Energy Blast – June 17, 2010

Gazprom and Romania have started negotiations on the latter’s joining of the South Stream pipeline network, apparently as a possible replacement for Bulgaria.  If Belarus does not manage to pay off its gas debts by June 21, Gazprom claim it will be obligated to limit supplies, the Moscow Times reports.  The head of Lukoil has suggested that oil and gas production will fall after 2011 if the government retains restrictions on geological exploration.  The government’s decision to re-introduce oil export duty for East Siberian fields will apparently provide the budget with $11 billion over the next three years.  The Moscow Times reports that a decision on reintroducing export duties has in fact been delayed.  RusHydro plans to increase its market value to $45 billion by 2015.  Rosneft and U.S. rival Chevron are reportedly set to sign an agreement to jointly develop a Russian oil field.   Kazakhstan’s oil production sharing agreements with foreign oil firms may be losing money, but there are no plans to abandon them, says Reuters.  The Washington Post reports on how BP will come up with its monumental $20 billion escrow fund; suspending dividends will be one method, says the Telegraph.