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Watchdog to resume license checks at East Siberia oil fields

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ST. PETERSBURG, April 10 (RIA Novosti) - Russia's mineral resources watchdog will resume probes into compliance with license agreements on oil fields in East Siberia in May-June 2007, a deputy chief of the regulator said Tuesday.

"We will conduct new checks on 23 sites and revoke licenses if the companies have failed to do anything," Vladimir Smolin said, adding that violations had been found at 23 out of 52 sites in East Siberia.

"Results of the checks on 23 sites have been submitted to the Federal Agency for the Management of Mineral Resources, and companies have been notified," he said, adding that the bankrupt oil company Yukos [RTS: YUKO] was a major violator.

"Yukos is a leading violator, and it operates about 70% of proven reserves in East Siberia," he said.

Minister of Natural Resources Yury Trutnev said Tuesday new owners of Yukos, whose assets are being auctioned off, would not have their licenses withdrawn after the auction. "I don't think the new operator will have the licenses revoked," he said, adding that all companies would be treated equally.

Yukos's East Siberian assets will be auctioned May 3. Once Russia's largest oil company, Yukos was declared bankrupt August 1, 2006, after three years of litigation with tax authorities over tax arrears.

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