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To: richardred who wrote (913)	3/23/2007 12:26:58 PM
From: richardred	Read Replies (1) \| Respond to of 3363

BP Executives Meet With Putin in Russia Friday March 23, 11:46 am ET By Alex Nicholson, AP Business Writer BP Executives Meet With Vladimir Putin As Company Prepares to Take Part in Yukos Asset Auction MOSCOW (AP) -- Executives from BP PLC met with President Vladimir Putin on Friday as the company prepared to take part in the auction of assets from the bankrupt Yukos oil producer and tried to end a deadlock over the future of its giant Siberian gas field. Putin, BP's outgoing Chief Executive John Browne and his successor Tony Hayward discussed the possibility of Russian energy companies cooperating with BP in countries outside Russia, as well as "various questions connected with the company's activities in Russia," Kremlin spokesman Dmitry Peskov said. He gave no precise details. Putin noted the successes of BP's Russian joint venture, TNK-BP, Peskov said. "The company is developing actively in Russia, where its reserves, production levels and profit are growing," Peskov quoted him as saying. Market watchers are focused on TNK-BP's projects in Russia, as the Kremlin moves to take a dominant role in the country's oil and gas industry -- a campaign that included the partial nationalization of Yukos after a politically charged back tax campaign. TNK-BP spokeswoman Peter Henshaw said the company would be bidding in Tuesday's bankruptcy auction of Yukos' 9.44 percent stake in state controlled oil company OAO Rosneft. Yukos is due to be liquidated in a series of auctions starting with Tuesday's sale. The possible acquisition would "enhance our existing strategic relations and progress our joint projects," with Rosneft, he said. Rosneft, which until TNK-BP's announcement had been the only company so far to have confirmed that it will bid, is widely expected to win Tuesday's sale and dominate subsequent auctions. The company is already the owner of Yukos' biggest production unit, purchased after a disputed auction in 2004 that was the climax of the back tax investigation. Analysts said it was unclear what TNK-BP might hope to achieve by competing against Rosneft for the shares. The two companies are cooperating in projects off Russia's Pacific coast and BP spent US$1 billion (euro750 million) at Rosneft's summer IPO to become the owner of 1.4 percent of the company -- an investment analysts said was a show of support and aimed at securing future joint projects. Some analysts have suggested that by applying to bid, BP is simply ensuring that the auction has sufficient participants to go ahead. Others speculated that, were TNK-BP to win the bidding, the acquisition would be part of a complex deal that would see Rosneft replace BP's partners at TNK-BP -- a group of Russian and U.S. billionaires who hold 50 percent in the company. All that was certain about TNK-BP's role in the auction was that it had been cleared at the highest level, UBS analyst Kakha Kiknevalidze said. Browne and Hayward met with Rosneft President Sergei Bogdanchikov before seeing Putin and discussed mutual action between shareholders, the Interfax news agency said. TNK-BP is also seeking to reach a deal with state-controlled gas giant OAO Gazprom to export gas to China from its giant Kovykta field in Siberia, where it is under pressure from prosecutors and environmental agencies. Officials charge TNK-BP is underproducing and warn its license could be revoked. Analysts expect exports from Kovykta to go ahead only when Gazprom takes a controlling interest in that project. biz.yahoo.com

To: richardred who wrote (913)	9/3/2007 9:22:45 PM
From: richardred	Respond to of 3363

