Gazprom
Gazprom is the world’s largest gas company basically focused on geological exploration, production, transmission, storage, processing and marketing of gas and other hydrocarbons. The Russian state owns a 50.002 per cent controlling stake in Gazprom. Gazprom’s mission is to provide effective and well-balanced gas supply to Russian customers and to safely implement long-term gas export contracts.
Gazprom’s strategy is to acquire the leading position among the global energy companies by entering new markets, diversifying core business activities and ensuring reliable supplies.Gazprom possesses the world’s largest natural gas reserves.
Gazprom in Iran
Iran’s belligerence towards the west and its more than ambitious nuclear programme sent ripples through capital markets last few days and pushed oil above $140/bbl. Adding a new dimension to the unfolding saga, Iran has signed an agreement for Gazprom to develop Iranian oil and gas fields. The deal becomes particularly interesting as it was signed on the heels of the French oil giant, Total’s withdrawal from a multi-billion-dollar gas deal to develop phase 11 of the South Pars gas field. The South Pars gas field is arguably the largest gas field in the world shared between Iran and Qatar. Total withdrew due to political tensions in the region. Western countries are also keen to impose sanctions on Iran due to the latter’s nuclear aspirations. Gazprom’s entry to Iran clearly indicates that Russia is not prepared to toe the line with the west. It also means that extensive UN sanctions on Iran or military intervention by a US led coalition is highly unlikely. After all, Russia is a permanent member of the UN Security Council which determines such actions. Russia also wields considerable power in the Europe with its new found weapon in energy supplies. According to Iranian state television, Mr. Alexei Miller, CEO of Gazprom has stated that "Gazprom will be a cooperative partner for the Islamic Republic of Iran." The cooperation agreement also includes possible participation of Gazprom in the planned peace pipeline that would deliver Iranian gas to India and Pakistan. The State television has also highlighted Gazprom’s intent to participate "in big oil and gas projects; in South and North Pars, Azadegan and the Caspian Sea fields." Azadegan is Iran's biggest onshore oil field with an estimated 42 billion barrels of crude oil in place. Production started in February using only Iranian firms after the Japanese partner Inpex withdrew from the project. If Russia’s heightened interest in Iran averts a military intervention in the already volatile Middle East and the Persian Gulf, it should be good news for markets. Russia one would hope will also ensure an unprovoked attack on Israel by playing a constructive role with Iran’s confrontational President, Mr. Mahmoud Ahmadinejad. Russia is seeking to establish its authority on the world’s petroleum resources and Gazprom’s entry to Iran despite the western nation’s desire to impose sanctions further confirms those ambitions. Similar deals with other parts of the world, with or without the blessings of the west should therefore cause little surprise.