Russian natural gas producer OAO Novatek and French energy giant Total SA face possible revocation of their license to develop a gas condensate field in Russia's Arctic region, business daily Vedomosti reports Tuesday. On Monday, the Federal Service for Oversight of Natural Resources posted on its website the numbers of licenses it said were being referred to license-granting agency Rosnedra for early withdrawal. One of these was the license held by Terneftegaz, the Novatek-Total joint venture for exploring and developing the Termokarstovoye field in Russia's Yamal-Nenets Autonomous Region. The venture, praised by Prime Minister Vladimir Putin upon its 2009 launch as "a good project," is 49%-owned by Total, which paid $16 million and is considering a further $8 million investment. The partners plan to invest $1 billion in the field, with production to start in 2012.
A spokesman for the resources agency wouldn't comment to Vedomosti about any objections there might be regarding Terneftegaz's license. An official with the agency, however, said the release of Monday's list involved some kind of mistake, the newspaper says. The agency's board isn't scheduled to meet until next week. A total spokesman declined to comment, but a spokesman for Novatek was surprised by Monday's development. "There is no basis for this decision," he said, stressing that the partners had addressed in detail all potential concerns in their license application. "If this decision stands, there can be only one explanation: For some reason, someone didn't read our answers," he said.
