Company news in 2005

Viktor Yushchenko, President of Ukraine, had a meeting with German Han, Executive Directors of TNK-BP Management, and Alexander Gorodetsky, President of TNK-BP Ukraine, on Tuesday.

The Administration of the Irkutsk Region is going to withdraw from the regional Court of Arbitration its claim to OAO East Siberia Gas Company (established on parity basis by TNK-BP and the Irkutsk Region Administration) about the alleged unlawfulness of transferring the 11.29% parcel of OAO Verkhnechonskneftegaz shares previously owned by the regional administration into the authorized capital of the East Siberia Gas Company, said Alexei Sobol, General Director of the East Siberia Gas Company, to Interfax.

Brunswick UBS proceeds from analyzing the shares of OAO Tyumenskaya Neftyanaya Kompaniya (TNK) to analyzing the securities of OAO TNK-BP Holding, informs the overview of Brunswick UBS dedicated to the TNK-BP Holding.

The Government of the Republic of Udmurtia and TNK-BP signed a 2006 cooperation agreement in Moscow on December 14. The signatories to the Agreement are Alexander Volkov, President of Udmurtia and German Khan, Executive Director, TNK-BP.

Within the framework of the Lisichansk Refinery / Lisichansk, Lugansk Oblast, Ukraine/ construction of a sewage biochemical treatment complex for the second sewage system has been launched, according to the data provided to PRIME-TASS Monday by the PR Director of TNK-BP Ukraine.

TNK-BP has become laureate of the “Company 2005” award for the “Industry – Fuel-Energy Complex” nomination.

TNK-Uvat, a subsidiary of TNK-BP, acquired at a tender on Thursday four oil-bearing land plots areas in the south of the Tyumen Region for 632 million rubles: the Gerasimovsky, West Gerasimovsky, East Gerasimovsky, and Katyssky land plots.

Last year, Governor Matvienko received her colleague Sergey Sobyanin, governor of the Tyumen Region, in Saint Petersburg and asked him to help preserve the cultural wealth and memory of Russia embodied in the architecture of Saint Petersburg. Sobyanin appealed to Tyumen oilmen, and TNK-BP was the first to come forward.

The internal gas demand of the regions of East Siberia and Far East until 2020 amount to just 20 billion cubic meters and cannot be considered as the consumer base for the development of fields in East Siberia and Far East, said Viktor Vekselberg, Executive Director, Gas Development, TNK-BP, at the parliamentary hearings “Oil and Gas Resources of East Siberia and Far East as the Region Development Basis.”

China confirmed its willingness to buy 20 billion cubic meters of gas from Kovykta beginning from 2010 in addition to the volumes of gas supplied from Sakhalin, said Viktor Vekselberg, Executive Director, Gas Development, TNK-BP.

TNK-Nizhnevartovsk, one of the oil production subsidiaries of TNK-BP, received a certificate of compliance with the international environmental protection standards. This certificate is an international recognition of the high-quality work of environmental protection experts of the company on its construction and development sites and high appreciation of the environmental protection service of TNK-Nizhnevartovsk.

The Russian-British oil company TNK-BP was awarded by the British Energy Institute for the safety and environmental protection standards used in the activities of the company on Volga River.

The Russian-British oil company TNK-BP was awarded by the British Energy Institute for the safety and environmental protection standards used in the activities of the company on Volga River.

The Lisichansk Oil Refinery (LLC “LINOS”)  became the first in the Lugansk Region and the fifteenth enterprise in Ukraine to be awarded a certificate of the Occupational Health and Safety Assessment Series OHSAS 18000.

The Technical Council of East Siberia Gas Company, the operator of Irkutsk Region gasification project based on the development of the Kovykta gas condensate field, approved the Kovykta–Sayansk–Irkutsk gas pipeline construction feasibility study and submitted it to the state authorities for endorsement, informed the company press service.

Robert Dudley, TNK-BP President and CEO, has won the Aristos 2005 Award as “Russia’s No. 1 Expatriate Manager.” TNK-BP CEO received this special award from the Russian Managers’ Association (RMA) at the Russian Business Leadership Awards Ceremony.

The Saratov Refinery is now one of the leading industrial enterprises in the region. Last year, the refinery processed more than 5.5 million of oil, and the utilization of the refinery capacity grew by 18.8%. Three products of the refinery – roll roofing material, winter diesel fuel, and automobile gasoline – became laureates and winners of the contest “100 Best Products of Russia.” The Saratov Refinery is going to go further towards even better results.

A regular meeting of the regional Coordination Council of TNK-BP was held in Orenburg today under the chairmanship of Mugammir Galiullin, Chief Engineer of Orenburgneft. The main issue discussed at the meeting was the implementation of the agreement of cooperation between TNK-BP and the Administration of the Orenburg Region.

