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                                              June 2008

EU repeats call for Armenia to close power station
The EU repeated an offer last week to provide financial support to the Armenian government in shutting
down the Metsamor nuclear reactor.
Hugues Mingarelli, the deputy head of the European Commission‘s Directorate-General for External
Relations, said the EU would provide EUR 100 million to help close the plant down when he visited
Yerevan last week.
Metsamor provides around 40 percent of Armenia‘s electricity. In recent years Yerevan has been under
pressure from the EU to close the power station down as soon as possible, due to safety concerns over
its lack of a containment system to deal with potential radioactive leaks. Last month officials from the
Russian company INTER RAO UES, which manages the plant, said they would continue managing it
after their initial contract expires later this year. They also said INTER RAO plans to build a replacement
                                                                      10.06.2008 – WWW.MESSENGER.COM

Energy: Caspian pipeline projects resemble Gordian knot
Since the mid-1990s, leaders of the Caspian Sea littoral states -- Azerbaijan, Russia, Kazakhstan,
Turkmenistan, and Iran -- have repeatedly said that the sea should never become a point of contention
between them or a reason for conflict in the international community. But as energy prices skyrocket, the
Caspian Sea Basin -- home to some of the world's largest hydrocarbon resources -- is becoming a new
focal point for fierce competition.
Russian gas giant Gazprom is among the major parties competing for resources in the Caspian Sea
region, which the Russian company dominated in the 1990s. But rivals to Gazprom have appeared
recently, prompting Gazprom CEO Aleksei Miller on June 2 to visit Azerbaijan -- a country that does not
sell any natural gas to Gazprom -- and offer Baku "European prices" for its natural gas.
Miller added that Gazprom is willing to purchase all of Azerbaijan's gas, which would then be exported via
Gazprom pipelines to Europe -- a situation that Brussels wants to avoid at any cost. That makes the
European Union the main competitor to Gazprom in Azerbaijan.
Brussels has recently dramatically stepped up its activities in the Caspian region. EU Ambassador to
Azerbaijan Alan Waddams tells RFE/RL's Azerbaijani Service that the Gazprom offer will be difficult for
Baku to refuse.
Azerbaijan has not yet agreed to the Gazprom proposal, and Azerbaijani officials are aware that Gazprom
made a similar deal with Kazakhstan, Turkmenistan, and Uzbekistan earlier this year, offering to pay
"European prices" starting in 2009. Some media outlets estimated that European prices would amount to
more than $300 per 1,000 cubic meters in 2009, but several weeks after signing the contract, Gazprom
told Uzbekistan the price would be some $210 in 2009.
                                                                 05.06.2008 – WWW. RFE/RL NEWSLINE

Gazprom ready to buy Azerbaijani gas at market prices - envoy
Russian energy giant Gazprom is prepared to buy Azerbaijani natural gas at European market prices
minus transport expenses, Russia's ambassador to the South Caucasus country said on Wednesday.
A Gazprom delegation visited Azerbaijan on Monday and the company's CEO, Alexei Miller, who met with
Azerbaijani President Ilham Aliyev, made a proposal to buy Azerbaijani gas at market prices on the basis
of long-term contracts.                                Page 1 of 15
Vasily Istratov said Gazprom's proposal to Azerbaijan was a commercial offer which also included a
political aspect as the issue was being discussed at the political level.
According to some expert estimates, the average price of wholesale natural gas supplies to European
consumers may rise considerably by late 2008 under long-term contacts to reach $360 per 1,000 cu m, or
$354 per 1,000 cu m according to Gazprom's figures.
Azerbaijan is considered as a potential natural gas supplier for the Western-backed Nabucco project
designed to pump 20-30 billion cubic meters of natural gas annually from Central Asia, under the Caspian
Sea, then through Azerbaijan, Turkey, Bulgaria, Romania, Hungary and Austria, bypassing Russia.
The Trans-Adriatic project is intended to build a pipeline to pump natural gas from the Caspian Sea to
Italy through Greece and Albania under the Adriatic Sea. The Swiss firm EGL-AXPO, the project's
operator, plans to involve Azerbaijan as a natural gas supplier for the pipeline.
Azerbaijan's natural gas reserves are estimated at 1.5 trillion cubic meters.
Azerbaijan is developing its giant Shah Deniz field, with gas reserves of over 1 trillion cubic meters, under
a production-sharing agreement signed in 1996. Seven companies, including BP, Norway's Statoil,
France's Total and the State Oil Company of Azerbaijan are involved in the project.
The Shah Deniz field is expected to yield 8 billion cubic meters of natural gas this year.
                                                                          04.06.2008 – WWW. RIA NOVOSTI

Aliyev: Azerbaijan to produce 20 percent more oil in 2008
Azerbaijan expects to produce 20 percent more oil in 2008 compared with last year, Azerbaijani President
Ilham Aliyev said at the Caspian Oil and Gas Conference in Baku this week.
In the first four months of 2008 oil production increased around 14 percent compared with the same
period in 2007, according to news agency RIA Novosti. Aliyev said the country will produce 50 million
metric tons of oil this year, and 60 million the next year. The president underlined that Azerbaijan is part
of the Extractive Industries Transparency Initiative (EITI), which aims to encourage better governance in
resource-rich countries by publishing company payments and government revenues.
On June 2, representatives from Russia‘s gas monopoly Gazprom met Azerbaijani officials to propose a
long-term agreement that would see Russia buy Azerbaijani gas at market rates.
However, analysts say that Gazprom‘s move is an attempt to increase Russia‘s grip on the European
energy market by limiting its supply of Azerbaijani natural gas. Baku is involved in projects like the
Nabucco pipeline which aim to take Central Asian gas to Europe, circumventing Russia.
                                                                  05.06.2008 – WWW.MESSENGER.COM

Israel looks at Azerbaijani gas and oil
Israel could spend up to USD 40 billion on Azerbaijani gas imports in coming years, Israeli Infrastructure
Minister Benjamin Ben-Eliezer said in an interview with the news agency Trend in Baku this week.
The Israeli official said Israel uses over two billion cubic meters of gas per year, but that this is likely to
increase dramatically in the years to come. He also confirmed that initial talks are underway with
Azerbaijani officials that could lead to a long-term gas import agreement. He also discussed a proposed
project to bring Azerbaijani oil to the Eilat–Ashkelon pipeline, which runs through Israel between the
Mediterranean and Red Seas.
                                                                   09.06.2008 – WWW.MESSENGER.COM

Azerbaijani state oil company eyes USD 10 billion in investments
Azerbaijani state oil company SOCAR plans a USD 10 billion investment program over the next seven or
eight years, according to the company‘s first vice president Khoshbakht Yusifzadeh.
In May SOCAR opened a new oil terminal in Kulevi, Georgia, which was purchased in the initial stages of
construction from late business tycoon Badri Patarkatsishvili in 2006. Last month SOCAR president
Rovnag Abdullayev announced that the company planned to purchase a 50 percent share of Turkish
construction company Tekfen.
                                                                 11.06.2008 – WWW.MESSENGER.COM

