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. Last Updated: 07/27/2016

BP, TNK Buy Into Koviktinsk

British Petroleum and Tyumen Oil Co., or TNK, have bought South Korea's East Asia Gas Co.'s 7.1 percent stake in Russia Petroleum, operator of Siberia's massive Koviktinsk gas project, for an undisclosed sum, Russia Petroleum officials said.

EAGC's sale is seen as a clear indication that South Korea no longer hopes to receive Russian gas in the foreseeable future, said Dmitry Avdeyev, an analyst at United Financial Group.

"EAGC apparently believes that shipments of gas from Koviktinsk will primarily be supplied to the Chinese market," Avdeyev said.

Located in the Irkutsk region in eastern Siberia, the Koviktinsk gas condensate field contains deposits of natural gas of about 1.4 trillion cubic meters and is seen as a top candidate to become the largest supplier of Russian gas to China and other Asian countries. Until recently, British Petroleum controlled a 25.59 percent stake in Russia Petroleum through its subsidiary Burovik East Siberia Holdings. TNK acquired a 5.98 -percent stake through the Cyprus offshore company Heartway Limited.