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BP surrenders Siberian oil field

In Brief / ENERGY

June 23, 2007|From Times Wire Services

British oil giant BP has agreed to sell its interest in the Siberian Kovykta gas field to state-controlled Gazprom as the Kremlin tightened its grip on Russia's oil and gas industry.

The sale is the culmination of years of pressure on BP's Russian joint venture TNK-BP, which wanted to develop the huge field to supply lucrative export markets in Asia.

Gazprom will pay $600 million to $900 million for TNK-BP's 62.9% stake in the Kovykta operating company and a 50% stake in a smaller company.

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