APEC to Study Impact of State-Owned Oil Companies

May 29 (Bloomberg) -- Asia-Pacific Economic Cooperation energy ministers plan to study the impact of state ownership of oil and gas companies on trade and investment, according to a draft communiqué.

The 21-member body, including China, the U.S. and Russia, will set up a working group to assess how to cooperate with state-owned companies, according to the draft statement obtained by Bloomberg News in advance of the final communiqué later today.

Ministers from APEC, which accounts for 60 percent of global oil and gas demand, are meeting in Darwin, Australia, to discuss energy security and minimizing harmful emissions. The group's dependency on oil imports is set to rise at a time when governments led by Russia and Venezuela are seizing oil assets from private companies.

``It's a problem that private, international oil companies find it difficult to develop reserves,'' Claude Mandil, the International Energy Agency's executive director, said in an interview today. ``Partnerships of state-controlled and private oil companies are needed, but the way to cooperate hasn't been invented.''

BP Plc's Russian venture lost a court case yesterday over its license to a Siberian gas deposit with enough fuel to supply Asia for five years, allowing Russia's government to regain control of the field as early as this week.

Petroleos de Venezuela SA, Venezuela's state-run oil company, said on May 14 that it plans to take control of 18 oil rigs currently operated by multinational corporations in order to reduce drilling costs.

Refining Capacity

The APEC ministers will also encourage member nations to ensure sufficient investment in refinery capacity to meet demand, to facilitate freer trade of oil products and to develop contingency plans in the event of disruptions to supplies, the draft says. Members should also promote energy-efficient transport and alternative fuels, improve energy efficiency and develop cleaner energy technologies, it says.

``We encourage APEC economies to adopt a broad range of measures designed to enhance security of supply and promote fuel- efficient transport and the uptake of viable alternative fuels,'' the draft says.

Dependence on imported oil in APEC will rise to 52 percent in 2030, from 36 percent in 2002, the draft statement says.

Nuclear Safeguards

APEC nations will also be encouraged to consider setting up a regional body to coordinate the efforts of the member countries' nuclear safety authorities, the draft says.

The draft statement omits any reference to greenhouse gas emissions trading, in line with comments yesterday by Australian Industry Minister Ian Macfarlane, who said there were no formal plans to discuss a regional trading plan.

APEC energy ministers expressed a ``very strong desire'' to cooperate in general on reducing carbon emissions, Macfarlane told reporters yesterday.

The APEC nations, which account for more than $19 trillion of GDP, or more than 56 percent of the world's total, need investments of about $6 trillion to meet energy requirements through 2030, the group estimates.

To help mitigate greenhouse gas emissions, the energy ministers will encourage the 21 member nations to set goals and plans for improving energy efficiency across industries. By joining forces with the International Energy Agency, an adviser to 26 oil-consuming nations, APEC will develop efficiency indicators that help all the member nations set out energy-saving plans and review progress, the draft says.

``We direct the working group to strengthen efforts to share information on energy efficiency policies and measures, identify effective energy efficiency approaches and review progress toward efficiency goals,'' it says. ``We direct the working group to further advance collaboration with other international energy forums including the IEA.''

The 21 APEC members are Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Taiwan, Thailand, the U.S. and Vietnam.