Russia to seize Kovytka gas field from BP venture

[phantom power]

Russia is poised to seize control of Kovytka, one of the world's largest gas fields, from TNK-BP, a joint venture between BP and four Russian oligarchs.

The move would mark a shift in the 10-year battle over the Kovytka field in east Siberia, where a $20bn (£12.8bn) development project is underway. It is one of Russia's key energy assets and has the potential to be a major earner, but production has never got off the ground for the Anglo-Russian consortium.

Russia's environmental watchdog, RosPrirodNadzor, yesterday recommended that TNK-BP's licence should be stripped because it has failed to develop the prospect. A final decision lies in the hands of the oil and gas licensing regulator, Rosnedra.

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Viktor Vekselberg, one of Russia's richest men and one of the four billionaire investors, told the country's President Dmitry Medvedev on Friday that a state inspection at Kovykta was "clearly not supportive for the investment climate in our country."

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7259070/Russia-to-seize-Kovytka-gas-field-from-BP-venture.html