Thursday, November 23, 2006

Gazprom Gains Control Over Large Gas Field in Yamal Area

Reuters - Gazprom has gained control of a big gas field on the Yamal peninsula by buying it from its former owner after reaching an out-of-court settlement, newspapers reported Wednesday.

Vedomosti and Kommersant said the gas monopoly had gained control over the Yuzhno-Tambeyskoye field, citing unidentified Gazprom sources and the field’s former owner.

The newspapers said the field held 1.2 trillion cubic meters of gas reserves as opposed to previous reports of 1.2 trillion cubic feet.

The new volume would be enough to supply Europe for three years. Aton brokerage said the development was positive for Gazprom.

“South Tambey will add 6 percent to the Gazprom’s existing reserve base,” Aton Brokerage said.

“This also means that Gazprom is likely to be the only gas producer on the Yamal peninsula, and the almost 5 trillion cubic meters of still undistributed gas reserves would ultimately end up on Gazprom’s books.”

Gazprom had initially planned to buy 25 percent in the firm, which controlled the field, but Vedomosti said it had ultimately agreed to buy full control from the former owner, Nikolai Bogachyov, for undisclosed sum.

Spain’s Repsol said in February that it was considering setting up a joint venture with Anadarko Petroleum and Yuzhno-Tambeyskoye’s license owner for an integrated liquefied natural gas project on Yamal.

Officials at Gazprom were not immediately available for comment Wednesday and it remains to be seen whether the plan to operate the gas field together with foreign partners will survive after Gazprom acquires the field.