RusEnergy

01-24-2006 RBC News - The Russian ministries have agreed on the creation of a national geological exploration company to operate on Russia’s continental shelf, a source in the Russian government told RBC. The issue was discussed at President Vladimir Putin’s meeting with government ministers and representatives of Russian oil companies on 16 January 2007. The new company will incorporate the assets of Russian companies with experience in offshore operations, such as Soyuzmorgeo, Arctic Marine Engineering Geological Expeditions, Dalmorneftegeofizika, Sevmorneftegeofizika and Arktikmorneftegazrazvedka. Management of the national geological exploration company may be entrusted to Russia’s state-owned Gazprom and Rosneft. Both companies could create geological exploration subsidiaries, later to be incorporated into the national company. Alternatively, the new company might be managed by state oil company Zarubezhneft. If Gazprom and Rosneft get control of the Russian continental shelf, the implementation of these plans will take a long time, thinks Rinat Gizatulin, spokesman for the Russian Natural Resources Ministry. The reserves of the Russian continental shelf, estimated at 100 billion tonnes of conventional fuel, are expected to play a key role between 2020 and 2030.