Posted on 12/21/2004 7:47:00 PM PST by wagglebee
Gazprom, Russia's state-controlled gas monopoly, could team up with the China National Petroleum Corporation to develop the Yukos oil company's main production asset, sold to a mystery bidder on Sunday.
Speaking in Germany, Vladimir Putin, the Russian president, said: "We don't rule out that CNPC would take part in the production of Yuganskneftegas, which was sold at an auction." He said CNPC did not participate in the auction. "However, Gazprom and CNPC have reached an agreement about co-operation in the energy sector."
Immediately after Mr Putin's statement, Gazprom said a new memorandum, signed two days before the auction, covered strategic co-operation with China in the oil sector - particularly over oil projects in Russia. It already has an agreement with CNPC over gas.
Gazprom said yesterday: "There is a real energy boom in Asia and particularly in China. In developing Gazprom . . . the eastern direction has been identified as a priority."
Yegor Gaidar, Russia's most prominent liberal economist and a former acting prime minister, said: "If one accepts that the government has any strategy in regard to Yukos, a joint venture with China signifies a long-term change of focus towards Asian markets."
Mr Putin's statement comes after an injunction by a US bankruptcy court blocking the sale of Yuganskneftegas and is likely to cause alarm in the US, which saw Russia as an alternative source of oil to the Middle East.
US companies, including ExxonMobil and Chevron Texaco, were negotiating with Yukos about a possible stake before the government launched its campaign against the company and arrested Mikhail Khodorkovsky, its former chief executive.
The US administration protested over Russia's auction of Yugansk. Scott McClellan, White House spokesman, warned that it could harm foreign investment in Russia. "We are disappointed that Russia went ahead with the auction of the Yukos subsidiary," he said. "We have communicated to the Russian government repeatedly that its handling of the Yukos matter could have a chilling effect on foreign investment in Russia and affect its role in the global economy."
Mr Putin did not say who owned Baikal Finance Group, which last weekend bid $9.35bn (£4.85bn) for Yuganskneftegas. However, he said behind it stood a "group of individuals with experience in the oil sector".
Vedomosti, the Financial Times' sister paper, identified Baikal's representatives at the auction as employees of Surgut neftegas, the cash-rich oil company that operates in the same region as Yugansk.
Although Mr Putin was careful not to mention Gazprom in relation to the auction, it is likely to end up the owner of most of Yugansk's assets even if Surgut picks up some reward for its role, one person close to the sale said.
"It is clear that Gazprom's interest in Yugansk will be realised," the person said.
* Separately, Gazprom yesterday said it had sold Gazpromneft in a manoeuvre to avoid the US court injunction that prevented the holding company for its oil assets from taking part in the auction for Yugansk.
The mother of all confederations. And they hate the West. For now, they tolerate us as they seize a few more means of production and acquire a few more bonds to control our economy. Then, the clenched fist, as long promised. How does that Tool song go? "Dumbfounded dip#@!#?" That's what I predict ... and it won't be a comet, it will be combined Russian and Chinese munitions ...
Ive read that ONGC or Indian oil,the 2 large state owned Indian oil companies are planning to bid for Yukos assets as well.
similar news; different source:
YUKOS to supply oil to China in January
December 23, 2004 Posted: 09:18 Moscow time (05:18 GMT)
http://www.russiajournal.com/news/cnews-article.shtml?nd=46832
YUKOS has announced its intention to supply 280,000 tons oil to China in January, Russian Railways Vice President Salman Babayev told journalists. According to him, LUKoil plans to supply 240,000 tons to the region. Sibneft will transport 30,000 tons more.
As for the transportation of Russian oil to China in 2005, Russian Railways President Gennady Fadeyev announced that about 10m tons of oil would be supplied, as the Chinese railway infrastructure cannot make the transportation of larger amount of oil possible. Therefore, oil supplies to China will be boosted to 30m tons by 2007-08.
related, older topic:
Yukos oil cut set to dominate Chinese premier's visit to Russia
yahoo ^
Posted on 09/21/2004 7:01:13 AM PDT by maui_hawaii
http://www.freerepublic.com/focus/news/1222381/posts
Some say a comet will fall from the sky
followed by meteor showers and tidal waves
followed by fault lines that cannot sit still
followed by billions of dumbfounded dip-$h!ts..
some say the end is near
some say we'll see armageddon soon
I certainly hope we will
I sure could use a vacation.
I can hear them double bass drums getting spanked ... LOL! Kudos to the Sons of Phoenix!
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