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Gazprom, Rosneft to hold talks on Sakhalin-1 project

Gazprom and state-owned oil company Rosneft will hold talks Monday on gas transportation from the Sakhalin-1 field in Russia's Far East, the energy giant's chief executive said Friday.

"A meeting with Rosneft is scheduled for Monday," Alexei Miller told journalists. He added that Rosneft had not made any specific proposals so far.

Asked whether Gazprom would agree to only transport gas or whether it wanted more, Miller said: "We would like more. We have very ambitious plans."

The Sakhalin-1 project involves development of the Chaivo, Odoptu and Arkutun-Dagi deposits on the northeastern shelf of Sakhalin Island. The deposits have recoverable reserves of some 307 million tons of oil and 485 billion cu m of natural gas.

Capital investment in the development of Sakhalin-1 deposits is assessed at over $12 billion. Exxon Neftegas Limited (30%), Rosneft (20%), India's ONGC (20%) and Japan's Sodeco (30%) are involved in the project.

Miller also said Gazprom was holding talks to swap assets in the oil sphere with Italy's Eni, having agreed to develop partnership in the oil and gas sphere at a meeting June 20.

Italy's natural gas market is the third largest in Europe, following the U.K. and Germany. The share of gas in Italy's energy balance exceeds 30%. Italy covered some 86% of its natural gas needs last year due to imports. Algeria and Russia are the main gas suppliers to the country.

Italy is Europe's second largest importer of Russian gas, and Gazprom supplies gas to it under five long-term contracts. In 2005, it supplied 21.9 billion cu m of gas to the southern European country.

In 1998, Gazprom and Eni signed an agreement on strategic cooperation. The companies are involved in the Blue Stream project, a trunk pipeline for direct deliveries of Russian gas to Turkey across the floor of the Black Sea.

To ensure financing, construction and operation of the gas pipeline, Gazprom and Eni established the Blue Stream Pipeline Company joint venture. In 2003, the Blue Stream was commissioned, and in 2005 Turkey received 5 billion cu m of gas via this pipeline.
© RIA Novosti

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