Аlехаndеr Меdvеdеv. `Тhе Еrа оf Сhеар Rеsоurсеs is Оvеr`Назад
Аlехаndеr Меdvеdеv. `Тhе Еrа оf Сhеар Rеsоurсеs is Оvеr`
Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee speaks on growing gas prices and European energy supply prospects.
"Die Presse" (DP): Let"s start with gas prices. What should European consumers expect?
Alexander Medvedev: It"s not us who define the price. Taxes make up 60 per cent of the price. First of all consumers should address this question to their governments. The era of cheap resources is over. Prices are constantly high due to the lack of resources, difficulties of gaining access to new fields, as well as high demand growth at the new markets. To India and China volumes mean more than prices.
DP: Is it possible to eliminate a link between gas and oil products prices?
Alexander Medvedev: Customers convince us that despite high prices they are content with such linkage because, otherwise, the price would become unpredictable.
DP: for the next decade Rosneft, Russia"s largest oil concern, considers "drilling, drilling and drilling again" to be its main strategic task. What is Gazprom"s opinion in this respect?
Alexander Medvedev: Not just drilling, but an efficient drilling. We will explore as many wells as may be required to meet the domestic and foreign demand. We have enough resources. Our investment programs are designed for a long prospective and envisage export to North America and South-Eastern Asia.
DP: However, Gazprom"s production is declining. According to some estimates as soon as by 2010 gas deficiency can make up 100 bcm. Last winter the concern experienced difficulties in supplying southern Russia.
Alexander Medvedev: I absolutely disagree. The last-year production decline was determined by the warm winter. It doesn"t make sense producing gas when nobody needs it.
DP: However, the development of new fields has been getting more capital-intensive.
Alexander Medvedev: For this reason we closely watch oil and gas prices. The European Union should be more worried about the cartel conspiracy between producers of equipment, machinery and pipes. Behind that we witness the lack of capacity.
DP: Lately, you have been declaring so many plans related to new sales markets that it begs the question: Will you be able to implement them all? Beside Europe they involve markets of North America and South-Eastern Asia.
Alexander Medvedev: The demand has been satisfied not only by Gazprom, but by oil companies and by independent gas producers as well. Their production rates has been increasing. Gazprom owns only 68 per cent of Russia"s proven gas reserves. Once we conclude a supply agreement with China or Korea, the Company will allocate the investments required to perform production, and just in four years we will launch gas deliveries. A new pricing policy will boost the domestic gas sales efficiency almost to the export rates. And the introduction of new gas prices will prompt Russian citizens to start saving energy after all.
DP: Anyway, development operations require foreign investments. Is it possible that the new law limiting investments of foreign companies into strategic industries (of the Russian economy) may impede this process?
Alexander Medvedev: Any government has a right to protect its economic interests. State-owned companies only receive a prioritized right to develop fields and after that to identify the need in foreign investors. The engagement of foreign investors should be reasonable. There is no politics here, only economy.
DP: Recently, Turkmenistan signed the Memorandum of Understanding with the European Union. Last week Mr. Miller, Gazprom"s Head failed to meet Turkmenian President. How do you appraise these events?
Alexander Medvedev: To arrange meetings is a matter of respective countries. We presume that all the agreements concluded with our company will be implemented. However, Benita Ferrero-Waldner, the European Commissioner for External Relations claimed that in Turkmenistan she had found 10 bcm of gas available for Europe. It doesn"t seem serious to me though - supplying gas implies its transmission.
DP: However, the Nabucco pipeline will be constructed for this purpose. They say that Gazprom is in a flurry.
Alexander Medvedev: Even based on the most conservative forecasts, by 2015 Europe will require a minimum of 100 bcm of additional gas. And it has no transmission routes. The Nord Stream and the South Stream will supply 85 bcm. We don"t consider Nabucco to be our competitor as we have our own market and partners, as well as the experience in constructing similar trunk lines.
DP: Gazprom"s image in Europe leaves much to be desired. The negative perception is related to the concern"s notorious interruption of gas supplies in early 2006. Can you guarantee that it will never occur again?
Alexander Medvedev: First of all, we didn"t cut off gas supplies to European consumers. Ukraine disrupted the supplies by gathering gas from export gas mains. And we suspended supplies to Ukrainians due to the absence of relevant agreements.
DP: Can you imagine what feel Europeans who fear the expansion of Russian state-owned companies?
Alexander Medvedev: Our industrial partners do not express such concerns. On the contrary, they know that we fulfill our agreements. Certain political quarters are deliberately cultivating an image of "bad Gazprom" in peoples awareness. At that, such negative image extends beyond Gazprom to include entire Russia. In my opinion, the following dilemma has arisen: which Russia is better for the global community, strong or weak. It appears to me that weak Russia harbors much more risks, while strong Russia will become an equal economic and political partner.
June 17, 2008 Die Presse
http://www.gazprom.com/eng/articles/article30441.shtml
