Energy Blast – May 17, 2011

According to the Financial Times, the BP-Rosneft deal for Arctic exploration, referred to by some as the ‘deal of the century’ has collapsed, after the company failed to reach an agreement with the AAR consortium, its partners in TNK-BP, within the agreed deadline.  Rosneft will, Reuters reports, instead seek other partners to explore the Arctic Kara Sea blocks.  The BBC says that the British giant maintains it will continue in talks with the state-controlled group.  Prime Minister Vladimir Putin was seen to keep his distance on proceedings.  Russia plans to increase its export duty on most crude shipments by 1.9% on June 1 to the highest level since 2008 after oil prices rose.  Gazprom has reported increased sales of natural gas to Italy by 44% in the first quarter as civil war in Libya reduced supply from the North African country.  Meanwhile with prices set to rise, Ukraine will reduce imports of Russian natural gas in the second half, its Prime Minister Mykola Azarov has affirmed.  Reuters has a Q and A on Pakistan’s controversial Chinese-built Chasma nuclear complex.