Putin orders faster licensing of Centralnoye

The Centralnoye structure on the Caspian Sea, where Lukoil has been
carrying out geological exploration, has been ordered to be licensed
immediately, RIA Novosti cites deputy head of Gazprom Valerie Golubev,
after a council on Caspian development chaired by Russian Premier
Vladimir Putin.

The license of the operator of Centrcaspneftegaz (joint-venture of
Lukoil and Gazprom) expired on October 30th 2009.

Recent changes in Russian law mean that shelf deposits can only be
developed by state-owned companies. Lukoil asked the Russian
government to make amendments to the law to allow the company to
develop the deposits it had discovered.

However, in June Vice-Premier Igor Sechin said that the government
will not take Lukoil’s right to develop Centralnoye structure, which
is estimated at 169.1 million tons of oil. Centrneftegaz discovered
the deposits in May 2008. The discovery certificate was issued in
November 2008.

Gazprom and Lukoil plan to create a joint-venture between
Centrneftegaz and Kazakh KazMunayGaz as a joint-stock company in order
to get the rights to exploit the deposits, head of Lukoil Vagit
Alekperov said. Lukoil and Gazprom will get 25% of the joint-venture,
KazMunayGaz will get 50%