Azerbaijani minister: Key objective to export gas to Europe
Yesterday Azerbaijani Energy Minister Natik Aliyev said Baku intends to ―primarily pump gas to Europe‖
according to Azerbaijani news agency Today.Az. The announcement comes after an official from
Russia‘s Gazprom visited Baku earlier this month to pitch a long-term offer to buy Azerbaijani gas at
―market prices.‖ This was seen by some commentators as an attempt by Moscow to stymie Europe‘s                                    Page 2 of 15
trans-Caspian pipeline plans, including the Nabucco project, which aims to take Central Asian gas to
Speaking the same day on a separate issue, the energy minister said that negotiations have been held on
linking the power grids of Azerbaijan, Georgia, Iran, Turkey and Russia.
                                                                 18.06.2008 – WWW.MESSENGER.COM

Kazakhstan reaffirms energy cooperation with Azerbaijan
Kazakhstan is committed to cooperating with Azerbaijan on energy issues, Kazakh Senate Chairman
Kassym-Jomart Tokayev said in Baku last week.
Earlier this year, Kazakhstani authorities said they are planning to increase the capacity of Kurik port from
which oil mined at Kazakhstan‘s Kashagan and Tengiz fields will be delivered by tankers to Baku.
In May, Kazakh President Nursultan Nazarbayev signed into law a bill ratifying a treaty on transporting
Kazakh oil through the BTC. The BTC pipeline, which went online in 2005, transports Central Asian oil to
                                                                   23.06.2008 – WWW.MESSENGER.COM

Azerbaijani says no long-term gas contract for Georgia
Azerbaijani Energy Minister Natik Aliev has said that Azerbaijan will opt for short-term natural gas
agreements with Georgia instead of a long-term contract.
Georgia hopes to increase its natural gas import from Azerbaijan, in order to decrease its reliance on
Russia as an energy supplier.
In 2007 Georgia paid USD 120 per 1000 cubic meters of Azerbaijani gas, much less than the Russian
price of USD 235 per 1000 cubic meters.
However late last year Baku announced it would increase the price Georgia pays for Azerbaijani gas.
Talks over Georgia‘s gas import amount and how much it pays have been underway this year.

                                                                  23.06.2008 – WWW.MESSENGER.COM

Rompetrol Georgia introduces upgraded service station.
Rompetrol Georgia inaugurated a newly-upgraded and rebranded service station yesterday, which
company director general Dan Voiku says will increase customer satisfaction.
Rompetrol Georgia now operates 30 gas stations throughout the country, with plans to add 15 more by
the end of next year.
The new stations are equipped with precise, electronically-controlled pumps and undergo regular quality
control checks.
Much attention is paid to the image of the station, and to the quality checks both for service and the fuel,
which is imported from the Romanian oil refinery in Constanza.
Quality control expert Giorgi Gvetadze says one sample of fuel can be checked in five minutes by a
special mobile laboratory.
                                                                 27.06.2008 – WWW.MESSENGER.COM

Kazakh oil to flow into Turkey after historic deal
A new energy agreement signed between Azerbaijan and Kazakhstan linking a planned oil pipeline to
Azerbaijan‘s Baku was ratified by Kazakh President Nursultan Nazarbayev yesterday, marking an
opportunity for Turkey to market Caspian Sea oil to the rest of the world.
Under the agreement, Kazakhstan will transport oil through the new Eksene-Kuruk pipeline, to be
constructed, and also via tankers, to Baku, the starting point of the Baku-Tbilisi-Ceyhan (BTC) pipeline,
which passes through Georgia and terminates in Turkey. Kazakhstan‘s KazMunai Gaz and Azerbaijan‘s
state-owned oil company have been negotiating since 2002 for ways to make possible the integration of
Kazakh oil to the BTC.
The agreement was finalized on May 26, when the Kazakh parliament ratified the deal. The agreement
entered into force with Nazarbayev's final approval yesterday.                                  Page 3 of 15
Under the new deal, a new 730-kilometer pipeline running from Kazakhstan's Eskene region to Kuruk will
be constructed. Oil will be transported from the Kuruk port to Baku via tanker. Once pumped into the BTC
there, Kazakh oil will then go to Ceyhan in Turkey, increasing the amount of oil arriving in Ceyhan to 75
million tons a year -- up 50 percent from the current 50 million.
                                                                 01.06.2008 – WWW.TODAYSZAMAN.COM

Kazakh Energy Company Not to Suffer From Ban on Oil Exports – Official
Astana, 2 June: Imposing a ban on the export of oil products will not affect the profitability of the
KazMunayGaz national oil and gas company, the chairman of the board of the [Kazakh] Samruk Holding
[joint-stock company], Kanat Bozumbayev, said today during a meeting with members of the parliament's
Senate, a [Kazakhstan Today news] agency correspondent has reported.
                                                               02.06.2008 – WWW.REDORBIT.COM

Kazakh Premier Instructs to Nationalize Oil Company
Excerpt from report by Russian internet news agency Regnum, specializing in regional reporting
At a government conference call held on 2 June, Kazakh Prime Minister Karim Masimov set the heads of
the Ministry of Energy and Mineral Resources, the [Kazakh] Samruk Holding joint-stock company and the
KazMunayGaz state oil company a task to buy the Mangystaumunaygaz oil and gas open joint-stock
company's controlling package of shares for state ownership in the shortest period of time, the Kazinform
news agency reports.
                                                                  02.06.2008 – WWW.REDORBIT.COM

Kazakh nuclear company seeks $3 bln Japan insurance
Kazakh uranium company Kazatomprom is seeking a $3 billion credit insurance facility from a Japanese
company to fund development, Kazatomprom CEO Mukhtar Dzhakishev said on Tuesday.
Speaking at the opening ceremony of a Japan-Kazakh uranium project, he said his company would
borrow within the insured sum to develop refining projects in Kazakhstan and Russia.
The deposit contains 26,000 tonnes of uranium in resources, and is due to produce up to 1,000 tonnes of
uranium a year.
He said Kazatomprom, which expects the deal to be finalised by the end of this year, would then be able
to borrow from banks at the London Interbank Offering Rate (LIBOR).
                                                                    03.06.2008 – WWW.REUTERS.COM

INTERVIEW-Petrolinvest in financing talks with foreign funds
Polish upstream company Petrolinvest PROL.WA is in talks with foreign investment funds about financing
its growth as it moves forward with developing Kazakh oil fields, its chief executive told Reuters.
Petrolinvest, which is controlled by Polish businessman Ryszard Krauze, has been exploring for oil and
gas in Kazakhstan for a year but has yet to produce crude commercially.
It is moving forward with plans to buy a Kazakh company, Capital Energy, and boost holdings in two
others, EmbaYugNeft and Occidental Resources Inc. to increase its access to their potentially lucrative oil
fields. The acquisitions will give Petrolinvest access to territories scattered throughout Kazakhstan.
Petrolinvest Chief Executive Pawel Gricuk said the deal, which will give Kazakh investors 40 percent of
the company, would close within a month or two versus earlier expectations for the turn of May and June.
He said the size of additional financing would depend on the result of further drilling.
                                                                         04.06.2008 – WWW.REUTERS.COM

