Kent F. Moors, Ph.D.; Contributing Editor

On August 30, a source within the Russian Ministry of Industry and Energy (MIE) confirmed that the government has approved plans to build a new export crude oil pipeline bypassing Belarus. The new line should parallel the current Baltic Pipeline System (BPS) and has the provisional working title of BPS-2. Initial estimates put the length of BPS-2 at 950 kilometers and the construction cost at about $2 billion. More importantly, it could carry a daily volume capacity of about 1 million barrels, enough virtually to eliminate the need for the current Druzhba export pipeline crossing Belarus.  

Kent F. Moors, Ph.D.; Contributing Editor
August 16, 2007

Sources indicated on August 16 that the current visit to Baku by US assistant secretary of state Daniel Sullivan would result in a bilateral pipeline feasibility report accord. At issue is the Trans-Caspian natural gas pipeline (TCP), intended to direct Caspian basin natural gas on a southern export route to Turkey.

Kent F. Moors, Ph.D., Contributing Editor
August 1, 2007

After several months of saying he would not leave, Mikhail Gutseriyev confirmed on July 29 that he would in fact sell his RussNeft oil company. Most recently on July 24, He had denied press reports stating that his departure was imminent. Market contacts indicate the sale would finalize today (July 31). The total value of the transaction, however, is still in some dispute. According to Kommersant, one of the two major Moscow business newspapers, the cost is around $3 billion. However Vedomosti, the other major business daily, cited unnamed sources claiming the transaction actually is worth anywhere between $6 billion and $9.5 billion.

Kent F. Moors, Ph.D., Contributing Editor
July 20, 2007

In a consolidation move likely to have an impact in Europe and beyond, the Russian government intends to swap its positions in domestic natural gas retail and distributing companies for shares in Gazprom. Valery Nazarov, director of the Federal Property Management Agency (FPMA), made the announcement on July 17. The swap will take place before the end of 2007.

Kent F. Moors, Ph.D.,
Contributing Editor

June 30, 2007

The already heated export route contest intensified on June 23 with the announcement of the “South Stream” natural gas pipeline. This one combines Russian natural gas giant Gazprom and Italian major Eni. Alexander Medvedev, Gazprom’s deputy CEO and head of export arm Gazexport, and Eni CEO Paolo Scaroni signed a memorandum of understanding (MOU) on the project.

Kent F. Moors, Ph.D., Contributing Editor
June 21, 2007


According to a statement on June 19 from Gazprom deputy CEO Aleksandr Annenkov, the Russian natural gas giant has petitioned the government to prevent gas export deals from the offshore Sakhalin-1 project. Following the company’s acquisition of a majority holding in Sakhalin -2, attention has turned to its moves on the other current and prospective deposit developments off Sakhalin Island.

Kent F. Moors, Ph.D.
Contributing Editor

May 30, 2007

Following a May 28 decision by an Irkutsk regional arbitration court, RUSIA Petroleum (RP), a subsidiary of TNK-BP (Russia/UK), is in danger of losing the development license for the huge Kovykta gas condensate field.

RP “prospects for retaining control look dim,” one knowledgeable regional analyst told us on May 29. “This has all the markings of another move to squeeze out foreign ownership at a major field and transfer it over to a government-controlled company,” the source added.  

Kent F. Moors, Ph.D., Contributing Editor

May 11, 2007

Russian President Vladimir Putin has taken to his own version of shuttle summit diplomacy in a move to stymie what Moscow regards as a hostile energy conclave in Poland. Putin met with Kazakh President Nursultan Nazarbayev in Astana, followed by both heads of state traveling on to Ashgabat and meetings with new Turkmen President Gurbanguly Berdymukhammedov. The Kremlin puts Putin’s agenda as covering most of Central Asia over a one-week period, and gives as its official rationale the improvement of trade and economic relations among the nations. [click on article title for full story]

Kent F. Moors, Ph.D., Contributing Editor
April 30, 2007

On April 28, sources at Russia’ s leading crude oil producer LUKOIL confirmed that the company is moving back into Iraq. Company president Vagit Alekperov had tacitly indicated the return was coming in sidebar comments during a meeting in Moscow on April 25.  [click article title for full story]

Kent F. Moors, Ph.D., Contributing Editor
March 30, 2007

Kazakh Foreign Minister Marat Tazhin confirmed on March 28 that Astana has decided to forego the building of the Trans-Caspian natural gas pipeline at this time. Tazhin noted that the Kazakh government was not convinced that the project had sufficient return to justify its construction, although there does seem to be a chance that Kazakhstan would re-visit the issue later, subject to data indicating the pipeline would be economically attractive. The minister released his written statement after meeting with Xavier Solana, the European Union (EU) foreign policy representative, EU commissioner Benita Ferrero-Waldner, as well as the foreign ministers of Germany, Uzbekistan, Tajikistan, Kyrgyzstan and Turkmenistan.   [click article title for full story]