Poland may prolong its gas contract with Russia until 2035, the prime minister's energy adviser was quoted as saying today.

The cost of developing Kazakhstan's huge Kashagan oilfield will be cut by at least $1 billion as the global crisis drives down machinery prices, Kazakh Energy Minister Sauat Mynbayev said today.

Russian oil output edged up in June while natural gas production continued its steepest decline in a decade because of low demand in Russia and Europe, energy ministry data showed today.

The AgipKCO consortium, which is developing Kashagan, said today that the global economic crisis may help reduce some of the costs associated with developing the Caspian Sea field.

Ukrainian state energy company Naftogaz has hired a consultant to assess whether the gas transit rate charged to Moscow is fair, despite criticism by Ukraine's president that it was too low.

Russia has offered Turkey a role in its South Stream gas pipeline to Europe, Russian news agencies reported yesterday, marking another Russian attempt to undermine the European Union's rival Nabucco project.

China secured access to vast oil deposits in western Kazakhstan today after the energy-rich Central Asian nation said it had completed the expansion of a major oil pipeline to its eastern neighbour.

Poland hopes to sign an agreement with Russia's Gazprom by the end of August to increase gas supplies by 2 billion to 3 billion cubic metres from 2010, a PGNiG official said today.

Russian energy giant Gazprom has inadvertently walked into an online racism debate with the announcement of its new joint venture in Nigeria - Nigaz.

Russia's Gazprom plans to issue a$1.5 billion of Eurobonds and will use part of the proceeds to finance the acquisition by its oil arm, Gazprom Neft, of Sibir Energy, according to reports.

Kazakh oil producer Zhaikmunai said today it was in talks with lenders about possible waivers on its debt covenants after "various events of default" led to a $100 million credit line being cut off.

The club of major gas producers fretted over sagging demand and prices at talks today, but the loose grouping is far from having the power and collective will to do anything to tighten the market.

Europe may face further disruptions to its gas supply next winter if Ukraine cannot pay its gas debts to Russia, the head of Gazprom International said today.

French energy giant GDF Suez said today that it had acquired a 20% stake in energy exploration and production in Azerbaijan as part of its strategy to expand its existing and probable oil reserves.

Russian state-run Gazprom Neft now holds a little more than 74% of London-listed Sibir Energy, according to a Sibir release.

Russian gas giant Gazprom signed a gas supply deal with Azerbaijan today, though the terms of the agreement remain unclear, according to reports.

Europe's gas supplies are under near constant threat of disruption despite a new contract between Russian gas exporter Gazprom and Ukraine's Naftogaz, International Energy Agency (IEA) boss Nobuo Tanaka said today.

Russian Prime Minister Vladimir Putin moved again to ease his government's clasp over the energy sector at the week-end, capping off a week of foreign energy deals with a surprise offer for Anglo-Dutch supermajor Shell.

Russian Prime Minister Vladimir Putin today told state banks to boost the economy with up to $16 billion of fresh loans, as the country's second biggest lender complained of a three-fold rise in bad debts.

Turkish and European Union officials said today they were optimistic agreement could be reached soon on bringing Turkey into the planned Nabucco gas pipeline project.

Belarus is to start paying arrears for Russian gas shipments next month and complete the process by the end of the year, First Deputy Prime Minister Vladimir Semashko said today.

Russia's Sakhalin-2 consortium has extended maintenance at one of its two liquefied natural gas trains by one month, a spokesman for the group involving Gazprom and Shell said today.

Russia's Prime Minister Vladimir Putin will meet Shell chief executive Jeroen van der Veer tomorrow to discuss possibilities for the company's expansion in Russia, Putin's spokesman said today.

Turkmenistan, Central Asia's largest gas producer, said today it discovered new gas reserves at an old field by deep drilling.