Energy Blast – June 4, 2008

“Practically all” the top managers at OGK-2 have resigned, leaving the company with a severance bill of $23.51 million, supposedly “enrag[ing] its owners,” Gazprom and Unified Energy Systems. TNK-BP says its management recommended almost halving the dividend for 2007, despite a 25% increase in net operating profits. The company plans to double investment in refineries this year to improve the quality of its fuel. “South-east Europe and Hungary emerged from communism with a big electricity sector built to serve the heavy industry that slumped after 1989, leaving a surplus. But since 2000 surging growth has pushed demand above socialist-era levels.”