Russia's Bashneft Wins Titov, Trebs Licenses
December 02 2010 - 8:58AM
Dow Jones News
Mid-sized Russian oil producer OAO Bashneft (BANE.RS) Thursday
won the right to develop the Trebs and Titov oil fields in
northwest Russia, following an earlier decision to exclude local
and international energy giants from the tender.
The highly anticipated auction for the Trebs and Titov oil
fields, which combined hold 1.5 billion barrels of oil, has been
mired in controversy, after international majors such as India's
Oil & Natural Gas Corp. (500312.BY) and BP PLC's (BP) Russian
joint venture TNK-BP Ltd. (TNBP.LN) along with local giant OAO
Lukoil Holdings (LKOH.RS) in September were told by authorities
they couldn't bid because of incorrectly filing applications.
The decision left Bashneft as the only bidder, causing outrage
among industry executives, who threatened to take the decision to
court.
Bashneft, which in recent years has grown into Russia's
eighth-largest oil producer through acquisitions, paid 18.48
billion rubles ($588.9 million) for the license.
The company is majority-owned by conglomerate AFK Sistema
(AFKS.RS), which in turn is controlled by Vladimir Yevtushenkov, a
billionaire with close ties to the Kremlin.
The auction for Trebs and Titov was the first major new Russian
oil project offered in years and is seen as a test of the
government's proclaimed push to increase transparency and fair
access to fields.
Russia's government said last year it would start offering
licenses for strategic fields, but little has materialized. The
license for Chayandinskoye, a major gas field in East Siberia, was
last year given to the country's state-controlled gas giant OAO
Gazprom (GAZP.RS), without a tender.
-By Jacob Gronholt-Pedersen, Dow Jones Newswires; +7 495 232
9197; jacob.pedersen@dowjones.com
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