Company news in 2004

Rospan International CJSC (Yamal Nenets Autonomous Area) performed a unique operation involving large-volume hydraulic fracturing of formation (HFF) in the East Urengoy field last week, informed the enterprise''s chief geologist Vladimir Yarovenko.

Interview of Ms Nadezda Borisova, First Deputy General Director of Orenburgneft OJSC, head of Orenburg-Saratov BU [business unit] business services.

The company TNK-BP Ukraine LLC has started operations on a full scale, press service of TNK-Ukraine Trading House LLC reported 29 June.

The Board of Directors of Orenburgneft OJSC has replaced the company''s General Manager Mikhail Ossipov with Mr. Yury Gryzunov, the company''s official release goes.

A talk with TNK-BP Ukraine President Alexander Gorodetsky on TNK-BP''s establishment and developmental prospects.

Tyumenneftegaz OJSC (makes part of TNK-BP) pushed up crude oil output in the south of the Tyumen Region by 9.3%, to 403,800 tons, in January/May 2004 y-o-y, the company informed on June 24, including 92,100 tons in May, or 15,600 tons more than y-o-y.

Information on the resolution taken by TNK-BP''s Board of Directors to start development of a comprehensive corporate reconstruction plan, which is to be based on establishment of New Russian Holding (NRH) that is to become the core profit center.

Refinement of Orenburgneft''s investment policy evidences the enterprise''s development, pointed out Ms. Nadezhda Borissova, Deputy General Manager of Orenburgneft OJSC and head of business services at Orenburg-Saratov business unit.

Novosibirskneftegaz OJSC (makes part of TNK-BP) is going to certify crude oil production under ISO-14001 in the near future, said the company''s General Manager Sergey Koroliov.

The Russo-British TNK-BP intends to start production in the Kovykta gas and condensate field in 2006, according to the license agreement.

TNK-BP expects to finalize the first stage of corporate reconstruction by the end of 2004. The first stage envisages assessment of the company and patterns to be proposed to minority shareholders as part of reconstruction, informed TNK-BP''s President Robert Dudley at a briefing.

TNK-BP''s Executive Director Victor Vekselberg announced at the yesterday''s news conference of TNK-BP''s management team that Gazexport representatives were included into the TNK-BP/Gazprom joint task group for the Kovykta gas and condensate field development.

Verkhnechonskneftegaz JSC (Irkutsk Region) will draft a business plan for construction of field oil pipeline from the Verkhnechonsk field with annual throughput of up to 400,000 tons of oil by late in July, informed the enterprise''s General Manager Maxim Bezriadin to Interfax Sibir agency.

TNK-BP is going to include the costs of excessive procurement of overalls, footwear, and individual protective devices (IPD) to its personnel into the product cost, informed Mr. Vadim Pimenov, General Manager of CAC - Municipal Appraisal Center (St. Petersburg, CAC – MAC) that participates in substantiation of this resolution.

Sir Paul McCartney gave the only concert in St. Petersburg, in Palace Square, on June 20, as part of his new European 04 Summer Tour.

TNK-BP announced today that it is developing a comprehensive corporate re-structuring plan, based around the creation of a New Russian Holding Company (NRH), which would become the principal profit center for TNK-BP.

TNK is developing cooperation with AvtoVAZ in testing of engine and transmission oils manufactured by TNK. For instance, TNK SUPER OIL semi-synthetic engine oil (SAE10W-40) has passed repeated engine benchmark tests at the Volga Motor Works and obtained a permission, in accordance to which the period of oil replacement at new VAZ cars is equal to 15,000 km.

The results of the Golden Net 2004, the annual all-Russian contest, have been summarized recently. The goals of the contest were exactly implementation of global quality standards in domestic retail, promotion of the modern networks'' stronger positions in trade, public catering and services.

TNK- BP’s Board of Directors held a mid-year meeting in Moscow on Monday, June 21st.

Development of the Kovykta gas and condensate field in the Irkutsk Region is one of TNK-BP''s major gas projects. Conducted prospecting enabled to formally prove natural gas reserves of 2 trillion cubic meters there.

At RUR 47.852 million, net profits of Novosibirskneftegaz OJSC (a subsidiary of SIDANCO petroleum company, which makes part of TNK-BP) climbed 4-fold in 1Q 2004 y-o-y, says the enterprise''s quarterly report posted in the Internet.

The Russo-British TNK-BP has not changed its position with respect to the Odessa/Brody oil pipeline use and still considers its "reverse" direction as the most viable, informed Mr. Alexander Gorodetsky, President of TNK-Ukraine trading house.

On June, 22 the Second Russian Oil and Gas Congress will be opened at Krasnaya Presnya ExpoCenter, simultaneously with the Oil and Gas 2004 international exhibition. Representatives of Russian branch ministries and the Russian Government, top managers of oil and gas companies, including TNK-BP, are expected to speak at the congress.

Saratovneftegaz OJC is going to spend RUR 15.2 million on environmental measures in 2004, a 32% increase y-o-y. In 2005, expenditures on these purposes are expected to amount to RUR 18.7 million.

The Irkutsk Regional Administration has no claims against RUSIA Petroleum OJSC as to its compliance with the license agreement for the Kovykta gas and condensate field development, said Ms. Larissa Zabrodskaya, Deputy Head of the Regional Administration.

