Energy Blast – June 18, 2008

TNK-BP’s Russian shareholders reportedly have rejected a buyout offer from BP, accusing the British company of trying to seize control. “The TNK-BP dispute promises to define Dmitry Medvedev’s presidency in the same way that the Yukos bankruptcy defined Vladimir Putin’s presidency.” Analysts see the conflict as “connected with politics, by both sides”. Alexei Kudrin has called for a “civilized” end to the dispute. Kudrin’s insistence that the row will not affect investment in Russia is seen by one journalist as “an extravagant denial”. The Federal Anti-Monopoly Service is to investigate domestic fuel providers on suspicion of colluding to raise prices on aviation fuel. “The fact that domestic prices supplied by Russian oil companies in conditions of a monopolized market exceed export [prices] is evidence of a violation of anti-monopoly laws,” they said. Gazprom chief Alexei Miller has backed Mosenergo’s plans to spend billions of dollars to substantially boost output, after initially delaying the investment. Biotekhnologia Corp, part of state corporation Rostekhnologia, will team up with PetroVietnam and Metropol to produce bio-ethanol in Vietnam. Gazprom’s export revenue will surge 60% this year.