RusEnergy

12.05.2005 14:28 MSK - MosNews - Russia's Natural Resources Minister Yuri Trutnev said on Thursday, May 12, that the Russian-British oil giant TNK-BP may face repressive measures for failing to stick to the schedule for the development of a huge Kovykta natural gas deposit. "We do not exclude the possibility of taking certain measures against the company due to its delays in developing Kovykta deposit," Trutnev, quoted by RIA Novosti, told reporters. "At the same time I understand TNK-BP's problem, they have no necessary infrastructure to develop Kovykta. Still, the government cannot wait forever, while the company reaches an agreement with Gazprom." TNK-BP and its subsidiary Rusia Petroleum which holds a license to Kovykta had already been accused of failing to start any development on site back in September 2004. As MosNews reported back then, Natural Resources Minister Yuri Trutnev said that Rusia Petrolem has not yet started production at the project and that the ministry is now considering withdrawing the license from the company (and ultimately its owner, TNK-BP). At that point TNK-BP denied the accusations and declared that it is fulfilling all of its obligations under its contract. The Russian-British oil giant has been in talks with natural gas monopoly Gazprom regarding Gazprom's participation in the project, but no final agreement has been reached yet. A month ago Alexander Medvedev, head of Gazprom's export arm Gazexport, said that Kovykta project, which hinges on Gazprom approval and is already behind schedule, was unlikely to get the go-ahead before the firm's merger with state-run Rosneft Oil Company is wrapped up. Yuri Trutnev also said that when "TNK-BP took out the license they should've thought about infrastructure development". At the same time the Russian minister noted that the international oil giant is not the only company that may face repressive measures for delaying project development. "The same approach, it seems to me, should be used against Gazprom which also delays development of several deposits," Trutnev said.