Company news in 2006

In modern times, business can hardly be successful without cooperation with different communities in its environment, first of all, with regional authorities. The oil company TNK-BP offers its advanced experience in this sphere.

On Tuesday in Moscow the Irkutsk Oblast Administration and TNK-BP signed an agreement on social-economic cooperation — it was reported by the company to Siberskiye Novosti. The document was signed by Alexander Tishanin, Governor of the Region, and Victor Vekselberg, Executive Director Gas Development at TNK-BP. The agreement also contains a point on the gasification of Irkutsk Oblast.

RUSIA Petroleum has begun delivery of gas from the Kovyktinsky gas-condensate field (Irkutsk Oblast) to the settlement of Zhigalovo — it was reported to the Gas Information Agency (AGI) at TNK-BP, which owns around 63% of shares in RUSIA Petroleum.

The Lisichansk Oil Refinery became the first refinery in the branch to be certified in three international standards.

The Russian-British company TNK-BP has informed the Petroleum News Agency (ANI) that next year it is planning to sell around 300 Mcm of gas on the Electronic Trading Floor of JSC Mezhregiongaz.

TNK-BP Ukraine announced that December 15^th ZAO Linik held a meeting of the employees which discussed the results of the compliance check of the labour legislation at the refinery. The compliance check was carried out by the territorial state labour inspection of the Lugansk region at the request of the refinery management.

Today, the Nizhnevartovsk Region Administration and TNK-BP signed an agreement of economic cooperation in 2007. The agreement implies financing of 11.5 million rubles.

TNK-BP expects a significant growth of production in 2009, said Robert Dudley, President of TNK-BP, to the press.

TNK-BP is going to take part in sales of gas from an internet trading website, Prime-Tass was informed by the company.

Interview with Mikhail Osipov, Executive Vice President, Oilfield Services, TNK-BP.

Novosibirskneftegaz, affiliated to the TNK-BP Group, has won tenders for the right to exploit the subsoil of the Chekovsky and Bochkarevsky oil-bearing fields in the Kyshtovsk region of Novosibirsk Oblast.

TNK-BP was named “Company of the Year 2006” in the annual competition organized by the business weekly magazine Kompaniya. TNK-BP was chosen as the best company for Industrial Performance and Social Investments.

Over the next three years the company TNK-BP is planning to build 60 new petrol service stations (40 under the TNK trademark and 20 under the BP brand), and in doing so will invest up to $150m in development and provide more than a thousand jobs for residents of the city.

In 2006 the Russian-British joint venture TNK-BP expects to realize 82.5m tonnes of oil compared to the 78.1m tonnes of oil it realized in the previous year (5.6% growth), it was reported by Jonathan Kollek, Vice-President, STL, Downstream, at a press conference in Moscow on Tuesday.

The Russian-British joint venture TNK-BP has concluded a contract to supply oil from Russia along the Kazakh-Chinese Atasu-Alashankou pipeline as of January 2007 and hopes to implement it.

Capital investments into the Russian fuel and energy complex should amount to at least $20 billion a year, said Anthony Considine, Executive Vice President, Downstream, TNK-BP, in his speech at the international oil forum “Oil of Russia: Present and Future” in Moscow on Friday.

The Russian-British oil company TNK-BP is going to produce 30.8 million tons of oil in the Samotlor field in 2006 and maintain this production level until 2011.

In 2006, the unleaded gasoline brands Premium Euro-92 and Premium Euro-95 produced by the Ryazan Refinery were awarded diplomas of the contest “100 Best Products of Russia.” Moreover, the diesel fuel brand EURO of the EN 590 standard produced by the Ryazan Refinery won a prize of this prestigious contest. These diplomas and prizes demonstrate that the independent judges of this contest highly appreciate the quality of products turned out by the Ryazan Refinery.

Novosibirskneftegaz has won a prize for quality at the contest held by the Administration of the Novosibirsk Region. The results of this contest were summed up on November 10, the World Quality Day.

TNK-BP announced that its Russian holding company, TNK-BP Holding (TBH) held an Extraordinary General Meeting of shareholders (EGM) today at which an interim dividend of RUR 97 billion (RUR 5.95 per share) was approved. The dividend will be paid from TBH earnings for the first nine months of 2006, which include the impact of the sale of Udmurtneft to Sinopec completed in August 2006.

Tyumenneftegaz (TNG, incorporated in TNK-BP) is going to increase the volume of its capital investments into development and arrangement of fields in the south of the Tyumen Region by 33% compared to 2006. Without the cost of seismic exploration works, the volume of capital investments will exceed 2.5 billion rubles.

