UPI Energy Watch

Russia, Iraq discuss oil investment

During cooperative meetings between Iraqi Prime Minister Nouri al-Maliki and Russian Prime Minister Vladimir Putin, Maliki agreed to guarantee protection of Russian investments in Iraq's economy.

"We have everything for you to work," Maliki said during his visit to Moscow. "We guarantee protection of investments in our economy."

Iraq has been working to drum up support for its struggling economy, Itar-Tass reports.

"The results of the visit are very successful. It opens new prospects for development of relations between our countries," Maliki said.

Putin agreed that it is important for Russia and Iraq to build on their existing relationship and to expand to new areas of cooperation.

"It is possible to use these foundations for developing relations in the future," Putin said.

Also present at the negotiating table were Russia's Deputy Prime Minister Igor Sechin, Defense Minister Anatoly Serdyukov, Minister of Education and Science Andrei Fursenko and Energy Minister Sergei Shmatko, along with all of their Iraqi counterparts.

Harvest Natural Resources signs deal in Oman

U.S.-based independent energy company Harvest Natural Resources Inc. has signed an agreement with Oman's government to jointly explore and produce the resources in a new natural gas block in Oman.

Harvest Natural will invest about $30 million over three years, with about $4.8 million going toward geology, seismic reprocessing and drilling preparation, RTTNews reports.

During the exploration phase, Harvest Natural will hold 100 percent interest while receiving investment from Oman's government-owned energy investment firm, Oman Oil Co.

The new block is a newly created concession carved from the existing Block 6 concession operated by Petroleum Development Oman.

The creation of the new block is part of the government's plan to increase natural gas exploration and production to meet growing energy demand.

Total ups the ante for UTS

France-based Total, which made a hostile bid for Canada's UTS Energy Corp. in January, increased its offer Monday to $830 million from $616 million.

Alberta oil sands company UTS Energy has said that the price of $1.75 per share is still too low and will only consider a buyout at $2 per share or higher, The Globe and Mail reports.

Total's initial offer of $1.30 per share was rejected.

UTS holds a major asset with its minority stake in the Fort Hills oil sands project.

"Anyone who would tender to Total at $1.75 is simply selling into the market today at $1.84. And anyone buying today at $1.84 isn't going to tender at $1.75," said one portfolio manager who holds UTS and expects a higher offer from the French company.

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Closing oil prices, April 13, 3 p.m., London

Brent Crude oil: $54.06

West Texas Intermediate crude oil: $52.09

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(e-mail: energy@upi.com)