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Russia gives oil companies six
months to shape up

By
Stephen Boykewich
AFP
MOSCOW
Petroleumworld.com 10 25 06
Russia's natural resources ministry has given oil companies working
in Russia six months to update plans for their projects amid a crackdown
on foreign and domestic energy companies for alleged environmental violations,
news agencies reported Tuesday.
"I want to ask companies to promptly make changes to their license
agreements ... voluntarily introducing terms on the length of time and
rules for extraction" for their project licenses, ITAR-TASS quoted
Minister of Natural Resources Yury Trutnev as saying.
"I understand that at the initial stage, you may not have known
everything about the structure and details of extraction, but now you
can come to us with concrete figures about volumes and exploration terms
and justify them," Trutnev told a gathering of oil company executives.
The minister's proposal came amid a massive campaign of environmental
checks and threatened license removals against energy companies.
Russian environmental regulators said Tuesday they were considering
cancelling licenses for 17 oil companies, including a subsidiary of
state oil firm Rosneft.
In spite of the flurry of activity from environmental regulators, the
General Prosecutor's office suggested they were falling down on the
job.
"Rosprirodnadzor, Rosnedr and Rostekhnadzor are showing a low level
of activity in checking the activities of subsoil users," Interfax
quoted first assistant prosecutor Alexander Buksman as saying Tuesday,
referring to the country's top three environmental agencies.
Threatening to remove licenses without criminally prosecuting companies
is "only encouraging the violators," Buksman said.
Trutnev said he agreed that the agencies were poorly coordinated, adding
that certain agency officials may lose their jobs.
An initial wave of pressure against major foreign oil companies such
as Shell, ExxonMobil and Total for alleged environmental violations
led to complaints by foreign officials of unfair treatment.
Agencies have since targeted Russian groups such as Rosneft, number
one private oil producer Lukoil, and GazpromNeft, the oil-producing
branch of state gas monopoly Gazprom.
Trutnev backed away from the question of withdrawing licenses in his
comments Tuesday, but said that there would be consequences if companies
did not update their licenses terms within six months.
"If these proposals are not fulfilled, we will find ways to influence
these companies," Trutnev said.
Environmental agencies have accused energy companies of failing to respect
environmental norms in their activities, but many analysts see the initiative
as part of a longstanding trend of tightening government control over
the energy sector.
AFP
24 1621 GMT 10 06
Copyright©
2006 AFP. All Rights Reserved.
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