Russia to Renew Work on Pipeline Through Korean Peninsula

North Korea has agreed to the creation of a tripartite commission with South Korea and Russia that would allow for shipment of gas through the Korean peninsula.  After a recent summit in Siberia, President Medvedev said that he and Kim Jong-il had agreed to bring North and South Korea together to move the pipeline project forward.  "We achieved certain results on gas cooperation.  In particular, a decision has been taken to create a special commission for gas transit to the Republic of Korea via the territory of DPRK."  The pipeline agreement could lead to 1100 km of pipeline constructed along the Korean peninsula, with 700 km of the pipeline traveling through North Korea.  An earlier deal on joint gas supply between South Korea's Kogaz and Gazprom stalled in 2009 due to poor relations between North and South Korea.

http://rt.com/business/news/russia-gas-suplly-korea-031/

Chevron Quits Offshore Project with Rosneft - Total Wants In

Last summer, American-based Chevron signed a deal to join Russia's Rosneft in a $32-billion Black Sea oil exploration project (at the Val Shatskogo deposit).  Chevron has since pulled out of the project. According to Rosneft spokesman, Eduard Khudainatov, geologists for Chevron and Rosneft differed in their evaluations of the Val Shatskogo deposit.  The companies also clashed over the choice of project contractors, the domicile of the joint venture, and arbitration jurisdiction in the event of a dispute.  At an industry gathering on Friday, Khudainatov announced that French oil producer, Total, has offered to replace Chevron as Rosneft's partner in the project.  Khudainatov stated that Rosneft would evaluate Total's offer and would decide on its oil exploration partners by the end of the year.

http://www.reuters.com/article/2011/07/08/rosneft-total-idUSLDE76719H20110708

Russia Begins Oil Shipments to China via East Siberian-Pacific Ocean Pipeline

On January 1st, Russia began shipments of crude oil to China via an East Siberian-Pacific Ocean (ESPO) pipeline.  According to Igor Dyomin, a spokesman for Russian oil monopoly Transneft, "[w]e plan to pump 1.3 million tons of oil [to China] in January."  Crude oil market participants expect the ESPO pipeline to double Russia's oil sales to China, which had totaled 12.8 million tons for the first ten months of 2010.  At a cost of $25 billion, the ESPO pipeline is the largest infrastructure project in post-Soviet Russia.  Its second stage is expected to be complete in 2013, and at 4,070 km, the ESPO pipeline will be the world's longest.

http://www.themoscowtimes.com/business/article/russia-china-open-milestone-pipeline/428061.html