Following is a letter sent to the Editor of the Financial Times:
Sir,
While I have been critical about what is going on in Russia, in this case the Russian authorities may have a point ("BP facing growing pressure over Kovykta field" Financial Times, February 27, 2007).
TNK-BP entered into commitments with the Russian government in order to obtain rights over a particular venture. Now that TNK-BP does not wish to or cannot fulfill its commitments, it is trying to agree changes to the contract.
The Russian government has every right to take the position that, if the company does not fulfill its contractual obligations, then they will put the venture out to tender once again.
This sounds like the free market thing to do, rather than agreeing changes in smoke-filled rooms.
Onésimo Alvarez-Moro
See article:
Russia stepped up pressure on a key asset held by TNK-BP, BP’s Russia venture, as Lord Browne, BP chief executive, arrived in Moscow for talks and the end-game neared for a possible transfer of part of a key asset to the state.
Oleg Mitvol, the official who led the state campaign against Shell’s oil and gas venture in Sakhalin2, said Russia’s Natural Resources Ministry would not budge on threats to revoke TNK-BP’s licence to develop its vast east Siberian Kovykta gas field in three months time.
See full Article (paid subscription required).
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