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. Last Updated: 07/27/2016

Agency Puts Off a Decision on Kovykta License Again

The Federal Subsoil Resource Use Agency has put off a decision on the Kovykta gas field run by a subsidiary of BP's joint venture, TNK-BP, officials said Friday.

The agency's committee had already postponed the decision by two weeks on June 1, but a spokeswoman for the Natural Resources Ministry said that due to public holidays earlier last week, that deadline had now been extended.

"The committee has put it off. It could be a week or two, I'm not sure. There won't be a decision on Kovykta today," the spokeswoman said Friday.

Another official at the ministry said there would be no more meetings about Kovykta, just a decision -- but not yet.

"The decision on Kovykta will be taken within days. The holidays were quite long. This is why the decision won't be taken on Friday," the official said.

A TNK-BP spokesman declined to comment.

The delay gives more time for TNK-BP and BP to reach a deal with gas monopoly Gazprom before the license to operate Kovykta is stripped.

n The Industry and Energy Ministry wants to reserve the Kovykta gas field for domestic use after 2017, Interfax reported, citing Deputy Energy Minister Andrei Dementiyev.

Producing gas from Kovykta and other developed fields now would remove the incentive to work on more costly deposits, Interfax said, citing Dementiyev. Russia does not need fuel from the eastern Siberian field for at least 10 years, Interfax reported.

n TNK-BP Holding reported Friday 2006 net profit of $6.41 billion, sales of $32.11 billion and costs of $16 billion in its first financial report to international accounting standards.

Net sales stood at $22.17 billion, while pretax profit was at $8.69 billion, and earnings before interest, tax, depreciation and amortization (EBITDA) was $10.2 billion.

Reuters, Bloomberg