History of TNK-BP

On 1 September 2003, BP and Alfa, Access, Renova (AAR) announced the creation of a strategic partnership to jointly hold their oil assets in Russia and Ukraine. As a result, TNK-ВР was created. Today, TNK-BP is Russia’s third largest oil company in terms of reserves and crude oil production.

ВР and AAR each own an equal interest in TNK-BP. ААR contributed its holdings in TNK International, ONAKO and SIDANCO, its share in RUSIA Petroleum (which holds licenses for the Kovykta gas condensate deposit and the Verkhnechonsk oil and gas deposit), its stake in the Rospan gas field in West Siberia (the New Urengoy and East Urengoy deposits).

BP contributed its holding in SIDANCO, its stake in RUSIA Petroleum and its BP Moscow retail network. In January 2004, BP and AAR reached an agreement to incorporate AAR’s 50% stake in Slavneft into TNK-BP. Slavneft, which has operations in Russia and Belarus, was previously owned jointly by AAR and Sibneft (now Gazprom Neft).

In 2009 TNK-BP increased production 1.69 mboe /d (excluding TNK-BP’s share in Slavneft production) compare to 1.642 mboe/d produced in 2008.

In the near term, TNK-BP will continue to develop its brownfield base, managing decline rates and ensuring reserves replacement rate in excess of in-year production. Simultaneously, we will continue to develop new greenfield projects to ensure sustainable growth in the longer term. It will be provided primarily through the development of the Uvat project in the south of the Tyumen Region which was launched in February 2009, of the Verkhnechonskoye deposit in the Irkutsk Region which was launched in October 2008, and of the north production center of the Kamennoye deposit in the Khanty Mansiysk Autonomous District which was commissioned in May 2009. Prospectively, TNK-BP aims at developing its projects in the north of the Krasnoyarsk Territory.

In 2009, our total proved reserves replacement ratio reached 329% according to PRMS methodology (formerly known as SPE). The average SEC LOF reserve replacement ratio over the past five years amounted to 139%.