News Column

Moscow conference to focus on West's oil investments in Russia

June 15, 2014


Moscow: Energy chiefs and political titans gather in Moscow this week for a major conference that will highlight the West's desire to pursue oil investments in Russia despite the Ukraine crisis.

With oil prices hitting nine-month peaks on Friday owing to violence in Iraq, the 21st World Petroleum Congress, which occurs every three years, takes on even greater prominence.

Moscow, which is locked in its worst standoff with the West since the Cold War, is expected to use the week-long event to emphasise its leading presence on the world energy scene.

In Moscow, Organisation of Petroleum Exporting Countries (Opec) secretary-general Abdullah El Badri will be joined by about 5,000 delegates, including the chief executive of British energy giant BP Bob Dudley and bosses at Russia'sGazprom and Rosneft.

Russian President Vladimir Putin will make a speech today at the event that will bring public and private companies together with government agencies from 65 nations representing more than 95 per cent of the world's crude oil production and consumption.

Renewable energy

While the various scheduled conferences and round tables present classic sector issues such as obstacles to financing and competition from renewable energy sources, developments linked to current geopolitical strains look set to grab the attention of markets.

On Saturday, the Pentagon said the United States was sending its aircraft carrier the USS George H.W. Bush to the Gulf in response to the crisis in Iraq, with spokesman Rear Admiral John Kirby saying the carrier would provide "flexibility should military options be required to protect American lives, citizens and interests".

ith the Iraqi government battling to regain control of the cities taken by rebels from the Islamic State of Iraq and the Levant (ISIL) earlier in the week, Iran's President Hassan Rouhani indicated his country could consider cooperating with the US to repel the extremists.

Iraq is the second biggest oil exporter in the 12-nation Opec after kingpin Saudi Arabia, and Opec pumps about one-third of the world's oil. In Kiev, meanwhile, an urgent round of EU-brokered gas talks between Russia and Ukraine ended Saturday night without an agreement.

Gas giant Gazprom has said Kiev has until 0600 GMT today to pay the Russian state firm $1.95 billion or face a gas cutoff.

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Source: Times of Oman

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