Posted by: russiaoilandgas | July 27, 2007

TNK-BP to Invest up to $1 bln as Kremlin gets Tough on Gas Flaring

Associated Petroleum Gas Flare BP Gussia Oil GazpromTNK-BP will press on with their gas utilisation program which runs until 2010, Reuters reported yesterday.  Speaking to Reuters, TNK-BP executive vice president for production, Sergei Brezitski, said “We have a programme of over $500 million approved by the board and could expand it potentially to $1 billion”.

Oil and Gas Eurasia reported recently that Russia wastes $14.22 billion annually through the flaring of associated petroleum gas – the equivalent of the total reserves left in a large gas field.  It seems the Kremlin is now set to toughen up their stance against companies involved in this practice, as Reuters reports that Vladimir Putin has promised to take tough action against companies flaring gas and the Natural Resources Ministry is now working on an enforcement plan.

Although Reuters has revealed that some analysts believe the measure may be designed to help Gazprom cover gas shortages by buying gas captured for oil firms at low process, TNK-BP argue that their program is not politically motivated and is economically viable.

Source: Reuters (http://investing.reuters.co.uk/news/articleinvesting.aspx?type=allBreakingNews&storyID=2007-07-26T130227Z_01_L26829011_RTRIDST_0_TNKBP-GAS-UPDATE-1.XML&pageNumber=0&imageid=&cap=&sz=13&WTModLoc=InvArt-C1-ArticlePage2)

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