Kashagan, Kazakhstan's Caspian
Kazakhstan's offshore Kashagan Caspian Sea field, discovered in 2000, is the largest oil field uncovered
in the last 30 years, with potential reserves estimated to be as high as 70 billion barrels. For a
comparison, the Norwegian sector of the joint British-Norwegian North Sea oil fields contains
approximately 30 billion barrels of recoverable crude. While North Sea oil was discovered in the early
1960s, its first well only began producing in 1971; costs and technological hurdles delayed full
development of the fields until the 1980s, when rising oil prices made their development profitable.
Kashagan is the sole "superfield" to be discovered in the last three decades. The total Kashagan Contract
area covers more than 2,125 square miles of northern Caspian Sea waters and contains five separate
fields -- Kashgan, Kalamkas A, Kashagan Southwest, Aktote and Kairan.                                Page 4 of 15
Under terms of the North Caspian Sea Production Sharing Agreement signed in 2001, Italy's Eni under
the joint-venture company name of AgipKCO (Agip Kazakhstan North Caspian Operating Co.) currently
manages Kashagan. AgipKCO consists of Kazakhstan's national hydrocarbon concern KazMunaiGas and
Japan's Inpex, both of which originally held an 8.33 percent share in the project, while ConocoPhillips
holds a 9.26 percent share. Four major foreign oil companies currently dominate the project -- Eni,
France's Total, U.S. ExxonMobil and Anglo-Dutch Shell, which all held 18.52 percent stakes each.
Last autumn, however, the Kazakh government, citing environmental concerns and cost overruns,
renegotiated the PSA agreement. When the dust settled in January, KazMunaiGas increased its share in
the Kashagan project from 8.33 percent to 16.81 percent as a result of its foreign consortium partners
surrendering 2 percent apiece of their stake while agreeing to pay up to $5 billion as compensation for
lost profits due to cost overruns and significant delays in commercial production.
Initial production from Kashagan is estimated to begin in 2011, with a projected daily output of more than
500,000 barrels per day, the same year when many analysts believe that land-based Kazakh production
will peak, while Caspian offshore developments, most notably Kashagan, then begin to surge to first
supplement and then increasingly replace onshore production. What is indisputable is that Kazakhstan
will play an ever-increasing role in global oil production, a fact that is reflected in production figures.
While Kazakhstan currently exports approximately 1.2 million barrels per day, projections estimate that by
2021 Kazakhstan could be pumping nearly 4 million barrels a day, a rate that would put it only slightly
behind Organization of Petroleum Exporting Countries member Iran and its daily production of 4.5 million
                                                                                  05.06.2008 – WWW.UPI.COM

Kazakh President launched capacity expansion projects in Tengiz deposit
President of Kazakhstan Nursultan Nazarbayev has taken part in a ceremony of commissioning of
capacity expansion projects in Tengiz deposit.
The first project deals with sour gas injection and the second one is a second generation plant.
Capacity extension will allow increasing oil production in Tengiz deposit by 540 thousand barrels a day.
As is known, ―Tengizchevroil‖ Company is formed on the basis of the agreement between Kazakhstan
and ―Chevron‖ on exploitation of the deposit.
                                                                        05.06.2008 – WWW.INFORM.KZ

Chevron to build new pipe on Kazakh Caspian shore
U.S. oil company Chevron with Kazakhstan on Friday to press ahead with a new domestic oil pipeline,
due to be part of a broader $3 billion project to link Caspian oil deposits with international markets.
Kazakhstan pumps most of its oil through Russia but it has irritated Moscow in past years by announcing
plans to build more pipelines and diversifying exports towards western Europe.
Chevron said the new pipeline, due to be built along Kazakhstan's western coast on the Caspian Sea,
was discussed this week at a meeting between senior executives of Chevron and Kazakh state oil
company KazMunaiGas [KMG.UL].
Kazakhstan's Yeskene-Kuryk portion of the pipeline, together with a planned trans-Caspian undersea
route, are estimated at a total of $3 billion, according to previous government estimates.
Chevron did not say when the pipeline would be built. KazMunaiGas sees its maximum capacity at up to
56 million tonnes a year. Kazakhstan sees this year's oil production at 67.6 million tonnes (1.35 million
barrels per day).
                                                                        06.06.2008 – WWW.REUTERS.COM

Exxon urges Kazakhstan not to revise tax rules
ExxonMobil urged Kazakhstan on Friday against revising taxes for oil companies, saying the proposed
measure would hinder fresh investment in the oil-rich Central Asian state.
Kazakhstan has introduced an oil export duty and announced plans to impose new taxes on the booming
sector dominated by Western oil majors, as part of proposed legislation changes due later this year.
Mark Albers, Exxon's Senior Vice President, told a foreign investors forum in the Kazakh oil city of Atyrau
that the proposed changes would hurt Kazakhstan's business climate.
"Restructuring fiscal agreements or revising fiscal legislation with an assumption of sustainable high oil
prices might seem to generate additional revenue for the government, but in fact hinders new investment,
undermining investor confidence and increasing risks," he said.                                Page 5 of 15
Causing further concern, the Kazakh government has also threatened to review a contract with a Western
oil consortium -- which includes Exxon -- developing the giant Kashagan oil field due to disagreement
over costs and production schedule.
An analyst say Kazakhstan, emboldened by its booming economy and high global oil prices, is unhappy
with the terms of some oil contracts signed in the 1990s and is trying to get a greater share of revenues.
As part of the proposed changed, the government plans to introduce a subsoil extraction tax and make all
existing contracts, including Production Sharing Agreements (PSAs) subject to parliamentary approval.
                                                                      06.06.2008 – WWW.REUTERS.COM

RLPC-KazMunaiGas to launch $2.5 bln loan Monday – source
Kazakhstan oil and gas company KazMunaiGas [KMG.UL] will launch syndication on Monday of a $2.5
billion, three-year unsecured loan, a banking source said on Friday.
Mandated lead arrangers are ABN AMRO, Bank of Tokyo-Mitsubishi-UFJ, Barclays, Credit Suisse,
Deutsche Bank, SMBC, Societe Generale and WestLB.
Proceeds will refinance the company's $3.1 billion, one-year unsecured bridge loan that signed in
January. That unsecured loan paid a margin of 90 basis points (bps) over LIBOR and was used to fund
the borrower's purchase of Romania's second-largest oil company Rompetrol.
                                                                     06.06.2008 – WWW.REUTERS.COM

