Caspian Gas Pipeline Maneuvers Accelerate
By Inna Gaiduk
The events in Georgia have resulted in a noticeably active search for energy sources and ways to transport them bypassing Russia. Leaders of Eastern European countries have called on the European Union (EU) to end dependence on Russia for energy transport and the EU under US pressure has again started talking about the Nabucco natural gas
pipeline project. After the military actions in the Caucasus, even such partners of Moscow on the South Stream pipeline as Athens and Budapest are ready to work on competing projects. However, sources of gas for Nabucco so far remain a major question. Austrian OMV CEO Wolfgang Ruttenstorfer hopes that there will be enough gas in Azerbaijan and Turkmenistan for Nabucco. He anticipates also for deliveries from Iraq and Iran. Otherwise, he said, the pipeline plan cannot succeed. Page 1
Iranian Insider: US Sanction Moves Intensify
By Kent F. Moors, Ph.D.. Contributing Editor
As indications emerge from the International Atomic Energy Agency that Tehran may finally be mellowing its position on the nuclear impasse, Washington announces new sanctions against the Iranian banking community. The fallout guarantees a continuing volatile environment for oil and gas investment in the country. Page 12
M&A Market Activity Continues, Remains Secretive
By Elena Kirillova
Summer and early fall are traditionally “a dead season” for merger and acquisition transactions. However, some activity did take place. One of the intrigues revolved around the shareholders in the Caspian Pipeline Consortium (CPC). State shareholder Oman decided to leave the project, but Russia and Kazakhstan could not come to an agreement over which one would acquire the share. British BP may also leave the project. French interests became more noticeable in the region. Gaz de France-Suez purchased a 15 percent stake in the Yalama project on the Azerbaijani Caspian shelf. The company also wanted to join the Nabucco project, but shareholders in the pipeline rejected the attempt. Gazprom and the Iranian National Oil Co. plan to create a joint venture for development of the huge South Pars offshore gas deposit. All these transactions were with participation of large players. In addition, countries of the Caspian region exhibit very active foreign investors because many small companies in the region are ready to share assets with eligible foreigners. However, often the information on such transactions is absent. Page 16
Trapping Kazakh Oil
By Svetlana Milyaeva
As soon as Kazakh President Nursultan Nazarbayev signed into law assistance for the transport of oil from Kazakhstan to Azerbaijan across the Caspian Sea and approval for the grand Kazakhstan Caspian system of oil transport via the Eskene-Kuryk-Baku-Tbilisi, there was an explosion on the Baku-Tbilisi-Ceyhan (BTC) pipeline in eastern Turkey (August 5). Soon thereafter, Russia began military operations in South Ossetia (August 7). On August 12, BTC operator BP (UK) suspended use of the pipeline across Georgia as a precaution. On September 8, BP suspended oil transit on the Baku-Supsa pipeline. Kazakh authorities are walking a tight rope. The country’s well being is completely dependent on oil exports, but it is located in the middle of the Eurasian continent. That positioning compels Astana to maneuver between interests of Russia, the US and China in choosing transit routes. Page 23
The Anticipated Amendments to Kazakhstan’s Tax Code: Impact on the Extractive Industries
By Tomas Balco (PricewaterhouseCoopers)
Significant amendments to the Kazakhstan Tax Code prepared by the federal government have been submitted to Parliament. The purpose of this article is tosummarize the major changes likely to result from these amendments. For the sake of completeness, references will also be made to the existing tax regime. If Parliament adopts the amendments, they are expected to enter into force as of January 1, 2009. Page 28
Leading the News
Natural Gas Cartel Taking Shape But Faces Hurdles … India Moving to Improve Iranian Relations While IPI Questions Remain … PetroChina May Follow Uzbek Agreement with Foreign Acquisitions ... Page 2
Government & Economy News
Page 14
Companies & Projects News
Page 21
Transport & Infrastructure News
Page 31
Statistics
Page 33
