Korean consortium loses rights to Russia oilfield
Friday, 15 August 2008
SEOUL, Aug 14, (AFP): A South Korean-Russian consortium has lost its licence to explore and develop a huge offshore oilfield in Russia's west Kamchatka, a state petroleum company said yesterday.
The Korea National Oil Corp (KNOC) said the Russian government last month rejected a request to extend a five-year licence granted to the consortium led by KNOC and Russia's state- run Rosneft.
Unless KNOC can persuade Moscow to change its mind, an estimated 259 million dollars already spent on exploration and drilling will go to waste, Chosun Ilbo newspaper reported. The oil company declined to say how much has been spent so far. Rosneft has a 60 per cent stake in the consortium, and KNOC and six other South Korean firms share the rest.
KNOC said Moscow cited the consortium's failure to carry out three obligatory test drillings, two of them in 2007 and one in 2008.
"The obligatory drilling could not be carried out because of circumstances beyond our control," it said in a statement.
KNOC noted that Moscow puts limits on foreign companies from exploring resources in areas above the 57th latitude. West Kamchatka is located between the 54th and 57th latitude.
The Korea National Oil Corp (KNOC) said the Russian government last month rejected a request to extend a five-year licence granted to the consortium led by KNOC and Russia's state- run Rosneft.
Unless KNOC can persuade Moscow to change its mind, an estimated 259 million dollars already spent on exploration and drilling will go to waste, Chosun Ilbo newspaper reported. The oil company declined to say how much has been spent so far. Rosneft has a 60 per cent stake in the consortium, and KNOC and six other South Korean firms share the rest.
KNOC said Moscow cited the consortium's failure to carry out three obligatory test drillings, two of them in 2007 and one in 2008.
"The obligatory drilling could not be carried out because of circumstances beyond our control," it said in a statement.
KNOC noted that Moscow puts limits on foreign companies from exploring resources in areas above the 57th latitude. West Kamchatka is located between the 54th and 57th latitude.