RusEnergy

09.11.2006 MosNews – Prosecutors in the Yamal-Nenets Autonomous Area, a region in the north of West Siberia, have launched criminal proceedings against the CEO of gas-producing Rospan subsidiary of Russian-British joint venture TNK-BP. MosNews has reported on Wednesday that the Prosecutor General’s Office decided to look into Rospan’s production activities in West Siberia, because the company was “violating nature conservation legislation”. The prosecutors have submitted a request to the Federal Agency for Management of Subsoil (Rosnedra), asking the agency to terminate Rospan’s rights to develop the deposit. On Thursday, the Prosecutor General’s Office said on its website that it charged Rospan International, 100-percent subsidiary of TNK-BP, with “carrying out its activity connected with developing deposits of hydrocarbons on the Vostochno-Urengoi and Novo-Urengoi license sites in violation of licensing terms.” The office said the Yamalo-Nenets environmental prosecutors are conducting a preliminary investigation into the matter. The closed joint stock company Rospan International was founded in 1992 to develop the Achimov gas deposits of the Vostochno-Urengoi gas and condensate deposit in the Yamal-Nenets Autonomous Area. Rospan is also entitled to develop the Valanzhinsk deposits. The company used to be owned by now-bankrupt Yukos Oil Company and one of Russia’s largest private gas producers Itera. Several years ago it was acquired by TNK-BP. TNK-BP said the company’s management is studying the materials on the situation. “We have been working in accordance with all legislative norms,” it said, quoted by RIA Novosti. While commenting on the prosecutor’s office’s report, TNK-BP said it had asked controlling bodies to extend the term for the submission of documents on facilities that could now result in a withdrawal of Rospan’s license, but received no answer. Russia’s authorities have been stepping up pressure in recent months on oil projects developed by foreign and domestic companies, raising speculations over the Kremlin’s alleged attempt to increase state control over the energy sector. TNK-BP’s other gas asset, Kovykta gas condensate field, which is being developed by Rusia Petroleum, is also in danger of losing its license. In September the Russian prosecutors warned TNK-BP that it could lose the license if it fails to address environmental protection issues and to start gasification of Irkutsk region by January 2007. Kovykta, with 1.9 trillion cubic meters of proven reserves, is highly important to the Russian government, which is pursuing an ambitious project to build a gas pipeline network to meet Asian nations’ energy needs and to diversify its export destinations.