  |
|
Russian energy giants sign vast partnership deal
By Dario Thuburn
AFP
MOSCOW
Petroleumworld.com 11 29 06Russian state-controlled energy giants Gazprom and Rosneft signed a massive partnership deal Tuesday that aligns two bitter rivals and could squeeze foreign firms out of the Russian energy market.
The heads of the two companies "signed an agreement on strategic cooperation" for joint work in oil, gas and electricity production, as well as combined bids on energy contracts, the statement said.
Gazprom, one of the largest energy companies in the world, has a monopoly over Russia's vast natural gas extraction and transport network. Rosneft is Russia's second largest oil producer.
The two companies, both of which are controlled by powerful Kremlin officials, have risen in influence in recent years because of high global energy prices.
Gazprom and Rosneft have engaged in fierce competition for energy projects, seen as reflecting a battle for power between Kremlin factions, and a proposal to merge the two was scrapped last year.
"Two state companies working together on some... major energy projects, rather than competing with each other, makes a great deal more sense," said Chris Weafer, senior analyst at Alfa Bank.
"But it also means that it is unlikely there will be a significant participation by an international energy company in these projects... There'll be less influence of international energy companies," he added.
The main aim of the partnership agreement announced on Tuesday was to avoid "confrontation" between Gazprom and Rosneft, said Andrei Gromadin, an oil and gas analyst at MDM bank.
The state wanted "that the two giant not compete any more both on the external and internal market", and the agreement could encourage "joint foreign purchases" by lowering operational risks, Gromadin said.
The statement said the deal, signed by Gazprom chief executive officer Alexei Miller and Rosneft CEO Sergei Bogdanchikov, would remain place until 2015, after which it could be renewed in five-year periods.
The chairman of the board at Gazprom is Russian Deputy Prime Minister Dmitry Medvedev and and the chairman of Rosneft is Igor Sechin, deputy head of the presidential administration.
The deal also foresees cooperation between the two firms in gas production in far eastern Russia -- a region seen as vital to Russia's ambitions to become a major energy exporter to booming Asian economies.
Under the agreement, Rosneft has also agreed to sell gas to Gazprom from its fields in western Siberia and the two companies added that they will make joint bids for contracts on a 50-50 basis.
The purchase of gas in western Siberia could enable Gazprom to ensure steady export supplies to Europe, amid fears that ageing infrastructure and slow development of new supplies could hamper production levels, analysts said.
The deal follows an announcement earlier this month that Gazprom and Lukoil, Russia's biggest oil producer and a privately-owned firm, would form a joint venture to acquire new assets in Russia and abroad.
Ultimately "we are likely to see some sort of super energy holding structure," but not a merger, bringing together the Russian state's stakes in oil, gas and electricity firms, Weafer said.
"They have ownership, they have individual control. Now they're getting on with the business and working together," Weafer said in reference to the Kremlin factions behind Rosneft and Gazprom.
AFP 28 1646 GMT 11 06
Copyright© 2001 AFP. All Rights Reserved.
Your
feedback is important to us!
We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com
Any
question or suggestions, please write to:
editor@petroleumworld.com
Best
Viewed with IE
5.01+
Windows
NT 4.0, '95, '98 and ME +/ 800x600 pixels