UPI Energy Watch

Turkmenistan courts Emirates on energy talks

Turkmen President Gurbanguly Berdymukhamedov invited leaders of the United Arab Emirates this week to invest in his country's economy, Itar-Tass reported.

"Our partnership has a great future, including in the investment sphere, mainly in the oil and gas, chemical and processing industries," Berdymukhamedov said Wednesday during the first round of talks with Emirates President Khalifa bin Zayid al-Nuhayyan, who was on his first official visit as the head of state.

The Turkmen president invited Emirates businessmen to join in the implementation of such fully fledged projects as the creation of the National tourist area Avaza on the Caspian Sea coast, the transnational transport route North-South, and other large-scale programs within the framework of the country's reform plans.

The leaders confirmed their interest in enhancing trade and economic contacts, and stepping up partnership in the oil and gas sector, agriculture, construction, transport and communications.

Yemen to boost output by 2010

Yemen plans to increase its oil production up to 500,000 barrels daily by 2010, Oil and Minerals Minister Khaled Bahah said Wednesday.

In a statement to the official Saba news agency, Bahah said the ministry was working to improve the production blocks and enter new exploration blocks to raise the production in addition to attract further international oil companies to invest in the country.

Austria's OMV said Wednesday it plans to drill 40 new oil wells by 2010 in S2 block in Armah district of Shabwa governorate.

"The current oil production decreased from 438,000 barrels per day in 2002 to 317 barrels per day in 2007," added the minister, making it clear 2008 will be for minerals through extending petrochemical and transforming industries.

Bahah said the ministry is to launch refineries in Yemen, saying it was also eyeing increasing the rate of Yemeni workers in oil companies to 90 percent.

"Last year, the rate of Yemenization was more than 85 percent," he said.

He concluded his statement by saying that the ministry is working to produce oil free from lead totally.

Gaz De France has not started talks with Gazprom on South Stream

France's Gaz de France has not started negotiations with Russia's Gazprom for its participation in the Russian-Italian project to build the South Stream gas pipeline.

"We have not started negotiations with Gazprom on this matter," Gaz de France Chief Operating Officer Jean-Marie Dauger said Wednesday, adding that the Russian company had given its preliminary consent.

On Feb. 7 Gaz de France said it would not take part in the Nabucco pipeline project, which should bypass Russia. The company also decided to consider the possibility of participating in other projects, including South Stream.

According to Dauger, there was "more politics than business" in the Nabucco project.

Informed sources said Turkey vetoed France's participation in the Nabucco project in return for the French Parliament's recognition of Armenian genocide.

The first supplies by the ramified South Stream system, designed for the transit and transportation of natural gas to the Balkans and other European countries from Russia through the Black Sea, Bulgaria and Serbia, are expected to begin in 2013.

It will supply up to 30 billion cubic meters of not only Russian but also Central Asian gas to Europe annually.

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Closing oil prices, Feb. 28, 3 p.m. London

Brent crude oil: $97.95

West Texas Intermediate crude oil: $99.20

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(e-mail: energy@upi.com)