BP PLC's (BP) Russian joint venture TNK-BP Holding (TNBP.RS), which is locked in a shareholders' conflict, is in talks with the government of Turkmenistan on possibly developing oil and gas fields in the north of the country, people familiar with the matter told Dow Jones Newswires Monday.
The talks, which started as early as last year, are still in preliminary stages, the people said.
BP, which owns 50% of TNK-BP, is also in talks with the government of the Central Asian country, BP confirmed, but declined to provide further details. A person familiar with the matter said that BP's talks are focused on developing oil and gas offshore fields in the south of the country.
BP is locked in a shareholder dispute with the other major holder in TNK-BP, a consortium of Russian investors, in which the Russians have accused the British oil company of, among other issues, preventing the company's expansion abroad.
However one person said that TNK-BP's ambitions in Turkmenistan pose little risk of further deepening the spat as the companies will not be in direct competition with BP. According to the person, TNK-BP has no intention to go into offshore projects as it lacks technical experience.
BP wouldn't be able to win any onshore projects in Turkmenistan, as only offshore fields are currently open to western companies for production sharing agreements or joint ventures