Company news in February 2004 | |||
Victor Vekselberg: "I Do not Agree with "Either/Or" Wording"
Last week, Gazprom's Head A. Miller fairly strongly expressed itself concerning the prospects of the Kovykta gas condensate field development (as is known, the license to develop the deposit is held by RUSIA Petroleum controlled by TNK-BP). It could have been concluded from his words that Gazprom would take every effort so that to prevent a new export channel from appearing without the concern's participation. In this connection, they deem it necessary in Gazprom to direct Kovykta's gas to the Russian market. Victor Vekselberg, TNK-BP's Managing Director, Production and Technologies, expressed his opinion on the project's future. He pointed out: "The impression that there are two alternative options – either an export route of gas supplies to China, South Korea, and the Pacific Region, or the pipeline's domestic orientation - has shaped somehow. Taking into account our forecast calculated for 30 years ahead, we state uniquely: the Kovykta field is quite capable of meeting the demand of consumers both in South Eastern Asia and in Russia. I would like to emphasize: the question is not posed in the "either/or" principle – one project must not be set against the other. Priority of supplies is quite another matter; but the decision as to where gas should be sent first – to the domestic market or to an external one – will only be determined by guaranteed demand and prices. If it is more advantageous to supply gas to China and South Korea at a certain moment, gas will be sent there; if the domestic market is more attractive, supplies will be redirected. This is an absolutely business approach, and reserves of the deposit allow us to act like that." When asked in what way relations between TNK-BP and Gazprom develop with regard to the Kovykta field, he answered: "Let me reiterate (and I think that Gazprom shares this opinion) – the two parties confirmed the appropriateness of Gazprom's involvement in this project, and I do not doubt that this project will develop with Gazprom's participation. Presently, we are negotiating the structure of its involvement in the project; a joint group in charge of preparation of appropriate proposals was set up. The question about in what way Gazprom would join the project is under discussion by the two business companies, each of them reasonably defending its interests. I am sure that, ultimately, we will structure our relationship. Both parties agree that the Kovykta field is a project that is the best prepared for development, feasible and economically advantageous. There is only a need to finally settle all economic dimensions of the project and to agree upon the principles of joint participation, with the latter being, of course, dependent on the former. On the whole, the project is so multi-dimensional and multi-faceted that active involvement of the state in its development is, in my view, inevitable. Issues relating to the investment process and the pipeline portion development will require a lot of regulatory and licensing activities, so Gazprom and us, being aware of efficiency and feasibility of the project, will jointly work on its implementation…"
Source: Vremya Novostei