Chevron seeks participation in Kazakh pipeline project
Construction of the pipeline between Yeskene and Kuryk, part of the Kazakh Caspian System, is
scheduled to begin in the near future. Observers have said they believe the project will be built and
operated by Kazmunaigaz and the Azerbaijani State Oil Company (GNKAR). The American oil producer,
Chevron, is reportedly interested in the project, also. Analysts point out that Kazakhstan is seeking to
increase oil production through the development of new fields and, therefore, needs more oil export
routes than are currently available. The pipeline between Yeskene and Kuryk is to be part of the Kazakh
Caspian System developed by Astana, according to a memorandum signed in early 2007. The Kazakh
Caspian System is to include the Yeskene-Kuryk pipeline and the Trans-Caspian framework, made up of
terminals on the Kazakh coast of the Caspian Sea, oil tankers, terminals on the Azerbaijani coast and a
connection to the Baku-Tbilisi-Ceyhan pipeline.
                                                            09.06.2008 – WWW.TURKISHWEEKLY.NET

International conference on Kazakhstan’s nuclear power opened in Kurchatov
KURCHATOV. June 11. KAIZNFORM /Ludmila Malko/ A three day international conference on Nuclear
energy of Kazakhstan has started its work today in Kurchatov, East Kazakhstan oblast, Kazinform
correspondent reports.
The event is organized by Energy and Mineral Resources Ministry, Atomic Energy Committee, ―National
Nuclear Center‖ Republican enterprise, ―Kazatomprom‖ JSC National Atomic Company and Kazakhstan
Nuclear Society.
Status and prospects of the development of Kazakhstan‘s nuclear energy and industry are to be
discussed in the course of the forum. Issues of elaboration and realization of perspective projects of
Nuclear Power Plant, security of nuclear engineering objects and personnel training for nuclear-energy
sphere of Kazakhstan will be considered as well.
Special attention will be given to international cooperation in the sphere of peaceful use of nuclear power.
Foreign experts from Russia and Japan representing leading organizations in this sphere are expected to
participate in the conference.
                                                                           11.06.2008 – WWW.INFORM.KZ

Kyrgyzstan export electricity to Pakistan
Electricity export from Kyrgyzstan to Pakistan is likely to trigger huge interest of investors in building new
hydro power plants in the Tien Shan, the World Bank Expert Mirlan Aldayarov said at the meeting with
experts on June 6.
The project is of high importance for both Kyrgyzstan and Pakistan. The project enables Kyrgyzstan to
export electricity at higher rates to a new market and supply southern Osh and Batken regions with
electricity. Thereby Kyrgyzstan will get rid of dependence on the Uzbek electricity system.                                   Page 6 of 15
Net profit yielded from energy sale to Pakistan will make up 2 cents per Kw/h at the lowest 5 cents per
Kw/h price.
Besides, Tajikistan has shown interest in having a hand in the project as the country lacks energy
resources. Strangely enough, Kyrgyzstan looks indifferent to the initiative.
With Kyrgyzstan enjoying odd electricity reserves in summer time the electricity is expected to be
supplied in summer. In winter the channel will be used to export electricity to the south of Kyrgyzstan.
According to the preliminary data, the project will be funded by three international financial institutions: the
World Bank, Asian Development Bank and Islamic Development Bank.
                                                                                  09.06.2008 – WWW.24.KG

Moldova To Build New-Type Border Stations
Chisinau. At its ordinary meeting held on Wednesday, the Moldovan Government approved the Plan of
border infrastructure development for 2009-2011, according to which the Republic of Moldova will be
building totally new-type border posts, Director General of the Moldova Border Service Igor Kolenov told
journalists after the Cabinet meeting. He said regular service at the stations will be organized according
to European standards – on the basis of contracts to be concluded personally with each officer. For
contractniks coming to their service places 30-40 kilometers off their homes and staying on duty for 24
hours and more, special rest rooms will be arranged. Military service at such stations will be organized on
the shift/duty basis, Kolenov said.
The first station of such type was commissioned in northern Moldova in 2007. By the end of 2008,
another three such facilities will be built: two by using the Border Service‘s own means (which appears to
be substantially cheaper) and one station will be built by a private company. Subsequently, tenders will be
announced for the right to construct 6 more new-type border stations that will be provided with all service
and living conditions.
Igor Kolenov said the Plan envisages also the capital reconstruction and re-equipment of move than 60
old stations. On the whole, the State Budget will provide 25.5 million lei for border infrastructure
development next 3 years. From this sum, 3 million will be taken annually for the building or buying of
homes for Border Service officers.
                                                                          03.06.2008 – WWW.INFOTAG.MD

Russia raises oil export duty to record $398.1 per ton from June
Russia's oil export duty will rise to a record $398.1 per metric ton from June 1, 2008, in line with global
market trends.
He said export duties on light oil products would rise to $280.5 per metric ton from June 1, 2008, from the
current $241.4 per metric ton, and duty on heavy petroleum products would grow to $151.1 per metric ton
from $130.1.
The Russian government adjusts export duty on crude and petroleum products every two months,
depending on changes in the Urals blend price on world markets.
The average price of Russia's benchmark Urals crude blend was $93.36 per barrel in the first quarter of
2008, up $39.12, year-on-year. The Urals average price in March 2008 was $99.78 per barrel, compared
to $58.86 per barrel in the same month last year.
On March 24, Russia's economics ministry raised its 2008 forecast for the annual average price of Urals
by 16% to $86 per barrel.
                                                                       01.06.2008 – WWW. RIA NOVOSTI

LUKoil's Caspian offshore field reserves estimated at 2.2bln bbls
Russia's largest independent crude producer LUKoil said on Tuesday its Caspian oil and gas condensate
field reserves had been estimated at 300 million metric tons of conventional fuel (2.2 bln bbls).
In May, TsentrKaspneftegaz, a joint venture established on a parity basis between Russian energy giant
Gazprom and LUKoil discovered a large oil and gas condensate deposit at the Tsentralnaya structure in
the central part of the middle Caspian Sea on the border between Russia and Kazakhstan. The deposit
was discovered within Russia's sector of the sea, 150 km (90 miles) to the east of the city of
Makhachkala.                                    Page 7 of 15
The deposit is expected to be brought into production in 2017-2018.
LUKoil Vice-President Ravil Maganov earlier said a joint venture between LUKoil, Gazprom and
Kazakhstan's KazMunaiGaz could be established under a concession agreement within 12-18 months to
develop the Caspian Sea shelf.
TsentrKaspneftegaz was established in June 2003 following the signing of a protocol to a treaty
concluded in May 2002 between Russian and Kazakhstan on dividing the seabed of the northern Caspian
Sea. Under the treaty, the Tsentralnaya block was transferred to Russia and stipulated that any
commercial reserves that may be discovered would be developed on a parity basis between Russia and
                                                                    03.06.2008 – WWW. RIA NOVOSTI

