Russia seeks Japan's Siberia oil, gas investment

Russian Minister of Industry and Energy Viktor Khristenko said his country would like Japanese investment in the development of East Siberian crude and gas reserves as part of the ESPO oil pipeline project.

Feb. 26, 2007

2 min read

Eric Watkins
Senior Correspondent

LOS ANGELES, Feb 26 -- Russian Minister of Industry and Energy Viktor Khristenko said his country would like Japanese investment in the development of East Siberian crude and gas reserves as part of the East Siberia-Pacific Ocean (ESPO) oil pipeline project.

Meeting with Japanese Foreign Minister Taro Aso to discuss energy cooperation issues, Khristenko said the Japanese market fits in with Russia's strategy in the East, and Russia is interested in foreign investors.

"Supplementary exploration makes us realize that we can open new deposits, which will provide for the construction of the second stage [of the ESPO]," Khristenko said, adding that Russia has approved a program of auctions for areas in East Siberia.

Officials of both countries discussed possible Japanese investment in East Siberia, but did not reach any agreement. "Both sides stressed that Japan has an interest, while Russia offers enough attractive proposals for investors to come there," said Vladimir Salamatov, director of the Russian ministry's department for investment and innovation policy.

The first stage of the ESPO is planned to link Taishet, in the Eastern Siberian region of Irkutsk, to Skovorodino, on Russia's border with China. Assuming sufficient quantities of crude oil, the second stage would extend from Skovorodino to Kozmino, near Nakhodkha, on Russia's Pacific Coast.

Contact Eric Watkins at [email protected].