Chevron CEO David O’Reilly is going to St. Petersburg willing to listen to what Transneft will want to offer on the Caspian Pipeline project.
Photo: Alexey Kudenko
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Transneft to Offer Chevron Alliance against ExxonMobil
Transneft’s Semen Vainshtok and Chevron’s David O’Reilly are meeting in St. Petersburg on Saturday to discuss the Caspian Pipeline Consortium (CPC) where both companies have large stakes. Chevron and ExxonMobil, largest private shareholders in the consortium, reportedly do not see eye-to-eye on a suggestion to boost the pipeline’s capacity. However, the decision may go through in case Transneft is successful in winning over Chevron.
Transneft President Semen Vainshtok and Chevron CEO David O’Reilly are to discuss the Caspian Pipeline Consortium, at the upcoming St. Petersburg International Forum, a Kommersant source reported Thursday.
Semen Vainshtok is going to suggest boosting the pipeline’s capacity, a project where Transneft holds 24 percent and Chevron owns 15 percent. The Russian firm wants to double pumping from an annual 37 million tons of oil to 60 million and half interest rates for loans from individual shareholders to the consortium to 6 percent per annum. The moves should cut CPC’s debt which already exceeds $5 billion.
Transneft may be successful in pushing forward its position in the consortium as the CPC’s shareholders reportedly disagree on the company’s future after the state-owned firm joined the project.
Kommersant sources confirmed on Thursday that Exxon Mobil (with 7.5 percent in the project) is pressing for a strategy to advantage private investors at the most while Chevron is willing to compromise. Chevron tends to support Kazakhstan, which holds 19 percent, in votes at the CPC. Should Transneft win over Chevron in Saturday talks, the state-run firm may hope to secure 58 percent of the vote at any shareholders’ meeting. The next meeting is slated for July 3, and the agenda has not been set yet. Transneft may come up a new strategy then if it finds a way with Chevron, Kommersant sources say.
www.kommersant.com
All the Article in Russian as of June 08, 2007
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