UKRAINE UPGRADING: $19.5 BLN
From Sergey Kupriyanov.
Sir, In "South Stream gas project may now be a pipe dream" (August 25), Guy Chazan paints a bleak picture of the South Stream project, suggesting its future is "murky". I disagree.
We have decided on a multibillion-dollar investment in one of the world's biggest energy infrastructure projects, together with several European partners. This decision was based on a rigorous economic and commercial evaluation, and we are determined to implement the project as planned.
Mr Chazan rightly points out that South Stream was designed to put an end to the over-reliance on the Ukrainian gas transit system. Countries in south-eastern Europe probably have at least as many reasons as Gazprom to be "desperate" to reduce transit risks.
Contrary to northern EU member states, which benefit from increased security of supply via Nord Stream, south-eastern European countries still don't have an alternative gas supply route. The cost of upgrading the Ukrainian transit system is estimated to be as much as $19.5bn, and this will still not eliminate the transit risk.
South Stream will do this – and at lower cost. South Stream enjoys the commercial backing of leading European companies and the support of participating countries, which have welcomed an alternative route and a source of investment in crisis-ridden economies. All of this points to a sound business rationale behind the pipeline.
Yet the European Commission is trying to delay the project on the basis of strictly political considerations. So far, the EU seems ready to shoot itself in the foot by blocking a project that will increase its energy security and help Europe satisfy increasing energy import needs, at no cost to European taxpayers. However, I hope that the commercial logic Mr Chazan refers to will prevail.
Sergey Kupriyanov, Spokesman, OAO Gazprom, Moscow, Russia
|December, 15, 13:20:00|
|December, 15, 13:15:00|
|December, 15, 13:10:00|
|December, 15, 13:05:00|
|December, 15, 13:00:00|
|December, 15, 12:55:00|
LUKOIL - The plan is based on the conservative $50 per barrel oil price scenario. Sustainable hydrocarbon production growth is planned in the Upstream business segment along with the growth in the share of high-margin projects in the overall production. In the Downstream business segment, the focus is on the improvement of operating efficiency and selective investment projects targeted at the enhancement of product slate.
BP - BP will acquire on completion a 43% equity share in Lightsource for a total consideration of $200 million, paid over three years. The great majority of this investment will fund Lightsource’s worldwide growth pipeline. The company will be renamed Lightsource BP and BP will have two seats on the board of directors.
REUTERS - Brent crude was up 69 cents, or 1.1 percent, at $64.03 a barrel by 0743 GMT. It had settled down $1.35, or 2.1 percent, on Tuesday on a wave of profit-taking after news of a key North Sea pipeline shutdown helped send the global benchmark above $65 for the first time since mid-2015. U.S. West Texas Intermediate crude was up 45 cents, or 0.8 percent, at $57.59 a barrel.
ROSATOM - On December 10, 2017, the construction start ceremony took place at the Akkuyu NPP site under a limited construction licence issued by the Turkish Atomic Energy Agency (TAEK). Director General of the ROSATOM Alexey Likhachev, and First Deputy Minister of Energy and Mineral Resources of the Turkish Republic, Fatih Donmez, took part in the ceremony.