Russia's TNK-BP says Kovykta unit files for bankruptcy

3rd June 2010, Comments 0 comments

TNK-BP, British oil major BP's venture with a group of Russian billionaires, said on Thursday that the unit which holds the license to the vast Kovykta gas field filed for bankruptcy.

TNK-BP said the RUSIA Petroleum unit is unable to pay off debt to its parent company.

"The current financial situation precludes RUSIA Petroleum from timely repayment of its loans to TNK-BP Group," the company said in a statement.

The loans were made to the subsidiary to finance the development of the vast Kovykta gas field, it said.

"TNK-BP announced its original decision to withdraw from the Kovykta project back in 2007," the statement said.

"As the major shareholder and creditor of RUSIA Petroleum, TNK-BP is determined to recover its investments and minimize its financial losses."

TNK-BP is 50 percent owned by British oil major BP with the other 50 percent belonging to a consortium of billionaire Russian industrialists.

© 2010 AFP

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