Gazprom chief Alexei Miller and Vietnamese Ambassador to Russia Biu Dinh Dinh held talks on Wednesday to discuss prospects for bilateral cooperation in the oil and gas sector, Gazprom's news service said.

"A common opinion was expressed at the meeting about the need to step up interaction between the companies in projects on the development of oil and gas fields on Vietnamese territory as well as joint activities in third countries," the statement says.

Gazprom and PetroVietnam signed a cooperation agreement in November 2006 on the exploration, production, transportation and sale of natural gas, oil and other energy resources, including in third countries.

Vietgazprom, the operating company of Gazprom and PetroVietnam, is exploring block N112 on Vietnam's continental shelf. In addition, the two companies decided to expand exploration to the neighboring block N113.

Gazprom board approves European gas prices for C.I.S., Baltic States

The board of directors at Russia's Gazprom has considered the issue of gas pricing for C.I.S. and Baltic countries, Interfax reported.

"The board approved work being carried out by Gazprom on the gradual increase in natural gas prices delivered to C.I.S. and Baltic countries to the level on the European market reflecting the consumer characteristics of gas," Gazprom's news service said.

The Gazprom executive committee has been instructed to continue work on improving gas pricing for these countries, including with the application of market approaches, the company said.

The average weighted cost of Russian natural gas for C.I.S. and Baltic countries increased 130 percent between 2005 and 2007, while the cost for other foreign consumers grew 40 percent.

Sakhalin-2 to begin first LNG supplies in early 2009

The first deliveries of liquefied natural gas from the Sakhalin-2 project will be made in early 2009, Gazprom Deputy Chief Executive Alexander Medvedev said Wednesday.

Supplies were earlier scheduled to begin in the third quarter of 2008, he said.

Commenting on the prospects of LNG supplies to the United States, Medvedev said such supplies could come from the Yamal Peninsula in addition to Sakhalin-2 and the Shtokman gas field.

As for talks with members of the Sakhalin-1 consortium on the purchase of gas produced as part of this project, he said that Gazprom and the Russian government have made satisfying demand for gas on the domestic market the main priority.

Medvedev did not offer a timeframe for reaching an agreement with the consortium.

"Let's wait for the results of the commercial negotiations," he said.

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Closing oil prices, Apr. 24, 3 p.m. London

Brent crude oil: $115.49

West Texas Intermediate crude oil: $116.90

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(e-mail: energy@upi.com)