Russia, Oil, Diamonds, Africa - the Empire expands

There has been a lot of press talk this week about Chinese expansion in Africa but President Putin has been busy expanding Rusian, trade, investment and influence whilst Angola’s President Jose Eduardo dos Santos (President since 1979) was in Moscow last week. (So was Bill Gates)

Zarubezhneft and the Ministry of Oil of Iraq started cooperation in 1967 this initially resulted in the construction and commissioning of the largest operating oil field in the country – North Rumaila with the annual production of 42 mln. tons of oil, Luheis and Nahr-Umr (total production - 4 mln. tons of oil per year).

After the introduction of sanctions they continued with supply and service contracts under the UN Oil-for-Food Programme. Then in 1997 Zarubezhneft, LUKoil and Mashinoimport signed an exploration and production contract with Iraqi Ministry of Oil for the second stage of the West Qurna oil field under the terms of production sharing agreement.

A 1999 contract between Zarubezhneft and North Oil Company of Iraq for a drilling contract of 45 wells of depths ranging from 1500 to 2400 meters in the North part of Iraq is still in force.

Zarubezhneft and Vagit Alekperov's LUKoil (18% owned by Conoco-Philips) signed a deal to to launch prospecting operations in Angola between the lower reaches of the Congo River and the Kwanza River, and in the shelf sector.

Zarubezhneft and Alrosa the Russian Diamond monopoly also sealed a memorandum of understanding (MOU) with Angola’s state-run Sonangol (Angola’s national oil and gas exploration and production company)and The Dark Oil Company for joint prospecting, exploration and production of oil and gas deposits on-shore between the South Congo and the North Kwanza basins, in the Kassanje, Ocavango, Etosha basisns, and also in off-shore areas.

Alrosa also signed an MOU with Empresa Nacional de Diamantes de Angola - Endemia (Angola’s national diamond mining company) for cooperation in diamond exploration and development, and personnel training in the fields of scientific research and technology.

Under the MOU Endemia will be entitled to use Alrosa's exploration, mining and ore treatment technologies. Alrosa will also provide training for Angolans employed in diamond projects and other commercial joint ventures where it has interest.

Alexander Medvedev, deputy board chairman of Gazprom, said this week that initial investment in Angola may total $100 million for developing a liquified naural gas plant - if volumes justify it.