Reply #6: BP may lose license to Kovykta gas field

[ozymandius]

MOSCOW - BP PLC is likely to lose its license to develop a giant Siberian gas field that could be used to supply Asian markets, a senior environmental official said Friday.

Oleg Mitvol, the deputy head of Russia's environmental watchdog, Rosprirodnadzor, said he expects the license to be revoked as state regulators met to determine whether BP had been under-producing at the Kovykta field and should therefore lose the rights to develop the 2.1 trillion cubic meter field.

Mitvol cited draft minutes from the meeting which recommend that BP's permit be pulled for failing to meet a 9 billion cubic meter per year production target. BP has countered that it was only meant to meet local demand, which is far lower.

Meanwhile, the opportunity to export gas to China, which would spur development of the field, has so far been blocked by Gazprom — the only company allowed by law to export Russia's gas.

http://news.yahoo.com/s/ap/20070601/ap_on_bi_ge/russia_bp