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Energy Blast – Aug 23, 2011

Russia-Libya Business Council member Aram Shegunts is quoted in The Independent today as saying, ‘We have lost Libya completely’, as reports suggest that Russia will be frozen out of future Libyan energy deals, should NATO-backed rebels succeed in overthrowing Gaddafi, thanks to its opposition to sanctions.  ‘Western nations — especially the NATO countries that provided crucial air support to the rebels — want to make sure their companies are in prime position to pump the Libyan crude.’  But full productivity could be a long way off, says the FT.  Reuters sees Italy’s Eni ‘leading the charge back into Libya’.  Ukrainian President Viktor Yanukovich complains that the ‘unequal agreement’ on gas prices with Russia could undermine long-term cooperation between the two.  LUKoil explains its request to extract oil off of Norway’s coast (granted last week).  Gazprom Neft is in the process of signing a contract under which it will supply Afghanistan’s state oil company with 10,000 tons of diesel next month.  China’s imports of Russian crude fell 45% in July, year-on-year, reaching their lowest level in seven years, causing Russia’s position as a global crude supplier to drop.  Talks between North Korean leader Kim Jong Il and President Dmitry Medvedev are expected to focus on Gazprom and Korea Gas Corp’s attempts to secure an LNG supply route; a successful pipeline to North Korean could compete with fuel deliveries from Shell and Total, says Bloomberg.