BP plc will likely lose its license for the giant Kovykta gas field on Friday, although the Russian government may postpone the recall until after the G8 Summit in St. Petersburg on June 10. The state licensing agency is set to meet at 8:00 GMT to review the issue. "We believe the delay in a final decision is plausible, but ultimately the license is likely to be recalled," said Steven Dashevsky from Aton brokerage. The Vedomosti daily newspaper quoted a source as saying that the licensing agency (Rosnedra) might postpone its decision on Kovykta until the end of the Russian Economic Forum. The $20 billion Kovykta field holds enough gas to supply the entire world for a year. Earlier this year, Russia's environmental agency accused TNK-BP of underproduction; BP was to export its production to China, but was forced to reduce its production after state-run Gazprom banned the plan, which conflicted with its own project to supply China. BP has tried to save the massive project by ceding control to Gazprom, but Gazprom says the field is too risky for its interests. "Even though the chances for a precedent-setting license repeal... are high, we still hope that TNK-BP and Gazprom can find a last minute solution," said Oleg Maximov from Troika Dialog.
Commentary: The New Seven Sisters: Today's Most Powerful Energy Companies • BP : Trouble On Two Shores • With So Much Negativity, BP 's Worth a Look
Stocks/ETFs to watch: BP plc (BP)
Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.