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Japan plays pipeline odds with oilfield bid
By Upstream staff
Japan is seeking to encourage Russia to construct a pipeline to the Sea of Japan by investing in an oilfield development in eastern Siberia.
Japan and Russia are in talks about Japanese participation in the field, AFX quoted Japan's Nihon Keizai Shimbun newspaper as saying.
Russia is keen to export more of its oil and gas to Asian markets. Russia plans to build a pipeline from Taishet near Lake Baikal to Skovorodino, from which it plans to export oil to China.
Japan has been urging Russia to extend the pipeline to the Sea of Japan and has threatened not to co-operate on a pipeline to the Sea of Japan if a pipeline through China is constructed first.
Japan Oil, Gas and Metals Corporation (Jogmec) was being considered to participate in the project. The Japanese government owns a stake in the the corporation. Private companies including Sumitomo and Inpex are also keen to invest, the newspaper said.
The newspaper quoted Anatoly Yanovsky, head of Russia's Fuel and Energy Department, as saying the Russian government "is considering the participation of Jogmec in a forward-looking manner".
The newspaper, quoting a source in the Russian government, said Japan and Russia aim to reach an agreement at the G8 summit in St Petersburg next month.
Monday, 12 June, 2006, 23:16 GMT | last updated: Thursday, 29 June, 2006, 07:42 GMT
