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. Last Updated: 07/27/2016

TNK-BP Gets Kovykta Well Approval

TNK-BP on Monday won state approval to drill production wells at the Kovykta gas field, where government officials have threatened to revoke licenses for missed output targets.

TNK-BP plans to build 18 wells and a processing unit to provide gas to consumers in the Irkutsk region, the country's industrial safety agency, which reports directly to President Vladimir Putin, said on its web site Monday.

Inspectors from the Natural Resources Ministry last week began gathering data to review TNK-BP's compliance with its license to the $20 billion Kovykta project as well as alleged environmental damage along a pipeline construction site.

TNK-BP is seeking to reduce a requirement that it supply 9 billion cubic meters per year of gas to consumers in the Irkutsk region, saying the region can use only about 2.5 billion cubic meters per year, while the difference would have to be flared.

The government plans to hold TNK-BP to its current license obligation, Anatoly Ledovskikh, a deputy head in the Natural Resource Ministry's subsoil use agency, said in December.