Company news in June 2004 | |||
TNK-BP Hoping for Signing Inter-Governmental Treaties with South Korea and Chine for Kovykta Gas Supplies by October
ÒNK-BP counts that the inter-governmental treaties on gas supplies from the Kovykta gas and condensate field to South Korea and China will be signed by October 2004, informed Mr. Victor Vekselberg, TNK-BP''s Managing Director, Production and Technologies, and Chairman of the Board of Directors of RUSIA Petroleum (a mineral resource user), at a news conference in Irkutsk on Friday. "A visit of Russian President Vladimir Putin to China is scheduled for October. We would like the parties to have agreed upon gas supplies conditions by that time and signed the inter-governmental agreement," he said. In the words of Mr. Vekselberg, an active dialogue with China and South Korea concerning Kovykta gas supplies is underway. "We have not time to contemplate," he pointed out, noting that there is an alternative to Kovykta gas – supplies of liquefied gas. Mr. Vekselberg informed that the final feasibility study for the Kovykta project would have been adopted by 2005 at the earliest. He also noted that Gazexport (a wholly owned subsidiary of Gazprom JSC) would participate in negotiations with China and Korea concerning gas supplies from the Kovykta field. "The Government has adopted a series of resolutions to the effect that Gazprom is the coordinator of development of all gas projects in East Siberia. We agreed to that. We are aware of the appropriateness of the single export channel. Perhaps, Gazexport will work with RUSIA Petroleum on a commission basis," Mr. Vekselberg believes. As was announced, according to a preliminary feasibility study, the first gas will start to arrive to northeastern China and South Korea in the amount of 12 billion and 10 billion cubic meters, respectively, in 2008. Since 2013, China would increase purchases by 8 billion cubic meters, for the Beijing Area. The first gas supplies from the Kovykta field to the Irkutsk Region market may start in the amount of 300 million cubic meters in 2006. Supplies to the region''s market will come to 2 billion cubic meters by 2007, and to 2.2 billion cubic meters by 2009. Proven reserves of the Kovykta gas and condensate field in the Ñ1+Ñ2 categories amount to 2 trillion cubic meters. The major shareholders of RUSIA Petroleum JSC are TNK-BP (approx. 63%), Interros Holding Company (25.82%), and the Irkutsk Region State Property Management Committee (10.78%).
Source: INTERFAX