(The Kovykta field in eastern Siberia holds enough gas
to satisfy the world’s needs for a year)
By Russell Hotten
Last Updated: 2:13am BST 24/06/2007
BP has been forced to cede control of the massive Kovykta gas field to Russia’s state-run energy giant Gazprom as part of an “historic agreement” that would allow the companies to swap international assets and jointly invest in projects around the world.
After months of Kremlin-inspired pressure, the UK oil major’s Russian joint venture, TNK-BP, has sold its 63pc stake in the company that operates the Kovykta field, which holds enough gas to satisfy the world’s needs for a year.
But there was confusion about the price, with BP saying that Gazprom will pay between $700 and $900m (£350m-£450m) “subject to adjustments” and the Russian company saying the stake is worth $600m-$800m. As part of this deal, TNK-BP is selling its 50pc interest in the East Siberian Gas Company to Gazprom.
The companies have also signed a memorandum of understanding (MoU) to form a strategic alliance and will appoint a joint team to target investment opportunities inside and outside Russia.
Tony Hayward, BP’s chief executive, said yesterday: “We will initially be looking for projects of at least $3bn, but the potential for further growth could be very significant. This historic agreement lays the ground for powerful co-operation between BP, TNK-BP, and Gazprom.”
TNK-BP has a call option to buy back 25pc of Kovykta at an independently-verified price. Whether TNK-BP exercises this option will depend on what other investments and assets swaps are agreed.
Analysts gave a mixed response. Andrew Neff, of Global Insight, said that as TNK-BP faced having the Kovykta operating licence revoked without compensation, any deal that involved payment and allowed the UK company to continue exploiting Russia’s resources was good news. “BP not only got a relatively market price for the asset, but also has opened up new growth opportunities for itself in Russia in partnering with Gazprom,” he said.
However, another analyst said: “We don’t know what price they [BP] are getting and they’ve only signed an MoU. This is not a done deal, and my guess is that there is still a long way to go, with the prospect of more political pressure put on BP.”
BP had invested $450m in the venture.
The Kremlin wants to claw back energy assets that it believes were sold off too cheaply to western companies in the 1990s. Last year Royal Dutch Shell was forced to relinquish control to Gazprom of the Sakhalin-2 gas project after months of allegations that the Anglo-Dutch company breached its licence.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/06/23/cnbp123.xml
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
