Gazprom to release plan for Kovykta development by year’s end
Russia's gas giant Gazprom hopes to release a plan for the development of the Kovykta gas condensate field in Eastern Siberia before the end of the year, according to an agreement reached by acting Minister of Natural Resources Yuri Trutnev and Gazprom CEO Alexei Miller on Monday.
Trutnev and Miller "agreed to actualise the license agreement on the Kovykta gas condensate field in light of the governmental programme for creating a single gas production, transportation and supply in the Far East with possible exports to China and other Asia-Pacific countries," Gazprom said in a statement.
The two sides also "discussed a number of issues associated with Gazprom's work under the Sakhalin-2 project and the remedying of environmental legislation violations in Sakhalin exposed by the Federal Service for Supervision of Natural Resources in 2006.”
Gazprom plans to construct a gas processing plant in the Kovykta field, Itar-Tass reported.
The field is to be commissioned in 2017, but Gazprom believes that this may happen sooner if gas from the field is supplied to the unified gas system.
"The development of Kovykta depends on the needs of the domestic market. In conditions of uncertainly we have to consider different options. If gas goes to the unified gas system, this date may be brought closer," Oleg Ivanov, deputy head of a section at Gazprom's Department of Strategic Development, said.
Russia, OPEC in oil talks
Russia and the Organization of Petroleum Exporting Countries continue to exchange information on "their energy strategies," Andrei Reus, the deputy minister of the Russian Industry and Energy Ministry, said.
"The ongoing exchange of information between the key players on the global energy market on their energy strategies can help stabilize those markets. Russia is open to consultations of this kind," Reus was quoted as saying at an OPEC conference.
"In 2006, oil production in Russia reached 480.02 million tons, some 2.1 percent more than in 2005, and this made us the largest oil producer in the world," Reus said.
He said Russia has plans to diversify its oil exports routes, adding that Russia would assume a transparent position in energy talks.
"This is the only way to achieve a stable energy market, guarantee the reliability of energy transportation, curb price fluctuations, and ultimately stabilize the development of national economies and the world economy," he said.
He also said it was a priority for the Russian government to create a favorable environment for foreign investment.
Algeria, Spain end gas spat
Algeria has ended its conflict with Spain over gas delivers, Chakib Khelil, minister of energy and mining, said.
He said Sonatrach secured an agreement with the Spanish Energy Corps, which sought to limit the quantity of gas to be marketed in Spain to 1 billion cubic meters instead of 3 bcm, while Sonatrach says it has the right to distribute that gas in Spain, Qatari Al-Jazeera satellite TV reported.
The two sides agreed that Algeria will start supplying Spain with additional quantities of gas through the Medgaz pipeline that will link the two countries via sea by 2009.
Neither side, however, released statements about the resolution.
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Closing oil prices, Sept. 18, 3 p.m. London
Brent crude oil: $76.82
West Texas Intermediate crude oil: $80.70
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