2009-08-19-2007-08-01

WI

Gazprom, Moscow, (London: OGZD) plans to acquire Siberian assets from BP Plc, London, (NYSE: BP) and BP's Russian joint venture, TNK-BP, (RTS: TNBP) for between US$700 million and US$900 million. The assets include a 62.9% stake in Russia Petroleum, which holds the license for Kovykta Field in eastern Siberia, and a 50% interest in East Siberian Gas Co. that is constructing the regional gasification project. BP and Gazprom also have entered a strategic alliance to invest jointly in major long-term energy projects or swap assets around the world. BP chief executive Tony Hayward says, "We will initially be looking for projects of at least US$3 billion, 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." He adds the company will set up a joint-steering group to look for suitable investment options "across all geographies." TNK-BP has received a longer-term "call" option to buy a 25%-plus-one-share stake in Kovykta at an independently verified market price, which could be exercised once a significant joint investment or asset swap has been agreed upon. TNK-BP president and CEO Bob Dudley says, "This is an important development in the future growth of TNK-BP. We look forward to broadening our working relationships with Gazprom and BP and to further developing our Russian asset base as well as securing access to material additional opportunities for TNK-BP."