October 03, 2007	Wednesday	Ramazan 20, 1428

LISBON, Oct 2: The European Union hopes to finalise soon a new energy deal with Africa, also cultivated as a supplier of oil by China and the United States, the EU’s Energy Commissioner said on Tuesday.

“We hope to finalise a new partnership agreement at the end of this year, in which energy will be a key element,” Andris Piebalgs told reporters at a conference. He did not elaborate further.

The EU is keen to diversify its energy supplies and increase the security of those links. A similar relationship with oil and gas supplier Russia should also be deepened, Piebalgs said.

“Our energy dialogue with Russia is fundamental to both the EU and Russia,” he said.

Russia exports 60 per cent of its oil to the EU, which represents over 25 per cent of total EU oil consumption. It also exports 50 per cent of its natural gas to the bloc, about one quarter of total EU natural gas consumption.

“This is why we must give priority to developing a post-Partnership and Cooperation Agreement with Russia with an important energy element,” he said.

The current Partnership and Cooperation Agreement (PCA) sets the framework for bilateral contacts between EU and Russia and calls for activities and dialogue in a number of areas.

Security of supply for rising demand was crucial, Piebalgs said.

“Future oil supplies, which are more and more concentrated in a handful of countries, often exposed to high geopolitical risks, may not be sufficient to meet this quickly rising demand,” he told reporters at the Lisbon 2007 Energy Forum.

“As a result, the risk of oil supply disruptions is increasing, especially if large developing countries do not adopt appropriate emergency response policies.” Europe accounts for around one seventh of energy consumption in the world and is dependent on imports for over half of that energy use. —Reuters