Long article in Sat's NY Times abt closer energy relations between Russia and the US. IMO, it is a positive development that we are becoming less dependent upon Arab oil. There is a tremendous switch from the residual cold-war mentality and, unless the moderate Muslim world becomes more vigilent against terrorism, we will have increasingly close energy relations with Russia.
Also--
19:00
[Monday 22nd October, 2001]
Russia says no plans to cut oil output
MOSCOW - Foreign Minister Igor Ivanov said on Monday that Russia would
coordinate oil policy and sales with OPEC, but the question of a possible cut in
oil output was not under discussion for the moment, Interfax news agency
reported.
Ivanov was speaking after a meeting between Russian President Vladimir
Putin and Venezuelan President Hugo Chavez, who is nearing the end of a
whirlwind tour of major oil producers and consumers in Europe and the Middle
East.
"Now there is no talk about cutting oil production in our country. We are
talking only about coordinating prices," Ivanov was quoted as saying.
Ivanov added Russia would closely watch OPEC's meeting in Vienna on
November 14 and could make some decisions in line with the cartel's strategy.
Putin and Chavez met earlier on Monday to discuss oil prices but stayed away
from any comments on possible Russian actions to face a slump oil prices.
"Russia is supporting a fair corridor for oil prices," Putin was quoted by state
agency ITAR-TASS as saying.
Neither elaborated on possible measures that Russia could bring to OPEC's
strategy to face the drop in world oil prices.
Chavez said on Wednesday it would be useless for OPEC oil exporters to
reduce production further if countries outside the cartel kept increasing output.
Russia, one of the leading non-OPEC oil producers, has continually boosted
exports to service its debt burden.
Russia is expected to increase oil output to some 340-350 million tonnes (7.03
million barrels per day) of crude in 2001 from 323 million tonnes in 2000 while
exports could rise to 155 million tonnes from 143 million. /Reuters/
15:52
[Monday 22nd October, 2001]
Yukos says to buy two Kvaerner units
MOSCOW - Russia's second-biggest oil firm YUKOS said on Monday it had
agreed to buy two London-based units of struggling Anglo-Norwegian
engineering group Kvaerner for $100 million.
"YUKOS...has accepted an offer from Kvaerner ASA to purchase the
Hydrocarbons and Process Technology business of Kvaerner, on a debt-free
basis, for an aggregate consideration of $100 million," the Russian firm said in
a statement.
YUKOS owns a 12.1 percent stake in Kvaerner and last week bid for an
additional 12.9 percent stake, which would make it the group's biggest
shareholder.
YUKOS has said it is considering measures to help Kvaerner through its
current financial difficulties, including purchasing its new shares, though the
Russian firm has said it will limit its stake in Kvaerner to a maximum of 40
percent.
Kvaerner is currently seeking debt refinancing and plans to issue up to two
billion Norwegian crowns ($227.9 million) in new shares in a bid to stave off
bankruptcy.
"The possible purchase of two Kvaerner units is a separate project from our
participation in Kvaerner share capital," Hugo Ericsson, head of YUKOS's
international information department, told Reuters.
YUKOS said Kvaerner's move to sell the two units was subject to the
approval of its existing board and that of a new board, to be elected at a
shareholders' meeting on November 2, when YUKOS representatives could
be added to the body.
YUKOS said its decision to purchase the two divisions was subject to a
number of conditions, including satisfactory completion of due diligence,
negotiation over documentation and the obtaining of regulatory approval.
The purchase will be executed in the second half of November and the
transfer of ownership soon after, YUKOS said.
Kvaerner Hydrocarbons provides engineering services, mainly to onshore oil
and gas projects, and employs up to 600 people, the majority located in
London.
The sale of Kvaerner Process Technology includes Kvaerner Heurtey. These
two business - engaged in research, development, and sale of process
technologies and equipment - employ some 375 people in Britain, Switzerland,
France and Italy.
These units provide YUKOS with up to $50 million in services in Western
Siberian oilfields. /Reuters/
fred |
