BP’s Russian business TNK-BP has agreed to sell to Russian gas giant Gazprom its 62.89 percent stake in Rusia Petroleum, the company holding the license for the Kovytka gas field in East Siberia.

Gazprom will pay between $700 million to $900 million for TNK-BP’s interests in Rusia and ESGCo. TNK-BP will also sell its 50 percent interest in East Siberian Gas Co. (ESGCo), a company building regional gas infrastructure.

TNK-BP said a longer-term ‘call’ option for TNK-BP to buy a 25 percent plus one share stake in Kovykta had also been agreed.

This option could be exercised once a significant joint investment or asset swap has been agreed under the terms of a memorandum of understanding signed Friday, whereby Gazprom and BP will jointly invest in projects of the $3-billion range or swap assets around the world.

A BP-Gazprom team will screen Russian and international projects.