Gazprom shakes hands with BP

BP and TNK-BP have signed a memorandum of understanding with Russian gas provider Gazprom to form a team that will identify investment opportunities inside and outside Russia.

‘We will initially be looking for projects of at least $3bn, but the potential for further growth could be very significant’ said Tony Hayward, chief executive of BP.

Under the contract, Gazprom will pay between $700 to $900m for TNK-BP’s 63 per cent stake in Rusia Petroleum and 50 per cent stake in East Siberian Gas Company (ESGCo). Rusia Petroleum holds the licence for the Kovykta gas field in East Siberia

TNK-BP has also agreed a ‘call’ option with Gazprom, which gives it the right to buy 25 per cent plus one share stake in Kovykta at an independently verified market price in the long term.