04 June 2004 08:48
GAZEXPORT TO NEGOTIATE KOVYKTA GAS EXPORTS
MOSCOW. June 4 (Interfax) - Gazprom's export arm Gazexport will conduct negotiations on exporting gas produced
at the Kovykta gas condensate field in the Irkutsk region, Gazprom said in a press release.
The agreement was reached at a meeting between Gazprom CEO Alexei Miller and TNK-BP Managing Director Viktor
Vekselberg, Gazprom said. TNK- BP's Rusia Petroleum subsidiary holds the Kovykta license.
"The parties agreed that there should be one outlet for East Siberian gas exports to the Asia-Pacific region.
Vekselberg, for one, said Gazexport should conduct negotiations on the terms for exports supplies, including volumes,
schedules and the price formula," Gazprom said.
"This is the first thing that worries us," he said.
Ananenkov also said that the feasibility study for the project
Vekselberg earlier said TNK-BP planned to negotiate the joint development of Kovykta with Gazprom by the end of the
year.
Gazprom and TNK-BP have formed a working group on the Russian gas monopoly's involvement in the project.
Gazprom needs clear confirmation from Rusia Petroleum, whose main shareholder is TNK-BP, of the legitimacy of its
ownership of the license for this field before deciding to join the project, Gazprom Deputy CEO Alexander Ananenkov said
at a press conference in Moscow.
prepared by its participants contains serious contradictions. In particular, he said that each of the parties signed
the feasibility study with their price. "Therefore it is impossible to call this document a feasibility
study," Ananenkov said.
The feasibility study also does not take the issue of helium extraction into consideration. "It is impossible to
develop this field without taking helium into consideration," he said.
He said that the feasibility study is not oriented towards Russian consumers, which contradicts the program for the
complex development of Eastern Siberia and the Far East. "The feasibility study does not involve the development of
the gas transport system in the east of the country," he said.
He also noted that the feasibility study includes a pipeline built along the south shore of Lake Baikal, which is
impossible for ecological reasons.
Ananenkov said that gas from Kovykta could be transported to the north, together with gas from the Chayanda
field.
He said that given that there is no agreement on price, gas supplies from the Kovykta field to the export market are
more effective than supplies to the domestic market.
Taking the feasibility study into consideration, we do not see any benefit for ourselves," he said.
at 12 bcm, to northern China at 8 bcm and to Korea at 10 bcm.
Gas deliveries are planned to start in 2008, so that a stable level
He also said that Gazprom has not officially been presented with the feasibility study for the Kovykta project.
Rusia Petroleum, who holds the license to develop the Kovykta field, the China National Petroleum Corporation (CNPC)
and the Korea Gas Corporation (Kogas) approved a report on the international feasibility study for the Kovykta project
back in the fall of 2003.
The document targets annual deliveries of gas to northeastern China
of deliveries of 30 bcm per year can be reached no later than 2017.
The main shareholders in Rusia Petroleum are TNK-BP, with 62.42% of shares, Interros has 25.82% and the Irkutsk
Region State Property Committee owns 11.24%.
Kovykta, which is 450 km from the city of Irkutsk, holds an estimated 1.9 trillion cubic meters of natural gas.
[Interfax] |
RUSSIA IN FACTS
