Bloomberg (USA): "Russia Puts Libya Energy Plans on Hold, Seeks “Fair“ Oil Price"
Russia, the world's largest oil producer, is concerned that unrest in Libya has driven crude prices beyond fair market levels, endangering the global economy, said Prime Minister Vladimir Putin .
Russia is putting projects in the North African country on hold, Putin told reporters in Brussels today. State-controlled OAO Gazprom Neft agreed last week to buy half of Eni SpA's stake in the Elephant oil project.
Oil climbed to the highest in 30 months in London today, touching $119.79 a barrel, as an uprising in Libya has reduced supplies from Africa's third largest producer and raises concerns the violence may spread to other oil producing nations in the region.
"This is a serious a threat to the development of the global economy and that isn't in Russia's interests," Putin said. "We want a fair price."
Gazprom Neft's parent company, state-run gas exporter OAO Gazprom, is working in Libya with Wintershall, which halted oil and gas production as a revolt spreads to topple the regime of Muammar Qaddafi. OAO Tatneft, based in Russia's Tatarstan region, is evacuating staff from its Libyan exploration sites.
"We'll see how the difficult processes end and make a decision based on that," Putin said.
Saudi Arabia and other nations in the Organization of Petroleum Exporting Countries are willing to replace any lost Libyan oil as soon as companies ask for it, a Saudi Arabian oil official said today.
Libya, an OPEC member, pumps about 1.6 million barrels of oil a day, exporting most of its crude and fuel across the Mediterranean to Europe, according to Bloomberg estimates.
Russia, which is not a member of OPEC, cannot do anything to move prices, Putin said in Brussels today. Putin pledged that Russia would keep contact with Europe in an attempt to avoid negative economic trends. The country is ready to boost natural gas supplies to the European Union if necessary, Energy Minister Sergei Shmatko said.
By Ilya Arkhipov and Stephen Bierman