On November 7, the new TNK brand website was launched. It is meant to support the visual and qualitative change recently undergone by TNK brand.

The Board of Directors of TNK-BP approved the $3.4 billion investment program of the company for the next year, said Rober Dudley, Chief Executive Officer of TNK-BP, at a press conference in Moscow on Tuesday.

The Russian-British oil company TNK-BP, blamed by the Ministry of Natural Resources of the Russian Federation in having the largest stock of idle wells, is going to present a plan for reducing this stock by at least 20% to the Ministry of Natural Resources, said Robert Dudley, Head of TNK-BP, at a press conference in Moscow.

In 2007, TNK-Uvat, incorporated in TNK-BP and based in the Tyumen Region, is going to start full-scale development of the Ust-Tegussk and Urnensk fields of hydrocarbons on the territory of the Uvat District of the Tyumen Region, the company press service said to Interfax.

The Board of Directors of Verkhnechonskneftegas unanimously approved the nomination of Mugammir Galiullin as the General Director of the company, a press release of the company says.

TNK-BP Holding is going to increase the share of gas in its revenues up to 27%. Kris Sliger, Executive Vice President of TNK-BP for Strategy and New Business Development, said on Friday that the share of gas in the company’s earnings before interest, taxes, depreciation and amortization (EBITDA) will grow from the current 5% to 27% by 2015. Analysts point out that TNK-BP Holding does not fall behind Rosneft and LUKOIL, which some time ago gave high priorities to gas production in their long-term strategies.

In the course of exploration activities in licensed areas located in the south of Tyumen Oblast, geologists of LLC TNK-Uvat (TNK-BP, BU Tyumen) discovered a new field, and it was decided to name it after Honored Geologist of the Russian Federation A.R.Malyk.

The Rtischevsk District is often called one of the thoroughfares of Russia: rail and automobile transport corridors traverse its lands from north to south and from west to east. These travel corridors are very important for agricultural producers, especially those of the Rtischevsk District who proved that they are leaders of the province in sugar beet production and gathered high crops of grains this year. The profits yielded by these crops were higher than expected owing to the privileged prices of fuel supplied to the district by Saratovnefteprodukt, a subsidiary of TNK-BP.

Ryazan Refinery and TNK-BP abide by the principles of socially responsible business.

Novosibirskneftegaz, incorporated in TNK-BP, won the tender for the right to develop the Baklyansk field in the north of the Omsk Region, the press service of the regional administration informed Interfax-Siberia.

TNK-BP bought the Ingair subsoil plot in the Tyumen Region for 49.2 million rubles during the open tender held on Tuesday in Tyumen for the right of subsoil use for prospecting, exploration and production of hydrocarbons in the south of the Tyumen Region.

Young specialists initiated into TNK-BP employees in Buzuluk on October 13.

The Legal Service of TNK-BP was named the best legal department of Russia in the Oil and Gas nomination.

On September 15, a seminar “TNK-BP and State Authorities: Efficient Partnership of Business and Authorities” was held in the Saratov Region. Representatives of TNK-BP Management from Moscow, TNK-BP West Siberia, TNK-BP Orenburg, and state authorities from the regions of Company presence came to Saratov to take part in this seminar.

Alpha Bank started its analysis of TNK-BP Holding, a bank review informed. The initial forecast price of shares of TNK-BP Holding estimated by analysts of Alpha Bank is $3.1 per share. Alpha Bank recommends buying them.

Implementation of the Uvat project implies development of a new oil-bearing province on the territory of the Tyumen Region. The Uvat project is being actively developed and expanded. TNK-BP is paying special attention to this project.

The Management Board of TNK-BP appointed new general directors of Tyumenneftegaz and TNK-Uvat,100% subsidiaries of TNK-BP registered in the Tyumen Region, said German Khan, Executive Director of TNK-BP Management at а press conference in Tyumen on Friday.

The Tyumen Region Administration and TNK-BP Management are going to sign an agreement of cooperation in 2007–2009 by January 1, 2007, said Vladimir Yakushev, Governor of the Tyumen Region, at the press conference dedicated to the meeting with the management of the oil company held on Friday in Tyumen.

TNK-BP Management is planning to expand its activities in the YaNAO in the framework of its five-year program, said German Khan, Executive Director of TNK-BP, to the press in Tyumen on Friday after a meeting dedicated to implementation of investment projects on the territory of the Tyumen Region.