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China, Korea possible buyers of Kovykta gas - Gazprom

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A deputy chairman of Gazprom's [RTS: GAZP] board of directors said Monday that China and Korea were among potential buyers of the natural gas to be produced at the Eastern Siberian Kovytka gas field.
MOSCOW, June 25 (RIA Novosti) - A deputy chairman of Gazprom's [RTS: GAZP] board of directors said Monday that China and Korea were among potential buyers of the natural gas to be produced at the Eastern Siberian Kovytka gas field.

"China and Korea are potential markets, and negotiations are being conducted with both," Alexander Medvedev said.

He also said the giant gas deposit would be developed intensively with an eye to demand on Asian markets, as well as to domestic needs.

On Friday, Gazprom announced a deal for the purchase of a controlling 62.9% stake in Kovykta from BP Plc. The British oil major's Russian joint venture TNK-BP still retains an option to buy a 25% plus one share stake in the giant gas field, and it could exercise that option within a year.

Gazprom will pay between $700 million and $900 million for BP's stake in Rusia Petroleum, the company that holds the license for Kovykta.

Medvedev said the Russian gas monopoly did not plan to acquire the stakes of other shareholders in the Kovykta gas field until it finalized the purchase of 63% from TNK-BP in three months' time.

The private investment group Interros has a 25.82% interest in Rusia Petroleum, and the administration of the Irkutsk region, where the Kovykta gas field is located, holds the remaining 11.24% of the stock.

Medvedev also said that Kovykta, whose gas have a high content of helium in it, could be used as the basis for a large chemical facility.

The deposit holds an estimated 2 trillion cubic meters of gas and more than 83 million metric tons of gas condensate.

According to Medvedev, Gazprom expects record-high export revenues in 2007 after

the state-controlled company saw its export revenue grow 42.5%, year-on-year, in 2006, to $37.2 billion.

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