Royal Dutch Shell Plc  .com Rotating Header Image

The Associated Press: BP, Gazprom Discuss LNG Joint Venture

March 1, 2007, 7:38AM

MOSCOW — OAO Gazprom has discussed forming a joint venture with BP PLC that could work with liquefied natural gas, Russia’s state-controlled gas monopoly said in a statement Thursday.

BP’s outgoing Chief Executive John Browne met with Gazprom CEO Alexei Miller at the company’s Moscow headquarters on Thursday, the statement said. Browne was accompanied by Tony Hayward, current head of exploration and production at BP, who is set to succeed Browne.

“In particular the creation of a joint venture for developing the international business of the companies, including LNG (liquefied natural gas), was discussed,” the statement said.

No further details of the possible agreement were provided. Spokesmen for Gazprom were not immediately available to comment.

BP spokesman Toby Odone declined to provide any further details of the talks, which he called “preliminary discussions.”

Gazprom produces no LNG of its own, though it agreed to buy a controlling interest in Royal Dutch Shell PLC’s Sakhalin-2 oil and LNG project in December in a deal that observers say came after intense regulatory pressure on the company. Based on the Far Eastern island of Sakhalin, the project is due to deliver its first LNG in 2008.

Separately, BP is in talks to reach an agreement with Gazprom over its massive Siberian Kovykta gas field, which it operates via a subsidiary of its local joint venture, TNK-BP.

TNK-BP has come under pressure from prosecutors and environmental agencies to produce more gas from the field otherwise it may be found in violation of its license to develop the site. BP contends that there is insufficient local appetite for any more gas.

TNK-BP needs Gazprom’s permission to export gas from Kovykta to lucrative Asian markets and analysts expect to see a similar deal to the one with Shell that will give Gazprom control of the field.

© 2007 The Associated Press and its sister non-profit websites,,,,,, and are owned by John Donovan. There is also a Wikipedia feature.

0 Comments on “The Associated Press: BP, Gazprom Discuss LNG Joint Venture”

Leave a Comment

Comment Rules

  • Please show respect to the opinions of others no matter how seemingly far-fetched.
  • Abusive, foul language, and/or divisive comments may be deleted without notice.
  • Each blog member is allowed limited comments, as displayed above the comment box.
  • Comments must be limited to the number of words displayed above the comment box.
  • Please limit one comment after any comment posted per post.

%d bloggers like this: