RusEnergy

MOSCOW, March 16 (RIA Novosti) - A law on subsoil use would improve the situation in oil production, head of the Russian Federal Energy Agency Sergei Oganesyan said. "We are a step away from having a law on subsoil use adopted. Principal criticisms have been taken into account. I guess the law will be approved. This will allow an improvement in oil production," Mr. Oganesyan told the 6th congress of the Russian oil and gas industrialists. According to him, there is a lot of talk about letting foreign investors take part in developing the subsoil. "We should wait for a law that will make everything fall into place," Mr. Oganesyan said. He noted that the current law is "inefficient," although it is necessary for both foreign and domestic investors. He said Russia has not established a mechanism to supervise the implementation of the law. It is necessary to get back to the law on oil and gas. In addition, closer attention should be paid to the projects being run in Eastern Siberia and the Far East. A deal in the merger of Gazprom and Rosneft has been made. "An arrangement has been made. Most probably, it is going to be what has been voiced by Gazprom's CEO Aleksei Miller," Mr. Oganesyan told the media off-stage, specifying that he was not "involved in the process." Industry and Energy Minister Viktor Khristenko said Monday that the joint Gazprom and Rosneft asset consolidation plan had been completed. "The plan is designed for principal procedures to be completed come June," Mr. Khristenko told the media, adding that the joint plan had been approved by the Russian Property Committee, Economy Development and Trade Ministry, Industry and Energy Ministry, Gazprom and Rosneft. Mr. Oganesyan, a member of Rosneft's board of directors, said that the board had no plans to discuss the company's 2005 financial plans Wednesday. According to him, the matter was put off until a final decision on the terms of the Gazprom and Rosneft merger has been made. On Wednesday, the board plans to approve Rosneft's 2004 dividends to the tune of 1.5 billion rubles ($1=27.49 rubbles), Mr. Oganesyan said, noting incremental changes in the energy-related cooperation between Russia and Iraq. "There are changes, but it is hard to say so far what the volume of work is going to be. The situation remains complicated," he said. "Mainly LUKOIL has been positioning itself in Iraq." Mr. Oganesyan also spoke about the results yielded by his recent trip to Saudi Arabia. The parties agreed to convene the intergovernmental legal commission to discuss their bilateral cooperation.