Energy Blast - June 29, 2009

Gazprom head Alexei Miller has said that situation in Ukraine must be dealt with through 'systemic efforts and policies'.  He has also asserted that January's gas cut-off was an 'anomaly' and a situation to be avoided.  The CEO added that Europe's plans to diversify energy supplies away from Russia will not necessarily ensure greater energy security.  Gazprom has said it plans to use the South Stream pipeline to transport 35% of its gas exports to Europe by 2015, threatening the role of Ukraine, who now handles most gas transit.  Despite Sakhalin-2 holding bad memories for Shell, the company has welcomed Vladimir Putin's hopes for its participation in the Sakhalin-3 and Sakhalin-4 projects. Russia's precarious financial situation is seen by the Telegraph as the motivation for the surprise invitation.  Putin has pledged to maintain Belarus' preferential rate for crude and gas imports and will offer a $9 billion loan for a nuclear plant.   Apparently the EU and Turkey are approaching an agreement on the Nabucco pipeline.  Structures close to Gazprom Neft have taken over 50% of Bennfield, the company that represents the main owners of Sibir Energy.