Oilfield services

TNK-BP has completed withdrawal from the oilfield service business in July 2009. The company intends to focus on its core activity, i.e. production, processing and sales of oil and petroleum products. The disposal of oilfield service assets will also allow TNK-BP to improve efficiency of its business, provide access to state-of-the-art drilling rigs, drilling and workover equipment and services, and contribute to the development of market competition and engagement of recognized international service companies to work in the Russian market.

In recent years, TNK-BP oilfield service business was focused on increasing service efficiency and value for Upstream. TNK-BP had ten oilfield service subsidiaries located in Orenburg Oblast and Khanty-Mansiyskiy Autonomous Area.

They provided the following services:

• drilling;
• well servicing and workover;
• sidetracking;
• cementing.

The total personnel headcount was ca. 7,000 persons.

The key objectives for TNK-BP Oilfield Services were as follows:

• improving service performance and quality;
• consolidating business assets;
• leadership in health, safety and environment.

The corporate risk management system was implemented, a series of technical audits was conducted, significant progress in reducing the number of major and serious incidents was achieved, and a program of cooperation with Russian educational institutions was performed in all of the Oilfield Services subsidiaries.

TNK-BP has reached agreement to sell its oilfield service business to Weatherford International in May 2009. The deal was endorsed by antimonopoly authorities and closed in July. As a result, TNK-BP received the priority right to engage Weatherford as a contractor to provide drilling rigs and leading edge technology.