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BP close to Gazprom deal



By Upstream staff 

BP is close to a deal with Russia's state-controlled Gazprom to sell its stake in a giant Kovykta gas field for close to $1 billion, media reports said.

According to the Wall Street Journal, citing unnamed sources, a deal was "taking shape in Moscow but still not finalised" and could involve BP's Russian venture being invited back into the Kovykta gas field as a minority shareholder after selling its stake.

Russia's oilfield licensing agency had threatened to strip Rusia Petroleum, 63% owned by TNK-BP, of its licence to operate the Kovykta field in a move interpreted by some analysts as underscoring the Kremlin's desire to regain state control over hydrocarbon assets.

People familiar with the matter have told Reuters BP was inching towards a deal with Russia that would allow it to retain an interest in the field by offering some of its assets outside Russia.


Friday, 22 June, 2007, 06:23 GMT  | last updated: Friday, 22 June, 2007, 08:23 GMT

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