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#44 - JRL 2007-156 - JRL Home
Gazprom To Propose Changes To Kovykta License In A Month - Ministry

MOSCOW. July 17 (Interfax) - Gazprom (RTS: GAZP) is to submit its proposal on changes in the license agreement for the Kovykta gas condensate field to the Russian Natural Resources Ministry, which launched a formal mechanism to revoke the license for the field from Rusia Petroleum (RTS: PTRL), a subsidiary of TNK (RTS: TNKO)-BP, by the end of the summer, Russian Natural Resources Minister Yury Trutnev told journalists on Tuesday.

"They asked for such a break," Russian Natural Resources Minister Yury Trutnev said commenting on results of recent talks with Gazprom managers on the issue.

"We agreed that Gazprom will come up with its ideas for bringing the Kovykta field intp production," Trutnev said.

According to the conditions of its license, Kovykta operator Rusia Petroleum should have supplied 9 billion cubic meters of gas to Irkutsk region in 2006. However, the company claims that there is currently insufficient demand in the region, although the company is ready to start producing and supplying gas. About a year ago TNK-BP prepared changes to the Kovykta license agreement, but Rosnedra did not approve them.

Rosnedra and Rosprirodnadzor consider the shortfall in production volumes to be the main license violation.

A Rosnedra commission considered the issue of the Rusia Petroleum license at a meeting on June 1, but did not reach a decision, despite the fact that the draft minutes from the meeting contained a decision to revoke the license. The commission called the issue complicated and took a time-out of two weeks. Gazprom, British Petroleum (BP) and TNK-BP agreed on June 25 that the Russian gas monopoly will assume control over the gas field.