Russia’s Ryazan ready for major investment projects - governor
The authorities of the Ryazan Region, in central Russia, plan to attract investors during the St. Petersburg
economic forum, opening on June 6.
The project aims to attract investment of 600 million euros ($925 million), the governor said, adding that
the region would give guarantees, loans and tax benefits to support potential investors.
                                                                       04.06.2008 – WWW. RIA NOVOSTI

Russian crude producer LUKoil posts 140% net profit growth in Q1
Russia's largest independent oil producer LUKoil said on Wednesday its U.S. GAAP net income climbed
140% year-on-year in the first quarter of 2008 to $3.16 billion.
LUKoil, which accounts for about 1.3% of global oil reserves and 2.1% of world crude output, attributed its
net income growth to favorable market conditions, high refiner margin, and an increase in refinery
throughput and effective cost control.
Revenues in the reporting period climbed 60% to $25 billion, pre-tax profit grew 130% to $4.18 billion and
earnings before interest, taxes, depreciation and amortization (EBITDA) went up 99.3% to $4.85 billion,
LUKoil said. LUKoil earlier said its U.S. GAAP net consolidated income increased 27.1% year-on-year in
2007 to $9.51 billion.
                                                                      04.06.2008 – WWW. RIA NOVOSTI

Gasunie's Nord Stream deal to be completed next week
A deal which will see Dutch gas transportation company Gasunie join the Nord Stream gas pipeline
project will be finalized next week, a Gazprom official said on Saturday. In November 2007, the Russian
energy giant signed a deal with Gasunie, giving the Dutch company a 9% stake in the Nord Stream
pipeline being built between Russia and Germany under the Baltic Sea.
Gazprom holds a 51% stake in operator Nord Stream AG, and Germany's BASF and E.ON will transfer
4.5% each of their current 24.5% stake to the Dutch company.
The first leg of the pipeline, which will run 1,200 km (746 miles), with a capacity of 27.5 billion cu m of gas
a year, is planned to be commissioned in 2010. The construction of the second leg is due to be
completed by 2012.
                                                                          07.06.2008 – WWW. RIA NOVOSTI

Shell could join Gazprom's liquefied gas project
Royal Dutch Shell could join Gazprom's project to build a liquefied natural gas plant in northwest Siberia,
the head of the Anglo-Dutch energy giant said on Saturday. Jeroen van der Veer said he had signed a
protocol earlier Saturday on the establishment of a working group for Shell's participation in the project
with Gazprom's CEO Alexei Miller.
Asked about a possible timeframe for the plant's construction and its capacity, he said it was too early to
make any comments on that yet.
The LNG plant on the Yamal Peninsula will process the resources of the South Tambeiskoye field.
Gazprom holds licenses to develop 26 Yamal fields (with total reserves exceeding 10 trillion cubic
meters). It plans to annually produce 250 billion cubic meters of gas there.
                                                                        07.06.2008 – WWW. RIA NOVOSTI

Gazprom seeks slice of gas pipeline project in Alaska
Gazprom is seeking to take part in a project to build a natural gas pipeline from Alaska to the U.S.
mainland and Canada, the Russian monopoly's CEO said on Saturday.                                    Page 8 of 15
Britain's BP and Houston-based ConocoPhillips plan to build a pipeline to pump gas from vast reserves in
Alaska's North Slope to feed energy-hungry markets in the United States and Canada, in what would be
North America's largest private energy project with an estimated cost of $26-$30 billion.
The world's largest oil companies hold production licenses for the Arctic deposits in Alaska, but the state's
governor was reported to be in favor of a competing project proposed by local TransCanada Corp.
The local legislature, which gathered for a special session on June 3, has 60 days to review the license
proposals and allocate $500 million as a cash inducement in the project.
The pipeline will run 2,744 km (1,715 miles) from a gas treatment plant at Prudhoe Bay on the North
Slope to the Alberta hub in Canada, from where gas will be supplied onto the U.S. The pipeline's capacity
is planned at 4.5 billion cu m of gas a day.
                                                                       07.06.2008 – WWW. RIA NOVOSTI

Russian oil firm Rosneft posts 600% US GAAP net income rise in Q1
Russia's state-controlled crude producer Rosneft said on Monday its US GAAP net income increased
600% year-on-year in the first quarter of 2008 to $2.56 billion.
Revenue in the reporting period grew 99.1% to $16.4 billion, while earnings before interest, taxes,
depreciation and amortization (EBITDA) increased 225.3% to $4.7 billion.
Average daily crude output (including production by subsidiaries and shares in production of affiliates)
increased 23.9% year-on-year in January-March 2008 to 2.125 million barrels per day, compared with
1.715 million barrels in the first quarter of 2007, Rosneft said.
                                                                    09.06.2008 – WWW. RIA NOVOSTI

Gazprom CEO says company could buy major assets in France
Energy giant Gazprom is set to become a key player on the French energy market and could buy major
assets in France, Gazprom's CEO said on Tuesday.
In an interview with French Le Figaro Alexei Miller said Gazprom's subsidiary in France was currently only
supplying about 1% of natural gas consumed in the country.
                                                                     10.06.2008 – WWW. RIA NOVOSTI

Medvedev for legal action over 'failed' trans-Siberia pipeline firms
Russia's president has called for legal action to be taken against those contractors who failed to meet
their deadlines under a project to build an oil pipeline from East Siberia to the Pacific.
Delays in the East Siberia-Pacific Ocean (ESPO) pipeline, an ambitious project designed to pump up to
1.6 million barrels of crude per day eastward to Russia's Far Eastern regions, China and Asia Pacific
countries, were the focus of a meeting in the Kremlin on Monday between President Dmitry Medvedev
and Nikolai Tokarev, the head of the state-run pipeline monopoly Transneft, which is managing the
The first leg of the project was originally scheduled for completion in December 2008. However Tokarev
said in February that the commissioning of this section was now only possible in the last quarter of 2009,
partially because some subcontractors had failed to meet their obligations.
Medvedev told the Transneft president to cooperate with the government to develop measures that would
prevent any further delays in the project.
A Transneft subsidiary unilaterally cancelled a contract in late April with the Krasnodarstroitransgaz
subcontractor and filed a 29.7-billion-ruble ($1.25-billion) lawsuit against the company, claiming that the
subcontractor had only completed 17% of the work scheduled. Transneft also applied to the Prosecutor
General's Office to begin an embezzlement probe.
Moscow's Arbitration Court is to consider the suit on July 7. The court is also to rule on two similar suits
worth a total of 1.92 billion rubles ($81 million).
The ESPO first stage envisages the construction of a 2,757-kilometer (1,713-mile) section with a capacity
of 30 million tons (220.5 million bbl) of oil per year. The project's first leg will link Taishet, in East Siberia's
Irkutsk Region, to Skovorodino, in the Amur Region, in Russia's Far East.
The second leg will stretch for 2,100 kilometers (1,304 miles) from Skovorodino to the Pacific. It will pump
367.5 million barrels of oil annually. The second stage also envisages an increase in the Taishet-
Skovorodino pipeline's capacity to 588 million barrels.
                                                                             16.06.2008 – WWW. RIA NOVOSTI                                        Page 9 of 15
Gazprom to invest up to $420 billion in projects by 2020
Russian energy giant Gazprom intends to invest between 8 and 10 trillion rubles ($338-422 billion) in a
range of projects between 2009 and 2020, a company spokesman said on Monday.
He said most of the funds would be invested in transportation projects. He also said that no more than
30% of the sum would be invested in production.
Up until 2013, new projects related to development on the Yamal Peninsula in northwest Siberia, which
holds Russia's largest natural gas reserves, and on the continental shelf, will be the main target for
investment, the official said.
The company plans to increase its annual natural gas output by 100 billion cubic meters by 2020 via its
new projects, which are expected to account for about a half of Gazprom's gas production by that time.
The company produced 548.6 billion cubic meters of gas in 2007, and expects a 2.3% rise this year.
                                                                     16.06.2008 – WWW. RIA NOVOSTI

