Indonesia, Iran delay building oil refinery
Construction of an Indonesian Iranian oil refinery is likely to be delayed with both sides still revising an agreement first signed in 2004, Asia Pulse reported.
PT Pertamina said it has signed with National Iranian Oil Refining and Distribution Co. revision of their memorandum of understanding on the project to be built in Bojonegoro, Bantan.
Pertamina President Ari Hernanto Soemarno said the project was estimated to cost $2.5 billion when the agreement was first signed, but now the cost has swelled to an estimated $7 billion.
Pertamina Director Suroso Atmomartoyo said the agreement has been revised four times and the latest revision concerned the extension of feasibility study, capacity, supply of feedstock and technical details.
The feasibility study could change technical specifications of the refinery, which is to have a processing capacity of 300,000 barrels of crude oil a day.
Earlier Suroso said construction of the project is to start next year and to be completed in 2012.
Azerbaijan to renew gas supplies to Georgia
The State Oil Co. of the Azerbaijani Republic, or SOCAR, has resumed natural gas shipments from its own fields to Georgia on Dec. 1, Azerigaz Chairman Alikhan Melikov told reporters Friday.
"SOCAR gas shipments to Georgia were suspended in November but resumed December 1 at 1.3 million cubic meters a day for the remainder of the year," he said.
SOCAR suspended gas shipments to Georgia because it was receiving less associated gas from Azerbaijan International Operating Co. from the Azeri-Chirag-Gunashli block.
SOCAR began supplying Georgia 1.3 million cubic meters of gas a day this year for $120 per 1,000 cubic meters. The contract was signed for the first quarter, so shipments were suspended in April and resumed only in late May. The contract was extended until September at Georgia's request. Shipments stopped Sept. 5 and resumed Oct. 1.
Georgia also receives 1 million cubic meters of gas a day from Azerbaijan under the Shah Deniz field.
Gazprom, Gaz de France mull cooperation
Gazprom CEO Alexei Miller and Gaz de France Director General Jean-Francois Cirelli held talks to discuss prospects for cooperation on the markets of third countries, Gazprom said in a statement on Monday.
The two sides discussed bilateral cooperation and the implementation of agreements reached earlier.
Cirelli mentioned the subject of steps towards a merger with France's private utility Suez.
In December 2006 Gazprom and Gaz de France secured an agreement to prolong the effective contract on Russian gas exports to France till 2030.
Under the contract, Gaz de France will get additional gas pumped through the North European Gas Pipeline (Nord Stream) as of late 2010. Annual supplies will total 2.5 billion cubic meters of gas.
As of October 2007, Gazprom carries out direct gas supplies to France's final consumers in the amount of 1.5 billion cubic meters of gas a year, the Prime-Tass business news agency reported.
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Closing oil prices, Dec. 4, 3 p.m. London
Brent crude oil: $89.56
West Texas Intermediate crude oil: $88.27
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