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#28 - JRL 2006-252 - JRL Home
Prosecutors open criminal case against TNK-BP subsidiary CEO

MOSCOW, November 9 (RIA Novosti) - Prosecutors in the Yamal-Nenets Autonomous Area, a region in the north of West Siberia, have launched criminal proceedings against the CEO of a subsidiary of Russian-British joint venture TNK-BP.

The Prosecutor General's Office said on its Web site that it has charged the TNK-BP subsidiary Rospan International with "carrying out its activity connected with developing deposits of hydrocarbons on the Vostochno-Urengoi and Novo-Urengoi license sites in violation of licensing terms."

The office said the Yamalo-Nenets environmental prosecutors are conducting a preliminary investigation into the matter.

Earlier it was reported that the Prosecutor General's Office had submitted a representation to the Federal Agency for the Management of Mineral Resources asking the body to terminate Rospan's right to use subsoil sections in connection with its violations of relevant laws.

Prosecutors said a member of parliament and an Internet publication columnist requested a check into Rospan's activity, and it was discovered that the joint stock company systematically failed to observe the laws on environmental protection and industrial safety.

The closed joint stock company Rospan International was founded in 1992 to develop the Achimov gas deposits of the Vostochno-Urengoi gas and condensate deposit in the Yamal-Nenets Autonomous Area. Rospan is also entitled to develop the Valanzhinsk deposits.

TNK-BP said the company's management is studying the materials on the situation.

"We have been working in accordance with all legislative norms," it said.

While commenting on the prosecutor's office's report, TNK-BP said it had asked controlling bodies to extend the term for the submission of documents on facilities that could now result in a withdrawal of Rospan's license, but received no answer.

Russia's authorities have been stepping up pressure in recent months on oil projects developed by foreign and domestic companies, raising speculations over the Kremlin's alleged attempt to increase state control over the energy sector.

In September, the Natural Resources Ministry withdrew a key environmental permit for the huge Sakhalin II oil and gas project, which is being implemented under a production-sharing agreement dating back to 1994, over alleged environmental violations.

In late September, the ministry also announced planned probes into other production-sharing agreements, the Kharyaga deposit, developed by France's Total, and the Kovykta oil and project in East Siberia, developed by TNK-BP.

Minister Trutnev warned of a possible revocation of licenses from companies that violate legislation or the provisions of agreements on production at mineral deposits.

Russian prosecutors issued a warning in September that TNK-BP could have its operating license for the Kovykta deposit, one of the largest in the region, revoked if it fails to address environmental protection issues and other problems.

Kovykta, with 1.9 trillion cubic meters of proven reserves, is highly important to the Russian government, which is pursuing an ambitious project to build a gas pipeline network to meet Asian nations' energy needs and to diversify its export destinations.