Energy Blast – Oct 29, 2010

Russia and Ukraine will create a working group to deal with the particulars of gas contracts, as despite ‘trust between the leaders‘, talks have still not produced an agreement on the gas pricing formula.  Russia is taking steps towards setting up its own security firms to protect its mineral and energy holdings in overseas conflict zones and shift the responsibility away from private, foreign security companies, according to a Duma source.  According to Prime Minister Vladimir Putin, Russia can handle an annual oil output of 500 million tons ‘for decades ahead‘.  A 51%, $1.8 billion stake in Poland’s Enea looks likely to go to Kulczyk Holding; GDF Suez has been shut out, reports the FT.  Total, Exxon and Shell have all reported strong third-quarter results, largely due to higher crude prices.  New reports show that Halliburton and BP knew, weeks ahead of the Gulf of Mexico oil spill, that the well’s seals were unstable.