Bashneft will not participate in Imilorskoye auction, might join alliance with winner - Evtushenkov
MOSCOW. Dec 5 (Interfax) - Bashneft does not plan to submit an application to participate in the auction for the largest field in Russia's unallocated fund - Imilorskoye in the Khanty-Mansiisk Autonomous District, Chairman of the Board of Directors of AFK Sistema (a Bashneft shareholder) Vladimir Evtushenkov told the press.
"We've made the decision to not go yet," he said, adding, however, that Bashneft might join an alliance with the winner of the auction.
"I don't rule that out, some alliances are possible," Evtushenkov said.
Bashneft based its decision on the high starting price and large number of contenders for the field. "It's expensive and the competition is high," he said. "Alliances help reduce financial risks and political risks," Evtushenkov added.
Lukoil President Vagit Alekperov previously told the press that his company plans to participate in the auction. Rosneft has also considered the possibility.
The starting payment for the Imilorsky section, which includes the Imilorskoye, West Imilorskoye and Istochnoye fields in the Khanty-Mansiisk Autonomous District, is 25.4 billion rubles. As of January 1, 2011, the government balance for the three fields included in-place C1 oil reserves of 287.372 million tonnes, in-place C2 oil reserves of 568.087 million tonnes, C1 recoverable oil reserves of 66.278 million tonnes and C2 recoverable oil reserves of 127.404 million tonnes.
The auction will be held on December 25.
