Exploration and production | |||
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TNK-BP controls a large and diversified exploration and production portfolio, which provides the company with considerable short-, mid- and long-term growth opportunities. Its production assets include both developed and undeveloped fields. Production growth will be supported by the implementation of new yield-enhancing technologies and optimization processes in developed fields. In the future, the development of new assets will also contribute to further production growth.
Reserves
The latest audit confirms that as of December 31st 2008, TNK-BP’s Total Proved Reserves were 10.252 billion barrels of oil equivalent, applying PRMS (formerly SPE) criteria. This represents a Total Proved PRMS reserves replacement ratio of 146% in 2008.
Beyond the proved PRMS reserve additions, about 530 million barrels of non-proved oil reserves were added through exploration and appraisal activities, marking another successful year of resource renewal.
Under SEC methodology on a life of field (LOF) basis, TNK-BP’s Total Proved Reserves were 8.112 billion barrels of oil equivalent. The addition of 494 million barrels of new Proved Reserves constitutes a Total Proved SEC (LOF) reserve replacement ratio of 82%. The average SEC LOF reserve replacement ratio over the past five years amounted to 133%.
TNK-BP reserves, bn boe
| Reserve | 2004 | 2005 | 2006 | 2007 | 2008 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| SPE | SEC LOF | SPE | SEC LOF | SPE | SEC LOF | PRMS (formerly SPE) | SEC LOF | PRMS (formerly SPE) | SEC LOF | |
| Proved total | 9.082 | 8.017 | 9.229 | 8.230 | 8.95 | 7.81 | 9.982 | 8.225 | 10.252 | 8.112 |
Production
TNK-BP has seen double-digit growth in output on its asset fields in the last few years. The significant growth was primarily due to the efficient use of production enhancement technologies and waterflood management system at mature fields. The ñompany specialists have also achieved major exploration success at TNK-BP key fields. While in 2001 TNK-BP production (excluding Slavneft) was 1.04 mmbd (52 mmtpa), in 2008 it reached 1.45mmbd (or almost 70.5 mmtpa).
One of the advantages of TNK-BP production assets is that over 50% of total production comes from five of its largest fields, creating a considerable synergistic effect.
The company is planning to maintain the current production levels through 2009.
Gas
Even though TNK-BP has currently no considerable proven gas reserves under PRSM and SEC methodologies on its balance sheet, the company produces some 9 billion cubic meters of associated gas annually. The company has mid- and long-term options for the development of its gas business, which will be implemented subject to the development of a market for independent gas production and distribution.
Currently TNK-BP is selling over 11 billion cubic meters of gas a year, the majority being associated gas. Mid-term prospects for TNK-BP gas business development are based on the development of Rospan gas and condensate production assets located in the Nadym-Pur-Taz Region. TNK-BP is planning to build Rospan production capabilities as the Russian gas market demand evolves. The scale and timing of the future development of Rospan depend on the access to the pipeline system.