ROSPAN INTERNATIONAL

TNK-BP subsidiary ROSPAN INTERNATIONAL holds licenses to develop two gas and condensate fields, Vostochno-Urengoiskoe and Novo-Urengoiskoe, in Yamalo-Nenets Autonomous District. The estimated reserves are 891 billion cubic meters of gas and 133 million tons of gas condensate.

ROSPAN INTERNATIONAL was established in 1994. TNK acquired 44% equity in 2002, and became 100% owner in 2004.

Rospan is developing the deep gas reserves of the Valangin and Achimov formations in the Novo-Urengoiskoe and Vostochno-Urengoiskoe license blocks. Pilot operations are currently under way. TNK-BP invested $51M in 2008 and $77M in 2007 in Rospan development. The investment was used to upgrade the existing equipment, set up new wells and interpret 3D seismic data.

Rospan gas sales totaled 1.5 billion cubic meters in 2007 and 2.5 billion cubic meters in 2008.

In December 2007 TNK-BP reached an agreement with Gazprom’s subsidiary Mezhregiongas to create a joint venture to market Rospan’s gas and condensate. The JV started operations in March 2008 and sells gas to industrial and commercial customers at market terms. The primary goal of the JV is to create a basis for further development of Rospan and increase its production over time. Creation of the JV allows TNK-BP to benefit from the Mezhregiongas’ marketing expertise and deep reach into the regional markets.

TNK-BP is working on the full field development planning. As part of the project, TNK-BP has received specifications for a tie-in to Gazprom trunk pipeline to transport sales gas and has completed route surveys required to start the gas pipeline design.

ROSPAN INTERNATIONAL General Director — Rustem Bakirov.