Russia 's energy czar Thursday said BP PLC's (BP) joint venture won't face a "vulgar expropriation" of its license for the giant Kovykta gas field.

The Natural Resources Ministry agency that handles licensing, Rosnedra, is currently considering whether to revoke Rusia Petroleum's Kovykta license as the company allegedly is not complying with the terms. TNK-BP Ltd., half-owned by BP, has a 62.8% stake in Rusia Petroleum.

The accrued expenses of the license-holder will be taken into account, and the final solution will be "fair," Deputy Prime Minister Igor Sechin, who has responsibility for energy, told Russian news agencies Thursday in the Siberian city of Nizhnevartovsk .

"TNK-BP will get compensation in any case," said Alexander Nazarov, gas analyst at the Metropol brokerage in Moscow . "The size of the compensation is questionable, but TNK-BP is unlikely lose it for nothing."

TNK-BP Chief Financial Officer Jonathan Muir said this month the company is ready to sell its stake in Kovykta to state-controlled OAO Gazprom (GAZP.RS), adding that TNK-BP has invested $664 million in Kovykta.

TNK-BP had agreed in 2007 to sell its stake in Rusia Petroleum to Gazprom for between $700 million and $900 million, but talks between the two companies broke down.

"There is a speculation that the license will be revoked and then will be given to Gazprom without competition, so that Gazprom avoids paying for it as originally was agreed," said Chirvani Abdoullaev, oil and gas analyst at Alfa Bank. "Gazprom thinks TNK-BP overstates the amount of expenses incurred in Kovykta, as far as I know, and is unwilling to pay up."

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