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TNK-BP Sells Kovykta Gas Field Stake to Gazprom

BP said on Friday its Russian joint venture TNK-BP had agreed to sell Gazprom its 62.89% stake in Rusia Petroleum, the company which holds the licence for the Kovykta gas field in East Siberia.

TNK-BP will also sell its 50% interest in East Siberian Gas Company (ESGCo), the company constructing the regional gasification project, BP said in a statement.

BP also said it and TNK-BP had signed a memorandum of understanding to create a strategic alliance with the Russian gas giant, Gazprom, to invest jointly in major long-term energy projects or swap assets around the world.

"We will initially be looking for projects of at least $3 billion, but the potential for further growth could be very significant," BP chief executive Tony Hayward said in a statement, adding the agreement "lays the ground for powerful co-operation between BP, TNK-BP and Gazprom."