Company news in June 2004 | |||
TNK-BP Mid-year Board Meeting
TNK- BP’s Board of Directors held a mid-year meeting in Moscow on Monday, June 21st.
The main business of the meeting was to review the company’s operating and financial performance during the first half of 2004, to confirm plans and projections for the remainder of this year and the future strategy of the company.
TNK-BP’s production, excluding Slavneft, remains on track to meet a targeted 12% annual growth rate. Crude and product exports have been maintained at around 52% of production. Driven in part by the recent high oil price environment, revenues have also seen good growth.
The recent independent audit of the company’s reserves establishing the baseline as of December 31, 2003 was reviewed by the Board in the context of plans for renewal and growth of TNK-BP’s reserves base as production continues to increase. The company’s reserves to production ratio is now targeted at greater than 75% for 2004, leading to full replacement in years thereafter.
Sever al of the company’s major projects were also considered including progress on the Kovykta gas project in East Siberia.
The Board reviewed and confirmed its strategic priorities for the company to grow and produce efficiently; for it to proceed with the work necessary to identify and confirm reserves; for it to improve the quality and efficiency of infrastructure; and for it to invest more than $1billion per year over the next 5 years.
Other important business conducted by the Board included a review of the company’s proposed corporate restructuring plan and implementation schedule.
TNK-BP Chairman, Mikhail Fridman noted; “ We have had an important and a very good Board meeting. The venture is working highly successfully and the Board meeting has confirmed shareholders’ common purpose and direction going forward. I am also pleased that concrete progress is being made in a number of important governance areas, including the simplification of the corporate structure of this complex group of companies.”
Deput y Chairman Richard Olver commented: “ BP is delighted with performance delivery so far and with improvement and progress generally within TNK-BP. I am particularly encouraged by the DeGolyer and MacNaughton reserves audit. I believe the world scale potential of this company, is now independently confirmed; and the company has shown us it knows how to deliver results. I look forward to working with our AAR shareholders and with the Russian authorities to make it real.”
TNK-BP President and CEO, Robert Dudley added; “We have made a good start to the year. Key indicators such as production levels; progress on major projects; reserves replacement and HSE are well on target or above. The challenging 2004 performance targets the Board previously set for the company have been reconfirmed and achieving them will remain our focus in the months ahead.”
Further information is available from:
Vladimir Bobylev: Russian Media ÒNK-ÂÐ – tel. + (7095) 745 7846 ext. 5820.
N otes to Editors
TNK-BP is a major Russian vertically integrated oil company, established in August 2003 as a result of the merger of Russian companies TNK and SIDANCO with BP’s Russian oil assets. The company is 50% owned by BP and 50% by Russia’s AlfaAccessRenova (AAR).
TNK-BP's upstream operations are located in West Siberia, Volga-Urals, East Siberia and Sakhalin. 2003 oil production averaged 1.27 million barrels of oil per day, or 63 million tons per year. The company operates five refineries in Russia and Ukraine, and markets petroleum products through 2,200 branded service stations in Russia and Ukraine. It is one the market leaders in European Russia, including Moscow, and is the market leader in Ukraine.
Source: TNK-BP