VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Transcript of the beginning of the meeting:
Vladimir Putin: Mr Margerie,
Colleagues,
I am pleased to see you. Good afternoon to all of you!
We have developed a very good relationship with the French oil company Total. I have known Mr Margerie personally for a long time. I am not only happy to see you again, but pleased to remark that the energy cooperation between Russian and French companies has been expanding positively.
Russian-French relations are developing at a good pace in general - our bilateral trade turnover reached $22 billion last year.
In energy, we have long-established, ongoing contacts, and the volume of cooperation is high. Suffice it to say that your company is participating in the Shtokman field development, one of the largest European gas projects.
I also know that you have a proposal on expanding the cooperation even further, that is, to continue working in the project also beyond its current stage. This is quite possible. We are ready to consider your proposal.
You are continuing to work successfully on the Kharyaga oil project, and are planning to develop a gas and gas condensate deposit in Yamal jointly with Russia's Novatek. This is also a large and promising project worth, as I understand, around 1 billion dollars in investment - 900 million plus 20 million or so.
This is a thawed deposit, a very promising one. The development areas can be extended there later. It is big enough now, so we all understand that further expansion could land this project on the list of strategic national deposits. But, as we have said on multiple occasions, we allow foreign partners to participate in such developments. For this, you will have to wait for a decision made by a special government commission. But if you join the project at this point, and keep investing in it, we will certainly take this into consideration when making the decision.
Christophe de Margerie (as translated): Thank you very much. Mr Prime Minister, it is a pleasure for me to be here with you today. I remember very well our first meeting in 1999 in Paris. You advised me then to work closer with Russian companies.
Last year, I was fortunate to participate in a ceremonial dinner in Sochi, where you addressed the whole European community with an open welcome. There was one other company at that reception - I would not like to name it right now. The company's head said, "Well, thank you Mr Prime Minister, but it is too difficult to work in Russia." And your answer came fast: "That's why we need you."
I personally do not find working in Russia difficult. What's needed is to learn - to learn how to work effectively with Gazprom, with our friends from Novatek, and with Rosneft.
Incidentally, we recently signed an agreement with LUKoil. It is a joint project on an oil refinery in the Netherlands. A lot of agreements and contracts were signed in connection with this project. But on both sides we see it as an expression of each side's willingness to develop our long-term strategic cooperation.
I would like to thank you for the support you have given Total. It is very important for us that those companies we are working with have government support. I have, in my time, promised you that we will neither change our minds, nor our arrangements, if gas prices fall. If we have decided to invest, then we will do so with a long-term perspective.
Today, we can take pride in the fact that my friend Leonid (Leonid Mikhelson, chairman of the board of directors of Novatek) and I are here in your office. He and I began our efforts to develop joint cooperation quite some time ago. He is a terrifying man to negotiate with.
Vladimir Putin: You have just complimented him.
Christophe de Margerie: Indeed. If that hadn't been the case, then we wouldn't be here today. But on our side it is another indication that we are ready to participate in such important undertakings.
Gas is the future. Russia has a presence practically everywhere. And I believe this to be good. That's why you will see us constantly: on the Shtokman project, on the new phases of the Shtokman project if it is desired, and on the project on which we have been allowed to cooperate with Novatek.
Today the press jumped the gun a little; they did this when they announced our interest in participating in the new liquefied natural gas project on the Yamal Peninsula. Indeed, we are very interested in it, and Alexei Miller and I have already held preliminary negotiations on this matter.
We are aware that no decision has been taken regarding that project. Although this day is devoted to Novatek, I will use the opportunity to say that we have great interest in that matter. We would very much like to add one more project to those that we already have in Russia.
We are ready to invest even more into Russia's economy, in partnership with Russian companies, the Russian Government and in possible conjunction with other countries.
Vladimir Putin: As for this specific project, I have already said that it is promising work, all the more so since Novatek has its own refining capacity. And of course, the very fact that we are meeting indicates that we will support such projects.
Work on Shtokman is going according to schedule. As for the fall in hydrocarbon prices, the price for gas, this does not perturb us. Firstly, today they are sufficiently high, and secondly, this is a normal occurrence, given the conditions of the global financial and economic crisis. If today they stay at such a level, I mean, first and foremost, oil prices, with gas prices following suit, then we can expect them to be higher in the future.
Today we are thinking about diversifying our supplies. On this issue, I have instructed Gazprom and the Ministry of Energy to develop plans to increase gas liquefaction capacity. This will enable us not only to diversify the markets and supply opportunities, but it will also have a positive impact on the development of shipbuilding, and several other sectors of the real economy.
This is a major, significant programme that we are currently working on. I am saying these words to you as your company holds a high standard of expertise, and extensive experience in building gas liquefaction plants and facilities. Let us consider the work on Shtokman as only the first step of our cooperation in this area.
Next year will be declared the Year of France in Russia and Year of Russia in France. I hope that business representatives, both French and Russian, will actively participate in it.
