Energy Blast, Jan. 1, 2008

Serbia is deeply divided by Gazprom’s $590 million bid to take over the state petroleum monopoly NIS, a deal which is strongly leveraged upon a connection to the planned South Stream pipeline. The improving profitability of Russia’s domestic market is leading oil companies like Rosneft and TNK-BP to increase capital investment for refining. Kazakh President Nursultan Nazarbayev has summoned representatives from Eni, Exxon Mobil, Total, Royal Dutch Shell and others to hold discussions on Jan.11 on the renegotiation of oil contracts at the Kashagan field, who are hoping to settle the deadlock.

PetroChina is planning to invest $2.2 billion in a gas pipeline project to connect Turkmenistan and China.Reports are leaking that Royal Dutch Shell may be close to cutting 3,600 jobs worldwide, raising concerns over the share price.Iran is reducing gas exports to Turkey after Turkmenistan cut its gas exports to Iran.