Energy Blast – August 7, 2009

Vladimir Putin has rejected the 15-year old international Energy Charter Treaty.  According to the Prime Minister, Turkey and Russia ‘agreed on everything’ regarding South Stream at their energy deal meeting and added, ‘it is obvious there is demand’ for the pipeline.  Italian President Berlusconi was also present at the talks.  In return for South Stream, Russia has agreed to be involved in building a pipeline across the Anatolian Peninsula and reasserted a commitment to expand an existing Black Sea gas pipeline.  Is it a high price to pay? wonders the FT, a ‘confirmation that when vital interests are at stake, there are no friends, only partners’.  Tim Summers, the most senior former BP manager at oil firm TNK-BP has decided to step down, to be replaced by the head of BP Azerbaijan, Bill Schrader.  Lukoil has reportedly signed $1.2 billion of loans with 12 overseas banks.  Hungarian refiner MOL has agreed to build a gas turbine in Siberia with Russneft in order to fulfill the criteria of its production license.  Gazprom has confirmed that Naftogaz Ukrainy paid in full for its July gas supplies.   Russia’s gas exports to countries other than those in the former Soviet bloc decreased by 45% in the first half of 2009.  Turkmenistan may increase its gas supplies to Iran as it builds a new pipeline.