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Wednesday, 07 January, 2009, 21:20 GMT | more >>

Gazprom takes control at Kovykta



By Upstream staff 

Gazprom has taken the reins at Kovykta after UK supermajor BP said its joint venture TNK-BP will sell its 62.89% stake in Rusia Petroleum, which holds the East Siberian field's licence, to the Russian gas giant.

Reports said that BP and Gazprom had not reached an agreement over the stake's price. However, one analyst told UpstreamOnline that Gazprom is expected to pay "a bargain price" of between $700 million and $900 million.

TNK-BP will also sell its 50% stake in East Siberian Gas Company, the company working on the regional gasification project, BP said in a statement.

BP added it and TNK-BP had signed a memorandum of understanding to create a strategic alliance with Gazprom, which will see them invest jointly in major long-term energy projects or swap assets.

"We will initially be looking for projects of at least $3 billion, but the potential for further growth could be very significant," BP chief executive Tony Hayward said in a statement, adding the agreement "lays the ground for powerful co-operation between BP, TNK-BP and Gazprom".


Friday, 22 June, 2007, 12:47 GMT  | last updated: Friday, 22 June, 2007, 14:23 GMT

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