Energy Blast – September 25, 2009

Vladimir Putin told a meeting of international oil company heads that he is seeking ‘stable and long-term’ cooperation for gas extraction in the Yamal peninsula, which the country hopes could lead to a 25% share of the world’s LNG market.  ‘Mr Putin indicated that favourable fiscal treatment might be on offer’ at his warm reception for the companies, the Times says.  Putin’s unusually solicitous welcome is the mark of ‘desperation’, the Telegraph suggests and argues that if Western companies consider their previous altercations with Russia in the oil industry, the luster of Putin’s offers may fade.  Oil and Gas Eurasia details which former Yukos assets belonged to SeverEnergia, the Italian firm in which Gazprom has just bought a controlling interest.  Russia plans to ship 4.5% more Urals and Siberian Light crude oil from four Baltic and Black Sea ports next month.  Ukraine’s Naftogaz is hoping to avoid defaulting on $500 million of eurobonds due this month by offering five-year securities in exchange.  Norway has begun attempts to explore oil and natural gas in more inaccessible regions, such as its Arctic volcanic island of Jan Mayen, as the country seeks to counterbalance its dwindling North Sea output.  The story of the Nabucco pipeline has been no less dramatic than its operatic namesake, says a piece in the Telegraph.