Russia Signs Deal for Oil, Gas Exploration in Jordan

Russia’s Energy Minister Sergei Shmatko signed an agreement encouraging Russian companies, including state-owned OAO Zarubezhneft, to explore for oil and gas in Jordan.

The agreement allows for direct investment in exploration projects as well as ventures with private local companies to look for oil and gas in the Arab country. The accord also allows Russians to participate in projects for power generation, oil shale and renewable energy, Jordanian Energy Ministry said today said in an e-mailed statement.

Shmatko signed the agreement today in Jordan’s capital, Amman, before Russian President Dmitry Medvedev was scheduled to end a two-day visit, the ministry said. It didn’t give details about how the pact would encourage Russian companies to do business in Jordan.

Separately, Medvedev and King Abdullah II discussed ways to spur Russian investments in the nuclear industry in Jordan, the kingdom’s official news agency Petra said.

Russia’s ZAO Atomstroyexport is among three groups preselected by Jordan to build the kingdom’s first nuclear reactor by 2019. Jordan is due in March to choose one of the three technologies, which also include Atomic Energy of Canada Ltd. and Paris-based Atmea, a venture between France’s Areva SA and Mitsubishi Heavy Industries Ltd. of Japan.

Medvedev and King Abdullah II also discussed efforts to resolve the conflict between Israel and the Palestinians. Russia is trying to revive Israeli-Palestinian talks, Petra said.

Desert Kingdom

Medvedev traveled to the Palestinian territories for a meeting yesterday with Palestinian Authority President Mahmud Abbas, Petra said.

Jordan, much of it desert, relies almost entirely on imports for its energy. The kingdom hopes to attract $14 billion in investments in energy infrastructure and develop more of its own resources, in part by building a nuclear power plant and developing renewable energy and oil shale.

Jordan has the world’s fourth-largest reserves of oil shale, a sedimentary rock containing solid bituminous materials that are released as petroleum-like liquids when the rock is heated.

It has signed nuclear-cooperation accords with Russia and nine other nations to prepare for the construction of the nuclear reactor. The government estimates it has 70,000 tons of uranium deposits.

To contact the reporter on this story: Nayla Razzouk in Amman at nrazzouk2@bloomberg.net.

To contact the editor responsible for this story: Maher Chmaytelli at mchmaytelli@bloomberg.net.