BP close to $1bn Gazprom deal

BP is close to a deal with Russia's state-controlled Gazprom to sell its stake in a giant Siberian gas field for close to $1 …

BP is close to a deal with Russia's state-controlled Gazprom to sell its stake in a giant Siberian gas field for close to $1 billion (€0.745 billion).

The Wall Street Journal today said the deal was "taking shape in Moscow but still not finalised" and could involve BP's Russian venture being invited back into the Kovykta gas field as a minority shareholder after selling its stake.

It said BP and Gazprom would then launch negotiations on forming a $3 billion (€2.237 billion) global joint venture involving projects in Russia and elsewhere, which each side contributing assets valued at $1.5 billion (€1.118).

A TNK-BP spokeswoman declined to confirm the story. "The negotiations are ongoing. There's no more detail that we can add to that at this stage," she said.

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Gazprom's spokesman declined to comment. Russia's oilfield licensing agency has threatened to strip Rusia Petroleum, 63 per cent owned by TNK-BP, of its licence to operate the Kovykta field in a move interpreted by some analysts as underscoring the Kremlin's desire to regain state control over hydrocarbon assets.

The licensing agency Rosnedra may rule later today whether Rusia Petroleum should lose the licence because it has produced less gas from the field than stipulated in its contract.

Rosnedra will submit its decision to Natural Resources Minister Yuri Trutnev, who said earlier this week that Gazprom's entry into Kovykta could remove the need to strip the licence.