BP Seeks Deal to Set Russia Gas For Britain
By Selina Williams
BP PLC is in early talks with the OAO Gazprom -led Nord Stream pipeline consortium over an extension of the link to carry the gas straight into the U.K., a spokesman said Sunday.
BP has long been interested in the pipeline extension but has been unable to strike a deal due to a provision in the shareholder agreement with its oligarch partners in the Russian TNK-BP Holding joint venture, which said the company could only explore opportunities in Russia through TNK-BP.
But BP’s recent agreement to sell its 50% stake in the venture to Russia’s OAO Rosneft, coupled with the oligarchs’ agreement to also sell their share, has released BP to pursue new ventures in Russia. The Rosneft deal to buy BP’s TNK-BP stake is expected to close in next year’s first half.
The talks come as the U.K. government is seeking to bolster its energy security by diversifying its gas imports as domestic North Sea output declines. In the past year, the British government has realigned its energy policy to encourage the construction of more gas-fired power stations while reducing greenhouse-gas emissions, and wants to ensure there is enough supply for the plants.
By posting your comment, you agree to abide by our Posting rules