Tyumen Petroleum Scientific Center CJSC, a subsidiary of TNK-BP Management OJSC, is proceeding to drawing up draft feasibility studies of TNK-BP''s resource further development lines in the Khanty Mansiisk and the Yamal Nenets autonomous areas.

The television company informs that Rodnikovy Krai, TNK-BP''s charitable foundation, has won the Izhevsk municipal contest of Benefactor of the Year: 2003 in the Social Partner category.

Capital investments into field development boosted daily output in the Ponomariov field of Buguruslanneft NGDU by almost 1,000 tons, to 4,000 tons, which is equal to total output in Buguruslanneft NGDU in 2000, before TNK came to the Orenburg Region.

The article on the meeting of district administration heads of the Orenburg Region with senior executives of the region''s petroleum enterprises, which was initiated by heads of TNK-BP Orenburg Branch.

Saratovneftegaz OJSC has been gradually increasing the scope of pipeline reconstruction and overhauling over the last few years. 38.3 km of pipelines were replaced in 2002, 39.6 km in 2003, and the plan is to renew approx.

A report on Tyumenneftegaz'' performance in January/May 2004. Crude oil output in the fields of the south of the region came to 403,800 tons over five months, a 34.4% growth y-o-y (from 369,400 tons).

An enlarged meeting of TNK-BP''s Board took place in Saratov. Heads of specialty units, refining and sales enterprises of TNK-BP were invited to participate in the event.

TNK-Ukraine Trading House has cut down its wholesale prices for A-95 gasoline from UH 3,550 to UH 3,200/ton and recommends that its jobbers reduce retail prices for it to UH 2.9/liter, informed Mr. Sergey Lizunov, Senior Vice President of TNK-Ukraine Trading House, at a conference with representatives of approx. 50 jobber companies on May 8.

On May 31, President and CEO Bob Dudley addressed the annual seminar of the Moscow School of Political Studies

At 873,456 tons, Tyumennegtegaz OJSC (makes part of TNK-BP) has increased crude oil output by 1.2% y-o-y in January/May 2004, the company informed on June 8.

In 2004, TNK-BP, a Russo-British petroleum company, is going to maintain the practice of exporting over 50% of produced crude oil, writes a corporate magazine Insight TNK-BP with reference to the company''s President Robert Dudley.

The newspaper reports on the visit of Mr. David Campbell, Head of Udmurtia business unit, to the Gremikhino field.

TNK-BP's representatives occupied 5 out of 9 vacancies in the Board of Directors of RUSIA Petroleum (a mineral resource user of the Kovykta gas and condensate field, the Irkutsk Region), the News Service of RUSIA Petroleum informs.

The testing center of LINOS LLC, Lugansk Region, acting on the basis of a the refinery''s central laboratory, has obtained an accreditation certificate under ISO/IEC 17025-2001, the News Service of the Lisichansk refinery informed.

The Environmental Service of Samotlofneftegaz OJSC has developed a special five-year program comprising numerous environment protection and recovery efforts to be taken in the Samotlor field.

An extended workshop/meeting on industrial and environmental safety was held in the conference hall of Varieganneftegaz.

Draft statement of intent, which states the main principles of TNK-BP''s joining the Consortium for East Siberia''s and the Republic of Sakha (Yakutia) Oil and Gas Field Development has been drawn up, informed Mr. Victor Vekselberg, TNK-BP''s Managing Director, Production and Technologies, at a news conference in Irkutsk on Friday.

The Russo-British TNK-BP is still interested in reversing the Ukrainian Odessa/Brody oil pipeline for Russian crude oil supplies, Vice President of the company Alexander Gorodetskiy told to reporters.

ТNK-BP counts that the inter-governmental treaties on gas supplies from the Kovykta gas and condensate field to South Korea and China will be signed by October 2004, informed Mr. Victor Vekselberg, TNK-BP''s Managing Director, Production and Technologies, and Chairman of the Board of Directors of RUSIA Petroleum (a mineral resource user), at a news conference in Irkutsk on Friday.

In 2004, TNK-BP is going to accommodate a loan of $8 million to East Siberian Gas Company OJSC (ESGC, Irkutsk Region, an operator of the gas supplies from the Kovykta gas and condensate field to the marketplace), Mr. Alistair Fergusson, TNK-BP''s Vice President, New Gas Extraction and Sales Project Development, informed at a news conference in Irkutsk on Friday.

TEXACO and TNK Lubricants brands to be marketed separately in Russia, Ukraine and Belarus

Information on Orenburgneft OJSC joining the Vedomosti rating of top 100 East European Companies.

Representatives of Transneft AK and such petroleum companies as Rosneft, LUKOIL, YUKOS, Tatneft, TNK-BP and Surgutneftegaz will participate the inter-institutional meeting on crude oil supplies bypassing Bosporus and Dardanelles straits on June 8, one of the companies told.

A report on the inter-regional scientific and practical conference of TNK-BP''s young professionals, which was held in Buzuluk. 120 professionals representing Orenburg-, Saratov- and Udmurtia-based business units of the company took part in the conference.

The Russo-British TNK-BP plans to increase its total debt by 12.7%, from some US$ 2.85 billion as of the end of 2003 to US$ 3.1 billion, according to a report of Mr. Steve Riddlington, TNK-BP''s Vice President, Finance and Treasury, who spoke on the first annual conference of Treasury and Risk Management in Russia in Moscow on June 2.