OREANDA-NEWS. On September 26, 2007 the Gazprom Headquarters has hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Tony Hayward, Chief Executive of BP Group, reported the press-centre of Gazprom.

The parties discussed the progress with executing the Agreements of cooperation development signed earlier between Gazprom and BP.

Reference:
BP is one of the largest non-governmental oil and gas producing companies in the world. BP oil reserves exceed 18,3 billion barrels of oil equivalent and 1,4 trillion cu m of natural gas. Basic company activities: oil and gas development and production; oil produce wholesale and retail trade; gas disposal and gas energy; petrochemistry. BP is one of the leaders in LNG world trade.

On June 22, 2007 Gazprom, BP and TNK-BP signed the Agreement on the major terms. The Agreement contemplates establishing a strategic alliance between the companies for long-term investment in joint energy projects as well as asset swaps both in Russia and third countries.

Pursuant to the Agreement, TNK-BP will sell Gazprom a 62,8 per cent stake in Rusia Petroleum, which is the license holder for the Kovykta field, as well as a 50 per cent stake in East Siberian Gas Company, which is implementing a regional gasification project for the Irkutsk Oblast. The deal value will be fixed at a current market price within a 90 day period.

Gazprom and TNK-BP also agreed on a call-option for TNK-BP to buy back a 25 per cent plus one share stake in the Kovykta project. The option could be exercised after the parties to the Agreement have agreed on a project to be executed within the alliance, or have approved an asset swap.

On September 12, 2007 the parties resulted in a joint decision to prolong the deal completion timing till December 1, 2007 in view of a big scope of work embracing asset evaluation and deal arrangements.