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Watchdog insists on revoking LUKoil licenses in West Siberia

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MOSCOW, October 13 (RIA Novosti) - Russia's environmental protection agency has proposed revoking a number of licenses of the country's largest crude producer, LUKoil [RTS: LKOH], in two regions in Western Siberia, the Natural Resources Ministry said Friday.

A special commission, led by Oleg Mitvol, deputy head of the Federal Service for the Oversight of Natural Resources, arrived in the region Thursday to conduct an investigation at LUKoil's production sites.

"Based on the results of the inspections in the Khanty-Mansi Autonomous Area, the Federal Service for the Oversight of Natural Resources adopted a decision to demand the revocation of production licenses issued to two LUKoil subsidiaries, Khantymansiiskneftegasgeologiya and Nazymgeodobycha," the ministry said in a statement.

The environmental watchdog has already submitted documents to the Natural Resources Ministry demanding the revocation of eight LUKoil's production licenses.

The ministry decided to set a three- to six-month deadline for LUKoil to deal with violations or face license revocation.

"If our directives are not carried out, the licenses will be revoked," the statement said.

The environmental protection agency is also considering the revocation of a number of LUKoil's licenses for the surveying and production of hydrocarbons at 11 oil extraction sites in the Komi Republic.

The inspection team discovered that the company did not comply with oil production licensing agreements and requirements for developing oil extraction sites. The environmental watchdog also demanded that LUKoil deal with uncovered violations, and has set a deadline beyond which the licenses will be revoked, the ministry said in a statement.

The Natural Resources Ministry has revoked 80 licenses on various business activities in Russia since the beginning of 2006.

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