Mosenergo's IFRS net profit at $84.8 mln in Jan-Mar 08
Moscow's electric power utility Mosenergo [RTS: MSNG] said on Wednesday that its consolidated net
profit calculated to International Financial Reporting Standards (IFRS) grew over threefold year-on-year to
2 billion rubles ($84.8 million) in January-March, 2008.
The group's revenues increased 23% to 31 billion rubles ($1.3 billion), and its pretax profit more than
doubled to 3.4 billion rubles ($141.8 million) in the reporting period against January-March 2007.
The company said in a statement the increase in its revenues was mostly prompted by a hike in tariffs
and a growth in electricity and thermal power sales.
Mosenergo's IFRS net income declined 90.3% year-on-year in 2007 to 837 million ($35 million).
Mosenergo unites 17 electric power plants with an electrical power capacity of 10,600 MW and thermal
generation capacity of 39,000 MW.
                                                                         18.06.2008 – WWW. RIA NOVOSTI

Russian shareholders set to attend TNK-BP annual meeting
Russian shareholders are preparing to attend an annual general meeting of TNK-BP Holding on Thursday
despite media reports that the Russian partners were set to boycott the event.
The agenda for the meeting of the Russian-British oil venture, which is embroiled in a bitter shareholder
dispute, will include the election of a new board of directors.
An official spokesperson for the Alfa-Access-Renova (AAR) consortium representing the Russian
shareholders, Stan Polovets, told the Moscow-based Business FM radio station that the Russian co-
owners from AAR would participate in the meeting.
Media reports earlier this week said the Russian shareholders could boycott the board meeting. They are
demanding the replacement of TNK-BP CEO Robert Dudley, who they accuse of putting BP's interests
ahead of those of TNK-BP.
The Russian co-owners of TNK-BP have proposed Dudley step down and BP appoint a chief executive
outside of BP. Recent media reports said the four Russian board members have already stepped down.
The information has not been officially confirmed.
AAR, which includes businessmen Viktor Vekselberg, German Khan, Mikhail Fridman and Len Blavatnik -
said last week it would sue BP, which holds the other 50% in TNK-BP, for attempts to seize control of the
joint venture. The consortium said it planned legal action in the international arbitration court in
Stockholm, as well as in Russia.
A Russian labor regulator fined TNK-BP CEO Dudley and the oil company 3,000 rubles ($125) and
40,000 rubles ($1,650), respectively, on Monday for labor code violations.
Set up in 2003, TNK-BP is Russia's third largest producer. It accounts for a quarter of BP's overall output.
                                                                      25.06.2008 – WWW. RIA NOVOSTI

ERG, Lukoil sign joint venture for oil refining
ERG SpA, Italy's largest independent refiner, said Tuesday that it has signed a joint venture with Lukoil,
Russia's largest private oil company, for oil refining. ERG said in a statement that a new company will be
created -- 51 percent owned by the ERG Group and 49 percent by Lukoil. ERG will contribute the assets
of its refinery in Priolo, a town near Syracuse, eastern Sicily, for which Lukoil agreed to pay 1.3 billion
euros, the statement said. The Sicilian facility has a total capacity of about 320,000 barrels per day. Italy's                                    Page 10 of 15
industry ministry undersecretary Adolfo Urso told reporters the agreement is "the biggest Russian
investment in Italy."
                                                         25.06.2008 – WWW. TODAYSZAMAN.COM

Russian, EU Leaders Discuss Energy and Security
Energy and security dominated the Russia-EU Summit in Western Siberia, where Kremlin leader Dmitri
Medvedev called for creation of all-European institutions to replace long-standing structures, including
NATO. VOA Moscow Correspondent Peter Fedynsky reports. European Union leaders held their first
meeting with Dmitri Medvedev in his capacity as Kremlin leader in the western Siberian town of Khanti
Mansiysk, which pumps oil and gas for Europe and supplies Russia with much of its newfound energy
European Commission President Jose Manuel Barroso acknowledged EU dependence on Russian
energy during        a    joint  news     conference    at   the     end  of   the   two-day summit.
All sides agreed to meet in Brussels on July 4 for talks on a new EU-Russian cooperation agreement.
President Medvedev said the new accord should serve as a brief framework for relations and should not
go into excessive details. The current agreement between Moscow and Brussels is 11 years old.
EU foreign policy chief Javier Solana said contemporary challenges, including climate change, terrorism,
and proliferation of weapons of mass destruction cannot be resolved without EU and Russian
participation. Solana also praised President Medvedev for helping the European Union hold talks with
Iran. He added that Brussels would cooperate with Moscow in the Middle East, and would also help
resolve so-called frozen conflicts that fester in areas of the former Soviet Union.
In an apparent attempt to increase Russian influence in Europe at the expense of the United States,
President Medvedev said it is banal but true that the continent is the common home of all who live there.
The Russian leader says security responsibilities should not be passed onto neighbors. He says all
European security issues, including missile defense and the Conventional Forces in Europe Treaty
should be decided collectively.
Russia rejects Washington's argument that a proposed Central European missile defense system is
designed to guard against an Iranian attack. Angered by Washington's push for the system, Moscow has
suspended its participation in the CFE treaty, which limits the amount of conventional weapons a
signatory can deploy in Europe.
Mr. Medvedev reiterated his proposal for talks to create a new universal European security structure,
saying all of Europe's existing institutions are limited or outdated. These include NATO, which has
expanded closer to Russia, and the Organization for Security and Cooperation in Europe, which has
criticized Russian election procedures.
                                                            27.06.2008 – WWW. TURKISHWEEKLY.NET

