The International Energy Agency forecasts that global demand for oil will decrease by 2.4 million barrels a day this year. A contract allowing Russian oil giants such as Lukoil to revive pre-war contracts in Iraq has been agreed. Despite Sergei Lavrov's insistence that the pipeline problem was technical, not diplomatic, the dispute between Turkmenistan and Gazprom continues, with Turkmenistan claiming that 'a unilateral and egregious violation' of agreements by Gazprom Export caused the blast. Turkmenistan's call of an international tender to build a pipeline may have also damaged relations with Gazprom. Failure to import the agreed amount of gas may result in Gazprom seeking $530 million in fines from Ukraine. French power company GDF Suez is negotiating with Gazprom to acquire a stake in the Nord Stream pipeline. Gail India Ltd. intends to construct a methanol manufacturing plant in Russia with Itera Oil & Gas Co., says Bloomberg. TNK-BP is interested in buying Sibir Energy for $3.38 billion, according to Ria Novosti. It is reported on Reuters that Moscow Deputy Mayor, Vladimir Silkin, says that the city will not sell its 18% in Sibir to the Russian-British company.
Energy Blast - April 13, 2009
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Gazprom holds a 51 per cent stake in Nord Streag AG. BASF/Wintershall and E.ON Ruhrgas hold 20 per cent each. Gasunie has a 9 per cent share.
If the French utility GDF Suez will participate in the Nord Stream gas pipeline project then they either have to purchase shares from Gazprom that thus would step down as majority shareholder, or they have to purchase shares from the other companies.
I anticipate that Gazprom is running out of long term capital despite their recent raising of 500 million Swiss francs in bonds that most probably only was Russian capital tunneled through Western banks. They are now planning a $2 billion bond issue with a coupon of between 9.25 percent and 9.5 percent. This will as well succeed as the Russian government will use this stint to inject money in its foreign arm - Gazprom.
However, the recession will in a couple of months take its toll..