Companies to Form Global Energy Giant Monday September 3, 5:07 pm ET By Emma Vandore, Associated Press Writer Suez, Gaz de France Plan to Form Global Energy Giant to Try to Compete Against Gazprom PARIS (AP) -- Suez SA and state-owned Gaz de France plan to form a global energy giant that they say will be better placed to compete against players such as Russia's OAO Gazprom. The outlines of the new company, to be called GDF Suez after the deal is expected to be completed in 2008, was approved by Suez and GDF boards late Sunday after active brokering by President Nicolas Sarkozy. With a combined market value of $123.3 billion and revenue of $98.7 billion, it will be one of the top three listed utilities worldwide, Gaz de France and Suez said Monday in a joint statement. The deal includes a spin-off of Suez' environment activities which have North American water interests, and would leave the French state as the new company's largest shareholder with a 35 percent stake. GDF Suez "will play an essential role in the consolidation of the energy market in Europe," Suez CEO Gerard Mestrallet, who will head the new group, said in joint news conference Monday. Gaz de France Chief Executive Jean-Francois Cirelli, who will become the new company's No. 2, spoke about "strong growth prospects" of the group, to be based in Paris. The deal gives France a second global player in the politically sensitive energy market, along with Electricite de France, Europe's largest power generator. It comes at a time when Europe is seeking to lessen its dependence on Russian gas and protect energy security. The new company will be the second-largest electricity producer in France, and the largest gas importer and buyer in Europe, they say. Jostling for a bigger share of the world's oil and gas resources is increasing as energy prices soar. Research by investment bank Goldman Sachs suggests four countries -- Brazil, Russia, India and China, or the so-called BRIC countries -- are grabbing the most market share. The BRIC's share of the industry's market value has grown from virtually nothing 15 years ago to more than one-third today. Moscow sent alarm bells ringing across Europe in 2006 when it cut off gas supplies to Ukraine in a price war, curtailing supplies to the European Union that were only reinstated after pressure from western Europe. The French Finance Ministry noted in a statement that the deal "will boost the energy supply security, notably in gas, of France and furthermore of Europe." Mestrallet will be chairman and chief executive of the new entity, while Cirelli will become vice chairman and president. The board will be composed of around 20 members, balanced between both companies, Mestrallet said. Cirelli said representatives of the French state will occupy one-third of the seats on GDF Suez's board. The new company will seek to grow its businesses outside of Europe, particularly in fast-growing markets, Mestrallet said. GDF Suez will enjoy synergies of at least 1 billion euros ($1.37 billion) per year by 2013. The new entity will have an EBITDA -- or earnings before interest taxes, depreciation and amortization -- of more than 11 billion euros ($15 billion), Mestrallet said. With 35 percent of the combined entity, the French government will be the largest shareholder. Prime Minister Francois Fillon hailed the deal and said the state would "keep control" of the new group. After earlier casting doubt on the combination, President Nicolas Sarkozy gave it new life last week. The project has been mired in political, legal and financial problems since it was arranged by the previous government 18 months ago. Sarkozy had said as finance minister in 2004 not to privatize GDF. The government will reduce its stake from 79.8 percent. French unions oppose the deal -- both the original and updated versions -- because it requires privatizing GDF. Shareholders of both companies must approve the deal, and GDF and Suez said they had support from the major shareholders of both groups. European Union competition authorities -- who gave the green light to the original deal -- will also be consulted on changes from the 2006 plans -- as will the labor unions. Critics outside France call the merger protectionist, since it was originally designed to fend off a hostile bid for Suez from Italy's Enel SpA. As part of the deal, Suez will spin off its environment activities in an initial public offering. Around 65 percent of Suez Environment -- a major player in North American and other global water and waste markets -- will be returned to Suez shareholders, allowing Suez and GDF to merge on the basis of a share exchange ratio of 21 GDF shares for 22 Suez shares. After the deal, GDF Suez will hold 35 percent of Suez Environment, with another 12 percent held by a coalition of shareholders including banking giant Credit Agricole and state-run nuclear manufacturer Areva. In the original deal, Suez agreed to be acquired by GDF in a one-for-one stock swap, including a 1 euro ($1.36) special cash dividend paid to Suez holders if the deal went through. Since then, Suez' share value has risen steadily, turning shareholders off the merger. Shares in GDF slipped 2.7 percent, while Suez shares lost 3.3 percent after initially rising on Monday. biz.yahoo.com