Monday, July 19, 2010

TNK-BP to sell key gas field to Russia after 10-year battle

By Rowena Mason, City Reporter (Energy) 924PM GMT twenty-three March 2010

BP

The Russian state has had the eye on the huge Kovytka gas awaiting in Siberia for most years, requesting vigour on the oil association to palm it over.

Viktor Vekselberg, one of the 4 Russian billionaires who own half of TNK-BP, pronounced that Kovykta would be sole to Rosneftegaz, a state holding company. It had formerly been in negotiations about offered the margin to state hulk Gazprom, but could not determine a price.

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"We plan this year to close the deal," pronounced Mr Vekselberg, according to Russian headlines group RIA-Novosti.

The preference to sell Kovytka comes a month after Russia"s environmental watchdog, endorsed that TNK-BP"s site looseness should be nude since it has unsuccessful to rise the awaiting fast enough.

TNK-BP longed for to outlay $20bn on the field, but prolongation has never got off the ground. The corner try has argued it cannot ramp up outlay since Gazprom has a corner on exports to circuitously China and it would need to set up pipelines costing billions of dollars to reach the Asian markets.

BP has regularly played down the significance of Kovytka, observant it has prolonged been released from calculations of the company"s growth.

The Kremlin has a story of seizing key resources from in isolation companies, that in past years has led to an mass departure of multinational oil companies from the country. However, the ultimate fool around for Kovytka comes as Prime Minister Vladimir Putin has been perplexing to capture some-more unfamiliar investment in to the technically formidable fields of northern Russia.