Ultimately, British oil giant BP is knees down before Russians as it has agreed to sell its stake in Kovykta field to Gazprom. BP, which drilled oil in Siberian oil field with Russian driller TNK, will get $700 million to $900 million for its 62.89 percent stake in the Kovykta gas field. Precise price would be fixed in 90 days whereas BP had already invested about $500 million in the field. Analysts impeached that sell out money is only a fraction of what TNK-BP’s stake is worth, and that it is the latest example of the Kremlin forcing out Western energy firms. After dejected from the lucrative pie of the Russian oil sources British company will continues to have major oil holdings here, which account for 10 percent of its global revenue and to soothe dejected oil driller, it will have an option to purchase a 25 percent stake in the field within 12 months, which might allow it to share in potentially vast profits. In the addition of agreement, BP and Gazprom also agreed to invest at least $3 billion jointly in energy projects in Russia and around the world. All these development occurred as Russian government start taking its shares back from the western oil drillers. Shell has already thwarted from the Russian soil, whereas BP was alleged to not producing enough oil from the Kovykta field as it produced only 2.5 billion cubic meters of gas in 2006, which was much lower than permitted nine billion cubic meters. Russian officials pressed hard on it at confiscated its license to further drilling oil in Russia. BP drags Russian authority to court and claimed that it could not produce any more because the local region did not require additional supplies and it had been denied an export license. After throwing two western oil giant from the Russian territory, now doubts on another oil giants ExxonMobil are gearing up. Although ExxonMobil is confident for its future in Russia, if it happens, oil driller threatens, than investment in the country would be jeopardized. Image: Thedesignblog Via: NYTimes