BP,
Gazprom LNG report labelled "speculation"
Trinidad Express
Port Spain
Petroleumworldtt.com
09 09 07
BP
has labelled "pure speculation" a
recent news report indicating that BP had offered
to contribute part of its liquefied natural gas
business in Trinidad and Tobago to its global venture
with Russian gas monopoly Gazprom.
According to Reuters news service, the report
was originally published in Vedomosti business
newspaper in Moscow which quoted sources close
to BP's Russian vehicle TNK-BP as saying that the
company also had made a few other contribution
proposals. BP holds a 50 per cent stake in TNK-BP.
Sources
at bpTT told Business Express that "BP
considers the story to be pure speculation and,
as such, does not comment in speculation or rumors."
bpTT is a major player in Trinidad and Tobago's
gas industry. Trinidad and Tobago is one of the
biggest suppliers of liquefied gas to the United
States. Gazprom is the world's largest gas producer
and currently supplies a quarter of Europe's gas
needs.
BP offers Gazprom Trinidad LNG for global venture
Wednesday, August 29th 2007
Reuters/MOSCOW - BP Plc has offered to contribute part of its liquefied natural
gas business in Trinidad and Tobago to its global venture with Russian gas
monopoly
Gazprom, a newspaper reported last Thursday.
Vedomosti business daily quoted sources close
to British energy company BP's Russian vehicle
TNK-BP as saying BP had also made a few other contribution
proposals, which the sources declined to disclose.
Gazprom, the world's largest gas producer, already
supplies a quarter of Europe's gas needs, but wants
to expand into the fast growing US LNG market.
Analysts said it would be interested in becoming
BP's partner in Trinidad's LNG as the Caribbean
country was one of the biggest suppliers of the
United States.
"Participation in this project will enable
Gazprom to expand its presence on the LNG markets,
which is one of the priorities for the company," analysts
at UBS brokerage said in a note.
Both Gazprom and BP declined to comment on the
report last Thursday.
Gazprom, BP and TNK-BP agreed to set up a global
venture earlier this year following Gazprom's acquisition
of the giant East Siberian Kovykta field from TNK-BP.
TNK-BP wanted to use Kovykta for an ambitious
project of gas supplies to China, but Gazprom lobbied
the Russian government to block the plan as it
had a rival scheme.
TNK-BP, in which BP has 50 per cent, was finally
forced to sell Kovykta to Gazprom, but the three
firms agreed to set up a bigger gas venture based
on assets worth at least US$3 billion.
Gazprom's contribution would be represented by
Kovykta, TNK-BP would contribute its other Russian
gas assets, including Rospan, while BP's contribution
has yet to be defined.
Deutsche UFG brokerage said BP's Trinidad offer
represented good news for Gazprom but added that
it expected long discussions around the venture's
asset composition.
"Gazprom was originally willing to offer
stakes in the Shtokman field to foreign investors
in exchange for their assets worldwide but later
concluded that the would-be partners were not able
to offer assets similar in size and quality to
the Shtokman field," said Deutsche UFG.
Shtokman is a giant Barents Sea field, which Gazprom
wants to use to supply both the European and the
US markets.
Deutsche UFG said that, as in the Shtokman case,
Gazprom may decide to value Kovykta very high.
BP may in turn argue that Kovykta's reserves are
difficult to monetise given that Russian talks
with China over gas supplies are stuck due to pricing
disagreements. Production from Kovykta is not expected
to start before 2015-2020.
"Gazprom may be unhappy with the stake offered...and
demand other assets, or BP may consider the Kovykta
prospects as weak," said Deutsche UFG.
- Reuters
Trinidad
Express
Wednesday, September 5th 2007
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