Green challenge looms.(TNK-BP)(Brief Article)

TNK-BP faces a huge ecological challenge that could push up costs.

BP estimates that TNK-BP will have to spend $1bn over i0 years to cover environmental liabilities--a major concern given the poor environmental reputation of the assets it is taking on board. Investment bank CSFB has welcomed BP's "pragmatic" assessment. But other analysts are concerned that BP may be underestimating the amount.

A report carried out two years ago by Dutch consultants Iwaco on behalf of Greenpeace highlights the scale of the environmental problem. The report focuses on Nizhnevartovsk, western Siberia, which includes the Samotlor oil field. Iwaco estimates that soil over …