27 September 2012

RUSSIA / VENEZUELA / OIL: Rosneft Empire Building...Seen As Counterproductive; Rosneft Commits $36 Billion For Caracas.


     Rosneft chief and Putin confidant...Igor Sechin...wants to buy more assets to grow the state run energy giant he runs.
     But some economists maintain state control is the wrong scenario...only re-creating the inefficient monsters of past socialism.
     "If Putin wants to stay in power for the next six years, he needs a lot of cash and he needs a lot of productivity gains. And those are not feasible under a scenario when you are buying more and more. You need to find cash somewhere and these state companies are destroying a lot of value."
     AND : Rosneft has announced plans to spend $36-38 billion in the next 40 years to develop Venezuela's oil...with $20 bn for the Junin 6 project...and $16-20 for Carabobo 2 project.
      President Putin also gifted Hugo Chavez...with a black terrier puppy.