UPI Energy Watch

By ANDREA R. MIHAILESCU, UPI Energy Correspondent  |  Jan. 24, 2008 at 3:52 PM
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Russia produced more oil, less gas in 2007

Russia produced more oil and electricity but less natural gas in 2007, according to official figures obtained by Russian news agency Interfax.

Oil production rose by more than 2 percent in 2007, but natural gas production was down slightly, Interfax reported quoting the Federal Statistics Service, Rosstat.

Russia produced 491 million tons of crude oil (including gas condensate), up 2.1 percent year-on-year.

Gas production was down 651 billion cubic meters, a drop of 0.8 percent.

The report also said petrol production was 229 million tons, up 2.1 percent; diesel fuel production, 66.4 million tons, up 3.4 percent; fuel oil, 62.4 million tons, up 5.2 percent; and lubricants, 2.7 million tons, down 12 percent.

Another Interfax report quoted Rosstat as saying Russian coal production in 2007 was 31.5 million tons, up 1.4 percent. The Siberian Coal Energy Co. accounted for 31 percent of all coal supplies inside Russia, the report said.

A third Interfax report quoted Rosstat as saying electricity production in Russia rose by 2 percent in 2007 to 1,016 billion kWh.

Of this total, nuclear power stations produced 160 billion, up 2.3 percent; thermal power stations, 677 billion, up 2 percent; and hydroelectric power stations, 179 billion, up 2 percent.

Russia, Serbia to ink energy agreement

Russian and Serbian officials plan to sign an intergovernmental agreement Friday to cooperate on oil and gas projects.

The signing will take place during a visit to Russia by Serbian President Boris Tadic and Prime Minister Vojislav Kostunica.

It is expected that the document will be inked by Russian Minister for Fuel and Energy Viktor Khristenko and Serbian Minister for Infrastructure Velimir Ilic.

Russian President Vladimir Putin will receive Tadic and Kostunica on Friday.

The Russian-Serbian agreement will be signed together with supplements determining concrete details of cooperation, a source close to negotiations confirmed to reporters in Moscow on Wednesday.

He stressed it is not an agreement to sell something, but a package of intergovernmental agreements on cooperation in that sphere.

On Tuesday, the Serbian government approved the Russian-offered project of a framework agreement on cooperation in the energy sphere.

Under a package deal, a segment of the South Stream gas pipeline from Bulgaria through Serbia to the Bosnian Serb Republic, Croatia and Italy will be laid; construction of the Banatski Dvor underground gas storage with the capacity of about 800 million cubic meters will be completed; and Gazprom's purchase of a 51-percent stake in the Serbian oil company Naftna Industrija Srbije will be completed.

Libya agrees to oil exploration with Germany's RWE

The Libyan National Oil Co. secured an oil exploration agreement on Tuesday with German RWE Group, Libyan news agency Jana reported.

Jana said Shukri Ghanim, the secretary of the Libyan state oil company, and Eckart Hoffmann, senior vice president of RWE Dea North Africa and Middle East, signed the agreement.

The agreement states a "participation in exploring and sharing oil and gas" in Area 85 in Cyrenaica, in eastern Libya.

Under the $76 million agreement, RWE Dea will carry out a survey for oil and drill two wells in the area.

The Libyan Cabinet has to approve the agreement.

Jana reported that the North African subsidiary of German RWE Group has been exploring oil and gas in Libya since 2003 in Sirte, Cyrenaica and Al-Kufrah.


Closing oil prices, Jan. 23, 3 p.m. London

Brent crude oil: $89.96

West Texas Intermediate crude oil: $88.37


(e-mail: energy@upi.com)

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