Russia has some 180 small oil-producing companies and just four or five large producers, Mr. Khristenko said. Given the fact, "it's not quite right to say that a threat is being created for small companies, on the part of large ones," he pointed out. "A company's efficiency is what really matters."
The minister reported that the feasibility studies for the pipeline project Taishet-Nakhodka had been finalized and sent on for an environmental examination in late June. The results are to be announced within six months' time, he said. If environmental authorities give the go-ahead, the federal government will be able to make specific decisions on the pipeline project, including the participants and the budget.
Mr. Khristenko also reported that the federal government had drafted a resolution to expand the Baltic Pipeline System to 62 million tons and had submitted it to appropriate ministries for consideration. The draft will be tabled in the Cabinet in October. According to the minister, the Baltic Pipeline System could be expanded before the end of 2005, with the works to cost an estimated $1.3-1.4 billion.
The French gas giant Total remains interested in increasing its assets in Russia, Mr. Khristenko said. "But since this is a commercial secret, questions on specific projects should be addressed to Total's top management," he added. According to the minister, the company has taken part in Russian projects before, and is especially keen to get involved in the development of the Shtokman natural gas deposit.
As Mr. Khristenko pointed out, changes in companies' shareholder lineup are impossible to stop, which is why "transactions for the sale of shares in foreign companies will be conducted quite often, including in Russia." "The process is impossible to contain. This applies not just to portfolio investors, but to strategic investors, as well."
The French business daily Les Echos reported Monday that Total was contemplating the purchase of a stake in some Russian oil company. According to the newspaper, the prospective deal is unlikely to exceed $1billion and to provide Total with a controlling interest. Other media had reported the same some time earlier. Total's President and Chief Executive, Thierry Desmarest, had confirmed that his company was indeed interested in Russian acquisitions, but only in low-risk ones.
