Energy Blast – April 24, 2008

Gazprom is to buy majority control of TNK-BP for $20 billion by the end of the year. It was reported that Gazprom had warned its patience was running out in the talks to finalize the purchase of Kovykta from TNK-BP. Serbian lawmakers will delay ratifying an oil and gas agreement with Gazprom until May 11 elections are held. Former electricity monopoly UES will postpone board meeting issues as setbacks threaten to stall Russia’s vital electricity reforms. The company has just nine weeks left to sell its three large generating companies. The main provider of electricity to Moscow, Mosenergo, is failing to carry out its development plans and threatening the city’s growth, according to UES. Zarubezhneft, “Russia’s oldest company active in the oil and gas industry” is reportedly seeking Iranian investment opportunities. “The advantage of oil at the present [cost] level is that it forces conservation.”