Foreign Investors May Participate in Trebs and Titov Auction

Posted by

Aug. 12 – Russia’s official government web site has published conditions under which a license to the strategic Trebs and Titov oil and gas fields in the Arctic north will be put up for auction.

According to the document, 15 percent of oil extracted from the strategic deposits will be sold out at the Russian stock exchange and 42 percent will have to be processed domestically.

Experts believe these conditions may reduce attractiveness of the project for foreign investors.

The Trebs and Titov field is listed in Russia as a strategic asset and is considered to be one of the biggest in the country. Two deposits will be put up for sale in one lot at a starting price of US$586 million. The auction is scheduled for December 2, but bids must be submitted by September 20.

“The deposits are classified as strategic, since the total reserves exceed 70 million tons, but foreign investors can participate in the tender in association with a Russian state-run company; which should have a controlling stock,” an official from the Ministry of Natural Resources and Environmental Protection explained to Russian daily Kommersant.

Deposits are located 163 kilometers from the village of Kharyaga, where the main pipeline passes. The maritime port of Varandei also sits 60 kilometers from the fields and is capable of receiving large tankers.

Representatives of state-run Lukoil, Rosneft, Gasprom Neft, TNK ВР and Bashneft have confirmed their interest in the project yesterday, but the final decisions will be made only after studying tender conditions.

India’s state-run Oil and Natural Gas Corp. has already expressed interest in the oil and gas fields and is now looking into the possibility of bidding jointly with state-controlled Rosneft, Vedomosti reports, citing two sources close to both companies. ONGC and Rosneft are partners in the Sakhalin-1 project, each with a 20 percent stake in the operating company.

“In all likelihood, Gasprom Neft will collaborate with a foreign company,” a Gasprom Neft official said to Vedomosti without naming the possible partner.

Leave a Reply

Your email address will not be published. Required fields are marked *