WASHINGTON, April 26 (UPI) -- Algeria's Sonatrach signed exploration agreements with four foreign companies for nine exploration oil blocks Saturday. The agreements are worth a total of $185 million and would allow Algeria to increase its oil reserves by more than a billion barrels while developing its resources. Algerian Energy and Mining Minister Chakib Khelil said the Royal/Dutch Shell Group will be returning to Algeria. Australia's BHP Billiton, British Petroleum and the UAE's Keystone will also participate in the exploration. Shell signed the largest agreement, which exceeded $62 million. Foreign investment is also expected to increase other sectors such as the petrochemical industry through either joint or individual ventures. Khelil said these agreements were the most important Sonatrach has signed within the last five years. Since 2000, Algeria signed 36 similar agreements.
China has secured several solar and wind power facilities throughout the once barren desert areas in western China. Northwest China's Xinjiang Uygur region, which is now rich in wind power, undertook a wind power project that expects to generate a capacity of 188,000 kilowatts for 2005, according a statement made by to Wang Liming, senior engineer of the regional wind power research institute, on Monday. Inner Mongolia, another major wind power producer, currently utilizes its troublesome sandstorms to produce more electricity to facilitate its people and those in the Ningxia Hui Autonomous Region. The region plans to construct a wind power project that has a generating capacity of 300,000 kilowatts, which would triple Inner Mongolia's wind power projects constructed over the last decade. In 2004, China has installed a total of 1,292 wind power generating units with a combined capacity of 764,000 kilowatts, a 34.7 percent increase over the previous year. With some 20-plus solar energy stations in operation in Xinjiang for the last three years, more than 1,000 residents living in the surrounding Taklimakan Desert, the world's second largest of its kind, have received an adequate supply of electricity and water.
The Gazprom-Rosneft merger is expected to take place before the end of June. Russian Industry and Energy Minister Viktor Khristenko confirmed the deadline of the merger on Monday, stating: "The preparations for the merger between Gazprom and Rosneft are in full swing. The deadline - late June - remains unchanged. I believe we shall meet the deadline." Khristenko emphasized the various options of the merger are currently being considered, adding: "The decision that will be adopted will be absolutely clear to the market."
The Azeri government has asked Turkey on Monday to write off the country's $150 million debt for electricity supplied to Naxcivan since 1993, according to Azeri Deputy Prime Minister Abid Sarifov. Azerbaijan lacks the financial means to repay the debt, especially since the country's debt keeps increasing by $11-12 million annually. Sarifov has called upon Turkey to completely write off the debt as technical losses. Sarifov has emphasized on his hope that "the fraternal and friendly state will understand us and accept our proposal."
Following a long interruption in production, Iran's Sorush and Noruz oil fields plan to resume production within the next few days and are expected to begin producing at full capacity within the next month, according to Mehdi Atrianfar, project manager of the oil fields. Commercial production is expected to begin by the end of May. Production from the field should reach 100,000 barrels per day according to agreements. Iran plans to increase the country's total production to 5.5 million bpd and 7 million bpd within the next 5 and 10 years respectively.
The South Korean government will assist the Nepal Electricity Authority (NEA) to construct the Chameliya hydro project. According to Dr. Janak Lal Karmacharya, executive director of Nepal Electrical Authority, the two countries expect to sign an agreement soon. Chameliya hydroelectric project will be constructed near the Chameliya River and will have a capacity of 30 megawatts. The two countries completed the project's design in December 2001. The project will have a 177 foot high concrete gravity dam with two 44.3 high radial gates and semi-underground power house with two units of 15 megawatts vertical shaft Francis turbines. Nepal's Ministry of Water Resources Secretary Mahendra Nath Aryal said that the government was in touch with the South Korean government, adding: "We are ready to go ahead but we need to pool resources first."
Closing oil prices, Apr. 26, 3 p.m. London
Brent crude oil: $52.99
West Texas intermediate crude oil: $53.98
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