Let the games begin

Let the game of negotiations begin.

The headlines.........................................................................

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=google&guid=%7B9770DA93-9B58-440A-B952-5EC404FB11A2%7D&keyword=


Gazprom says no decision on Shtokman partners until May

Last Update: 9:07 AM ET Apr 24, 2006

MOSCOW (MarketWatch) -- Russian natural gas monopoly OAO Gazprom (GSPBEX.RS) said Monday it had postponed the deadline for choosing partners to develop the massive offshore Shtokman gas field until May.

Gazprom had earlier said it planned to announce two to three partners by the end of April.
Gazprom has shortlisted five companies as potential partners: ConocoPhillips (COP), Chevron Corp. (CVX), Norsk Hydro ASA (NHY), Statoil ASA (STO) and Total SA (TOT) for the project.

The head of Gazprom's export division, Alexander Medvedev, said the choice had been postponed until April, a company spokesman said.

The spokesman said he couldn't immediately explain the delay.

Shtokman holds an estimated 3.6 trillion cubic meters of gas, and Gazprom plans to use the field to export Liquified Natural Gas, or LNG, to North America by tanker.{emphasis added}


Then you have Ms. Rice getting in on the play.

http://news.ft.com/cms/s/eeac8c08-d3b1-11da-b2f3-0000779e2340.html

The headlines......................................................................

Rice to pressure Greece to reject Gazprom proposal

Ms Rice is likely to suggest that Greece and Turkey make a long-term deal to buy Azerbaijan gas supplied by an international consortium led by BP and Norway’s Statoil, which is due to come onstream in 2007.

There is talk that Russia is going to cut taxes by 50% on declining oil wells. Why?

The answer is obvious. And what is Alaska doing? Raising rates. The delay, well that is obvious.

Russia is waiting to see what is negotiated here.

When you compare the import tariffs on gas and oil versus the tariffs and taxes that will be assessed on the natural gas pipeline through Canada, the profits at the well head will be higher than the exported LNG from Russia and other foreign companies.

The profit margin will be greater for companies abroad.

The State of Alaska is in a position to renegotiate the royalties with the federal government. And should.

Increase the percentage of the royalty to what it should have been and use a part of the increase to fund education, which is a sizable portion of the State of Alaska budget. But of course it should be done under a decentralized system.

That way when people in Anchorage fear politicians spending the money, the fear is diminished by the fact that the parents, teachers and school principal are in control as is done in Edmonton.