"If the license is revoked, it [the Kovykta deposit] will be put up for auction as a strategic deposit, where foreign investment is not permitted," Yury Trutnev said, referring to the bill prohibiting foreign investors' control of major deposits, which is expected to be adopted this year.
Russia's mineral resources watchdog gave Rusia Petroleum, the operator of the TNK-BP-led project to develop the gas deposit with 1.9 trillion cubic meters of proven reserves, three months to meet its license obligations to increase production and supply areas around Kovykta with gas.
The Federal Agency for Subsoil Use warned the company could otherwise be stripped of the license, adding similar warnings to the operator have been issued since 2004.
Trutnev, accompanying the Russian premier on a visit to Angola, said the operator would hardly meet the deadline by late May.
"I believe they have not enough time to rectify [the violations]. Is it possible to increase output by 9 billion cubic meters in two months' time? They failed to do that in the last several years," the minister said.
Rusia Petroleum had repeatedly requested that changes be made to the amounts specified in the license, which the authorities denied.
Kovykta is important to the Russian government, which is pursuing an ambitious project to build a gas pipeline network to meet Asian nations' energy needs and to diversify its export destinations.
State-controlled Gazprom [RTS: GAZP] is interested in joining the Kovykta gas project. The Russian energy giant and TNK-BP are discussing a joint project to build a unified network for upstream and downstream operations, and gas transportation in East Siberia and the Far East.
Late last year, Gazprom acquired 50% plus one share in Sakhalin II, the vast hydrocarbon project in the Far East, from Shell and other companies involved. The deal came following months of pressure on the operator over environmental violations and financial issues, but was seen by many as part of the Kremlin's drive to regain control of mineral resources.
Another U.S. oil giant, ExxonMobil, and France's Total are also experiencing difficulties in Russia, with their projects - Sakhalin I off the Pacific coast and Kharyaga oil field in northern Russia respectively - being under scrutiny.