Gazprom hails state involvement in expansion plans
The head of Gazprom, the Russian natural gas monopoly, said Friday that its ties to the Russian
government gave it a huge growth potential and pledged to become the world's energy leader.
The chief executive, Alexei Miller, told a shareholders meeting that Gazprom was in a better position to
compete in international energy markets because its links to the government helped it secure the rights to
develop new, strategic oil and natural gas reserves.
"The growing competition for possessing hydrocarbon reserves leads to the fact that companies with
state participation have significant advantages in securing dominant positions on international markets,"
Miller said. "Today the most relevant investment idea in the energy sector is to invest together with
the state."
The investors at Gazprom's shareholders meeting also accepted the formal resignation of Dmitri
Medvedev, the president of Russia, as the company's chairman and as expected named the former prime
minister, Viktor Zubkov, to succeed him.
Both Medvedev and Miller have denied and state involvement in a shareholder dispute at BP's Russian
venture TNK-BP, amid reports that Gazprom is vying to take a stake in the Russian oil producer.
Gazprom also announced at the meeting an initiative to establish a chain of filling stations in Europe for
cars powered by natural gas, Miller said. He said this would involve one or more European partners but
declined to say to whom the proposal had been made.
                                                                          27.06.2008 – WWW. IHT.COM                               Page 11 of 15
Gazprom signs deal to prospect four deposits in Tajikistan
Russian energy giant Gazprom said on Tuesday it had signed a deal with the government of Tajikistan on
prospecting four oil and gas fields in the Central Asian country.
Valery Golubev, deputy chairman of the Gazprom management committee, said after his meeting with
Tajik President Emomali Rakhmon that Russia was willing to help the country develop its energy
According to Golubev, Tajikistan's total oil and gas deposits are estimated at 3 trillion cubic meters of
natural gas.
Under the agreement, Gazprom will carry out a range of geological prospecting projects at the four
deposits that the company considers to be the most promising.
Tajikistan currently consumes 800 million cubic meters of natural gas per year. The four deposits are
expected to reach their target production capacity in three to five years, to bring Tajikistan's annual
natural gas output up to 2 billion cubic meters and ensure the republic's energy independence.
                                                                       10.06.2008 – WWW. RIA NOVOSTI

Tethys petroleum signs Tajikistan PSC
The Company has created history in Dushanbe when Tethys' CEO Dr David Robson and Gul Sherali, the
Minister of Energy and Industry of the Republic of Tajikistan (the State Authorized Body of the Tajik
Government), signed the first ever Production Sharing Contract (PSC) awarded in Tajikistan.
The awarding of the PSC was the culmination of many months of close collaboration between Tethys
personnel and the Tajikistan government.
The final area awarded to Tethys' subsidiary Kulob Petroleum Limited ("KPL") under the PSC is almost
four times the size that was originally under discussion. The total net area covered under the PSC is
approximately 34,785 km2 (8.6 million acres). The area under the PSC (The "PSC Area") is in the south-
western part of Tajikistan and surrounds and includes the original Kulob Area, a large highly prospective
region which has existing oil and gas discoveries but which has seen limited exploration to date. The PSC
Area includes the Khatlon Region and the area around the capital city, Dushanbe and includes more than
50 different prospective structures which have already been identified in the area by Tajik Geology.
Tethys believes that the PSC Area has considerable potential for oil and gas condensate. The area
includes almost the entire Tajik portion of the Afghan-Tajik basin, an extension of the prolific Amu Darya
basin which contains giant and supergiant gas and gas condensate fields in nearby Turkmenistan and
                                                                     16.06.2008 – WWW. RIIGZONE.COM

Energy bill may reach $50 billion by year's end
Turkey expended $15.1 billion, or one-fourth of its total import spending, for oil, natural gas, liquefied
petroleum gas (LPG) and coal imports in the first four months of the year, with experts saying energy
costs may well exceed $50 billion by the end of the year. If the upward trend in energy prices continues,
Turkey, already a net importer of energy, will receive another blow to its current account balance.
Considering the fact that oil has already passed $140 per barrel in international energy markets, with the
prices of other energy raw materials moving in parallel to those of oil, the deterioration in the current
account balance is likely to be seen by year's end, say analysts.
In the first four months of the year, 54.1 percent of Turkey's foreign trade deficit stemmed from energy
imports. At the current price and demand level, the year-end energy bill for Turkey is expected to top $50
billion, and the net energy import volume is forecast at $43 billion.
The $15.1 billion spent on imports between January and April of this year mark a 59.8 percent increase
over the same period last year, when energy imports amounted to $9.44 billion. In 2003, when energy
prices were relatively low, energy imports accounted for 16.7 percent of overall import volume.
This figure dropped to 14.8 percent in 2004, while reaching 18.2 percent in 2005, 20.7 percent in 2006
and 19.9 percent in 2007. Turkey spent $11.6 billion on energy imports in 2003, $14.4 billion in 2004,
$21.3 billion in 2005, $29 billion in 2006 and $28.7 billion in 2007.
                                                                 25.06.2008 – WWW. TODAYSZAMAN.COM                               Page 12 of 15
Gazprom and Turkmenistan in talks on natural gas
Alexei Miller, the chief executive of Gazprom, the Russian state-controlled energy company, held talks
Tuesday with President Gurbanguli Berdymukhamedov of Turkmenistan on energy agreements in
advance of a visit to the region this week by President Dmitri Medvedev of Russia.
Medvedev's visit, which starts Thursday and takes in Azerbaijan and Turkmenistan, is his third trip outside
Russia since taking office in May and his second to the energy-rich former Soviet states on the
Caspian Sea.
Coming just over a month after he visited Kazakhstan, the trip underlines Russia's determination to
maintain its grip on resources flowing out of the region.
Last December, when he was president, Vladimir Putin signed an agreement with his Turkmen and
Kazakh counterparts to upgrade a natural gas pipeline running through Russia along the northern coast
of the Caspian.
Work on the pipeline is to begin this year and take 18 months to complete, the country's deputy energy
minister, Anatoly Yanovsky, said at the World Petroleum Conference in Madrid on Tuesday, Bloomberg
News reported.
But Russia could be planning to increase the amount of Turkmen gas it buys in the short term to make up
for any potential shortfalls caused by Gazprom's failure to open new domestic fields. Exports to Russia
last year accounted for well over half of Turkmenistan's total production, and Russia resold the vast bulk
of the gas to Ukraine.
The visit by Medvedev to the region comes at a crucial moment in gas transmission agreements after
Gazprom's commitment in March to start paying European prices for gas from Central Asia by next year,
said Jonathan Stern, director of gas research at the Oxford Institute for Energy Studies.
By next year, Gazprom could start paying $250 per thousand cubic meters, or 35,000 cubic feet, for
Central Asian gas, Stern said, leaving Central Asian states with less incentive to sell to Europe
and China.
The pipeline agreement came only after Gazprom resolved a pricing dispute with Turkmenistan by
agreeing to increase payments to $150 by the middle of this year.
                                                                             30.06.2008 – WWW. IHT.COM

