TN PETRÓLEO

European Union Commissioner Andris Piebalgs said Monday the Commission "welcomes" Friday`s agreement between BP PLC (BP) and OAO Gazprom (GSPBEX.RS) over the giant Kovykta gas field in Eastern Siberia.

"The deal recognizes investments already made by TNK-BP in the Kovytka project," Piebalgs said in a statement.

"The Commission expects this agreement will have a positive impact on the investment climate in Russia," Piebalgs added. Friday, BP said it agreed to sell its controlling stake in Kovykta to Gazprom for between $700 million and $900 million and start a new $3 billion cooperation deal with the Russian gas producer.

The agreement followed months of increasing administrative pressure from the Russian government on Rusia Petroleum, a company 63%-owned by BP`s Russian arm, to remedy violations of its license conditions or face the loss of the license.

Under the Friday agreement BP and Gazprom will also set up a joint venture aimed at expanding Gazprom`s presence in international markets.

Piebalgs said the agreement "will thus contribute to the E.U.`s security of supply."