Russia's state-controlled gas producer OAO Gazprom (GAZP.RS) will pull out of an agreement to buy a stake in the giant Kovykta gas field from TNK-BP Holding (TNBP.RS), if the license for the field isn't extended, Gazprom spokesman Sergey Kuprianov said Friday.
"If the license isn't extended, then there is nothing for us to buy," said Kuprianov.
Gazprom and TNK-BP, which holds a 63% stake in the Kovykta field through its majority-owned subsidiary Rusia Petroleum, have been in talks over the Kovykta field for more than a year.
In 2007 U.K. oil major BP PLC (BP), which holds a 50% stake in TNK-BP, planned to sell its stake in Kovykta to Gazprom for about $900 million and form a $3 billion international strategic alliance with the Russian gas monopoly. Talks between the two companies are still underway.
Gazprom also said that if the deal goes through, it will happen within the next week.
Russia's Natural Resources Ministry has accused TNK-BP of not honoring their license commitments. Thursday, Resource Minister Yury Trutnev said he sees no reason to renew the license to the Kovykta field. The ministry will finish an inspection of the field Monday.
Earlier Friday, the Financial Times cited a Gazprom executive as saying the company is worried about overpaying for a potentially worthless asset.