Ukraine threatens to retaliate if Russia hikes gas prices in 2009
Ukraine warned Friday it would raise its fees on Russian gas shipments through its territory and on
underground storage services if Russia abruptly hiked gas prices in 2009. He said such "market
conditions would also apply to all other components of the gas trade, notably transit and storage."
Russia on June 6 said it would double the present amount that Ukraine pays for gas from next year as a
result of the higher costs of acquiring the gas from Central Asia.
Although Russia holds massive gas reserves of its own beneath its vast Siberian expanses it also imports
large amounts of gas from Central Asian neighbours due to a lack of investment in developing its own
In March, Central Asia's main producers, Kazakhstan, Turkmenistan and Uzbekistan, said that they would
charge Russia "European" prices -- almost double current levels -- starting from 2009. Ukraine currently
pays Russia 179.5 dollars (115 euros) per thousand cubic metres of gas. Last month the head of
Ukraine's Naftogaz, Oleg Dubina, said Ukraine would only be ready to pay European prices in five years'
An energy price hike imposed by Russia would put further pressure on Ukraine's overheating economy,
which is struggling under soaring inflation that saw consumer prices climb 30 percent in the year to April.
Gas has long proved a sticking point in relations between Russia and Ukraine, which since Yushchenko's
election in 2005 has tried to reorient its foreign policy from Russia towards the West.
A price dispute in 2006 saw Russia briefly cut off all of Ukraine's gas, causing disruption to supplies to the
European Union, which relies on Russia for a quarter of its supplies.
                                                                13.06.2008 – WWW. TURKISHPRESS.COM                                   Page 13 of 15
Energy: Caspian Treasure
The following is an excerpt of testimony delivered 12 June before the U.S. Senate Foreign Relations
Committee. It was presented by Zeyno Baran, director of the Center for Eurasian Policy at the Hudson
Institute, a Washington-based public policy institute.]
Since Russia cut off gas supplies to Ukraine on 1 January 2006 — the same day it took over the
presidency of the Group of Eight (G8) — there has been increased awareness in Europe of their
dependence on Russian gas supplies. There is talk about formulating a united external energy policy
within the European Union to diversify supply sources and routes, but the 27 countries have been unable
to reach consensus because of conflicting priorities.
The EU has so far failed to come together as a single voice partly because the issue has not been framed
correctly. The unity they need is in negotiations with Russia, and specifically its giant gas monopoly
Gazprom, which serves as the Kremlin's leading foreign policy arm. There is simply no other county that
poses the same political and economic challenge to the EU.
European energy security and supply diversification as a concept is important, but this is not an area
where direct U.S. involvement is necessary or appropriate. U.S. leadership is needed, however, to enable
Caspian producers (mainly Azerbaijan, Kazakhstan and Turkmenistan) non-Russian controlled export
options to Western markets. Europe's independent access to Caspian hydrocarbons would prevent
further Russian control over their energy infrastructure, and thereby their foreign policy.
There is an excellent precedent: the Baku-Tbilisi-Ceyhan (BTC) and Baku-Tbilisi-Erzurum (BTE) pipeline
projects. Even though the governments of Azerbaijan, Georgia, and Turkey backed these projects, the
United States government's unequivocal support allowed these countries to proceed without fear of
Russian repercussions. Similarly, it gave companies the confidence to invest in a major project like BTC
or BTE that might have faltered in light of strong opposition from Moscow. In fact, even though the
consortia for the BTC and BTE pipelines consisted mostly of European companies, European
governments relied on U.S. diplomacy to shield their companies from Russia.
                                                               16.06.2008 – WWW. BUSINESSWEEK.COM

Gas prices for Ukraine and Europe said to align from 2009
Gazprom chief executive Alexei Miller does not rule out that possibility that, if Central Asian natural gas
are purchased at European prices, the gas price for Ukraine could jump to $400 per 1,000 cubic meters,
he told a press conference today. Miller stressed that the price of gas for Ukraine would probably come
close to the average European level starting from January 2009.
Meanwhile, the price of gas for Russian industrial enterprises on the domestic market "will always be 40
percent lower than the price of supplies to Europe," the company's head told journalists. Asked if it was
possible to set an equal gas price for Russian and Ukrainian industrial customers after 2011 (once gas
prices are liberalized), he explained that Russia, being a major energy producer, would always have a
competitive advantage, because, among other things, it would not have to pay an export duty and its
transportation costs would be lower.
                                                                          27.06.2008 – WWW. RBC.COM

Govt to oil energy ties with CIS, Russia
The petroleum ministry is planning a conclave of top energy officials and honchos of oil companies from
Central Asian countries and Russia, the biggest crude producer outside the Opec cartel, in November.
The move forms part of a policy to use oil as a diplomatic tool for building energy security by developing
supply sources away from volatile West Asian markets.
Key countries from the Caspian and Central Asian regions such as Kazakhstan, Turkmenistan,
Uzbekistan and Azerbaijan; and Russia are to be invited. The ‗India-CIS Round Table' has tentatively
been set for November 21 but may be changed as Turkmenistan has scheduled a ministerial round at the
same time. India's ambassador to Turkmenistan is being roped in to clear the air.
In an era when policy initiatives don't last beyond the tenure of individual ministers, it speaks volumes
about the strength of the idea that Mani Shankar Aiyar's successor -- Murli Deora -- is willingly carrying
As the first UPA oil minister, Aiyer started it all. He first hosted a ministerial summit with West Asian
exporting countries, including Saudi Arabia, and four Asian buyers. This earned it the sobriquet, ‗Mini
OPEC'. The second was with Central Asian and Russian suppliers and the Asian buyers.
Last year, Deora hosted the India-Africa Energy summit. While Africa is the latest hunting ground for                                Page 14 of 15
Asian economies, Central Asia and Russia have historically been coveted for their hydrocarbons
treasure. Due to its geographical proximity, China enjoys an advantage over India in tapping Central
Asian                                                                                                 resources.
But recent shifts in geopolitical equations can remove transportation hurdles that have kept India away
from Central Asian oil/gas despite its cultural affinity with the region. One, improvements in ties with
Pakistan and Afghanistan have brightened the prospects of the gas pipeline project from Turkmenistan.
Two, upswing in ties with Israel and Turkey also opens prospects of nearly halving distance for shipping
Central Asian or Caspian oil through the Eilat-Ashkelon (Israel) and the Baku-Tbilisi-Ceyhan (Azeri-
Turkish)                                                                                               pipelines.
Naturally, the round table is expected to focus on joint or cross-investments -- India investing in fields and
facilites of the producing countries, and the suppliers investing in refining and gas in India. New Delhi is in
talks for a stake in fields of Kazakhstan and is trying to establish a footprint in refining, pipelines and LPG
bottling in Turkmenistan, Uzbekistan and Azarbaijan. In Russia, it has equity in Sakhalin-I and is keen on
stakes in upcoming exploration, refining, gas and petrochemicals projects.
                                                                         20.06.2008 – THE TIMES OF INDIA                                     Page 15 of 15

Description: European Commission Approval Joint Agreement Tnk-Bp document sample