation, he said.

"There are two areas of cooperation here. One is to develop infrastructure, we must develop new approaches toward forming a common economic infrastructure in the next few years," Khristenko said.

Three- and four-party agreements involving Russia and Kazakhstan will be signed soon concerning gas transportation to Central Asia, he said.

"This is a new image of the gas transport system for the next 30 or 50 years," he stated.

Gaz de France acquires stake in Romania

Gaz de France acquired a 59 percent stake in Depomures, the second-largest Romanian natural gas storage operator that runs the facility of Tirgo Mures in northern Romania.

This storage facility, located in a depleted natural gas field, can store up to 300 million cubic meters of natural gas.

Gaz de France acquired the stake from the Azomures (50 percent) and Infochem (9 percent) Groups; the rest of the capital is held by Romgaz (40 percent), the national gas company, and minority shareholders (1 percent).

Already owning a 65 percent stake in Amgaz, the third-largest Romanian storage operator with a capacity of 40 million cu m of natural gas, this new transaction makes Gaz de France the largest private investor in the Romanian storage market. The group's development of new storage capacity will bolster the reliability of gas supplies in Rumania.

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Closing oil prices, Oct. 5, 4 p.m. London

Brent crude oil: $78.95

West Texas Intermediate crude oil: $81.39

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(e-mail: energy@upi.com)