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. Last Updated: 07/27/2016

Canadians Give Up On Yamal

CALGARY, Alberta -- Petro-Canada is staking its ambitions in Russia on Gazprom's $3.5 billion Baltic liquefied natural gas project, having given up on a venture on the Arctic Yamal Peninsula, the company's chief executive said Friday.

Petro-Canada had previously said it was interested in Yamal gas reserves and might consider swapping heavy oil assets for a development opportunity.

"There's a lot of gas up in the Yamal Peninsula and at one time we were in discussions with the license holder, but subsequent to that the license holder got bought out by a consortium of Russian businessmen. So we are no longer in those discussions," Petro-Canada chief executive Ron Brenneman said in an interview.

The company, Canada's No. 4 oil producer and refiner, has also been mentioned as interested in joining development of the giant Shtokman field in the Barents Sea, but Brenneman said that was more the domain of the world's largest oil majors.

"We don't have anything we can bring to the party," he said.

Petro-Canada is on Gazprom's shortlist for participating in the Baltic LNG plant near St. Petersburg, which could be built by 2013. Other potential partners include BP, Eni, Spain's Iberdrola and Japan's Mitsui, Gazprom has said.

Gazprom must also still decide on whether to proceed with front-end engineering work for the liquefaction facility, Brenneman said.

"So that's what we're waiting on. The ball's entirely in their court. They've got all the information -- proposals from us on commercial terms that they have said from their perspective are satisfactory," Brenneman said.