Brussels, 26/06/2007 (Agence Europe) - On Monday, Energy Commissioner Andris Piebalgs welcomed the signing of an agreement between the British oil company BP and Russian gas giant Gazprom on the Kovykta gas field (Siberia). On Friday, BP announced that it was selling its stake in the Kovykta gas field to Gazprom for between $700 and $900 million, and that it was setting up a joint venture with Gazprom. The licence for the Kovykta field, considered to be one of the most promising in Russia, is currently held by Russia Petroleum, a subsidiary of TNK-BP, which itself is 50% owned by BP. In concrete terms, TNK-BP will sell the 62.9% stake it had in Russia Petroleum to Gazprom, as well as its 50% share in the East Siberian Gas Company, which is constructing the regional gasification project. For several months, the Kovykta project has been the centre of conflict between its operators and the Russian authorities, which recently suggested that the issue could be resolved by Gazprom becoming involved. Russia claimed the TNK-BP subsidiary Russian Petroleum was not producing as much gas as it had agreed when the licence was granted, and threatened to take away its licence without compensation. “The Commission welcomes the agreement between BP and Gazprom which provides a mutually acceptable solution to the licences issue for the development of the Kovykta gas field,” Mr Piebalgs said in a press release. He went on, “The Commission expects this agreement will have a positive impact on the investment climate in Russia since the deal recognises investments already made by TNK-BP in the Kovykta project. The Commission welcomes the intention to create a strategic alliance between Gazprom and BP for investment in long-term energy projects which will thus contribute to the EU's security of supply”. (eh)