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Russian court opens way for TNK-BP to lose gas field license
AFP
MOSCOW
Petroleumworld.com 05 29 07A Siberian court on Monday rejected an attempt by Russian-British oil major TNK-BP to block the possible removal of its license to develop the massive Kovykta gas field.
The decision means environmental authorities may revoke the license in a matter of days because of underproduction, paving the way for state-run Gazprom to take control of the field.
The arbitration court of the Eastern Siberian city of Irkutsk ruled in favour of two state agencies against the field's developer, Rusia Petroleum, which is 62.4 percent controlled by TNK-BP.
Rusia Petroleum has fallen far short of its license commitment to produce nine billion cubic metres of gas annually, producing only 33.8 million cubic metres in 2006, according to environmental watchdog Rosprirodnadzor.
The company contends it cannot produce the required amount because state gas monopoly Gazprom will not allow it to build a planned export pipeline to China.
"It is a political question," TNK-BP's Irkutsk region legal manager Gennady Ratnikov said of the court's decision, Interfax reported.
He said Rusia Petroleum may appeal the decision.
Analysts have seen pressure over the license as an attempt to win control of the field for Gazprom.
TNK-BP, which is 50-percent owned by British oil major BP and 50-percent owned by Russia's Alfa Access Renova, values the Kovykta field at two billion dollars (1.48 billion euros).
AFP 28 1337 GMT 05 07
Copyright© 2007 AFP. All Rights Reserved.
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