Today Alexei Chernyshev, Governor of the Orenburg Region, had a meeting with German Khan, Executive Director of TNK-BP. In his comments on the results of this meeting, Alexei Chernyshev said that the agreement between the Administration of the Orenburg Region and TNK-BP is being implemented with a considerable lead in the stipulated indicators, especially the growth of payments into the consolidated budget of the region.

Initiation of young professionals into oilmen has become a good tradition in TNK-BP and an integral part of its corporate culture. This year, the initiation program included communication with the Company management, introduction to the history, main goals and development strategy of TNK-BP, and panel games of young employees. 193 young people from the TNK-BP companies in Nizhnevartovsk, Raduzhnyi, Nyagan, Tyumen, and Novosibirsk were initiated into oilmen this year.

The oil company TNK-BP announced the contest of the grant program New Generation, which has become a good tradition now. The program supports the public, state and municipal organizations that render help to the oncoming generation.

TNK-BP, a young and dynamic company, pays particular attention to the human resources policy and, first of all, to young professionals. Building up and running a stable business in the regions of Company presence implies attraction of energetic, motivated and highly skilled specialists. Young professionals with their fresh knowledge and juvenile ardor have the audacity and fervor to tackle the most complex industrial problems.

Unified accounting centers provide the headquarters of holdings with the required control over the financial flow of their subsidiaries. However, accounting centralization glitches because of the legislative barriers and local reluctance. TNK-BP introduced a special accounting model and managed to go around the obstacles.

The Russo-British company TNK-BP is planning to pump around 6 mln t of oil along the Odessa – Brody oil pipeline in the direction of Odessa during 2005. This was reported to “Ukrainskie Noviny” by the Deputy Director of TNK-BP Ukraine’s Advertising and Public Relations Department, Irina Kovalchuk.

An extended session dedicated to the industrial safety of the East Business Unit divisions and contractors was held in Nizhnevartovsk. TNK-BP gives a very high priority to health, safety and environmental protection. The standards adopted by the Company are fully applied to all contractors irrespective of their fields of activities.

TNK-BP is developing and implementing a uniform HSE Management System. This system comprises, as an element, some standards that establish binding staff behavior rules for both TNK-BP and all contractors.

Today, on October 7, TNK-BP, the largest taxpayer in the Orenburg Region, celebrates the fifth anniversary of its presence in the region. Robert Dudley, President and CEO of TNK-BP, visited the Orenburg Region. During his visit, he will meet with Alexei Chernyshev, Head of the Orenburg region Administration, heads of the municipalities of oil-producing territories, and employees of the Orenburg enterprises of the Company.

On September 20­–23, British Council and TNK-BP Ukraine held the First International Festival of Modern British Education in the Chamber of Commerce and Industry of Ukraine in Kiev. The Ministry of Education of Ukraine discerned in this initiative of British Council and TNK-BP Ukraine an attempt to strengthen their human potential.

TNK-BP was named the best company of 2004 in the rating of the Forbes magazine. For the second time, TNK-BP came out the first in this prestigious rating.

One million visits registered at the TNK-BP corporate site.

Sergey Karavaev, General Director of TNK-Nyagan, held a press conference dedicated to yet another victory of the enterprise in the and told the press people about the current achievements and next year plans of TNK-Nyagan.

East Siberia Gas Company, operator of the Irkutsk Region gasification project based on the Kovykta gas condensate field, started the selection of a primary contractor for the construction of the Kovykta-Sayansk pipeline, reported Alexei Sobol, General Director of East Siberia Gas Company on Thursday.

The functionaries that repined at what they thought dubious renovation and upgrade of the Lisichansk Refinery in May, when the demand for oil products was high, will have to bite their tongues. Stopping the refinery now would be disastrous. On the edge fall, LINOS with its brand new isomerization unit is probably the only stronghold of stability in the cranky oil processing system of Ukraine.

Last week, Udmurtneft managed to prove again that its environmental protection policy meets the worldwide standards. After the supervisory inspection of the company, an environmental auditing group of the Canadian auditing company PricewaterhouseCoopers prolonged the company’s current ISO 14001 certificate.

On September 2005, on the first anniversary of reversed use of the Odessa–Brody pipeline, the five millionth ton of oil was loaded on the HS  T&Oacute SCA tanker in the Yuzhnyi Port. Payments to Ukraine for oil transportation along this route exceeded $63 million, including the Ukrtransnaft tariffs and the Yuzhnyj Port duties and service fees.

TNK-BP is planning to invest about $4 billion into the full development of the Verkhnechonsk oil and gas condensate field in the Irkutsk Region, which will start in 2008, said Duncan Smart, Manager of the East Siberia–Oil Division, TNK-BP Management, at the presentation of the field development project in the Irkutsk Region Administration on Thursday.

A similar bilateral meeting was held in Nizhnevartovsk in mid-July 2005. According to the heads of municipal structures, this meeting was a great success for the exchange of experience in the interaction between the business and authorities in Russia and the cooperation of the regional authorities and TNK-BP for the implementation of social programs.