The company is also talking to Libya’s National Oil Corporation about developing one of the largest Libyan oil fields. Investment in the project, which may total between $1bn and $7bn, has to be approved by the board of directors.

Energy Minister Sergei Shmatko wants the industry to switch to long-term oil delivery contracts to stabilize oil prices. Noting that market behavior was inconsistent, he proposed, oil importing countries should participate in investment programs in oil exporting countries.

By March 1 Russia and China were expected to sign an agreement opening a credit line to Transneft and Rosneft. They are expected to obtain up to $20bn-$25bn in loans secured by oil exports to China.

East Siberia, will assume increasing importance for Rosneft, Russia’s leading oil company, their research director Mars Khasanov said. “This year we will invest 98 billion roubles in East Siberia, and this covers all types of projects and ventures,” he said. East Siberia is crucial for Russia’s first pipeline to China, the 2,700-km East Siberia - Pacific Ocean (ESPO) link for which Rosneft will be the majority supplier of oil. Russian pipeline monopoly Transneft aims to start pumping 600,000 barrels per day of crude from East Siberia to Asian markets by the end of 2009.

West Siberian Resources Ltd says that they have found new oil at the Kolvinskoye field in West Siberia’s Timano-Pechora region. The initial yield was 245 barrels/day. Further production tests are underway and 15 wells are planned until production starts in the third quarter of 2010.

Sakhalin Energy will produce 6 million tons of LNG this year, and the first loaded in February. The company produced the first gas from Lunskoye field 15 kilometres off the north-eastern coast of Sakhalin Island and was sent to the LNG plant via the Trans-Sakhalin gas pipeline.