Moscow says stop to Timan Pechora alliance

With its decision, the agency returns the licenses to the two major oil fields to Bashneft, the company which originally won the license tender in 2010.

As previously reported, Bashneft in 2011 decided to team up with Lukoil in the development of the fields. The field liceses were transferred to the subsidiary company Bashneft-Polyus, where Lukoil subsequently acquired a 25,1 percent stake. With the establishment of the joint venture, Bashneft would get access to Lukoil’s well-developed infrastructure in the oil-rich region, including the Varandey terminal on the coast of the Pechora Sea.

The transfer of the licenses to Bashneft-Polyus and the inclusion of Lukoil was however disputed by a 0,002 percent minority owner of Bashneft, who soon brought the case to the political level. The minority shareholder argued that Lukoil could not be a licenseholder of the strategic resources, because it is more than 10 percent owned by foreigners, Vedomosti reports.

The complaint is what tore apart the Bashneft-Lukoil alliance in the Timan-Pechora province. However, the two companies might still find alternative ways to cooperate. According to a press release issued by Bashneft, talks with Lukoil on a renewed possible cooperation will soon be held. The two companies’ cooperation will facilitate the most efficient development of the fields, the company argues.

As previously reported, a major oil spill took place at the Trebs field in April this year.