Company news in 2008

The oil company Verkhnechonskneftegaz, developing the Verkhnechonskoe oil and gas condensate field, one of the largest fields in Eastern Siberia, is going to produce 1 million tons of oil in 2009 and raise its annual production of hydrocarbons up to 7­–8 millions tons by 2014, Igor Rustamov, General Director of Verkhnechonskneftegaz, said to journalists on Tuesday.

TNK-BP has announced today that its BP retail network is further reducing the price for its gasoline grades, including ВР Ultimate – fuel of the new generation in the premium price segment.

The agreement on swap supplies of oil signed by TNK-BP, Rosneft and Transneft in mid 2008 will allows these companies to save up to $50 million a year, Jonathan Kollek Vice President, Sales, Trading and Logistics (STL), TNK-BP, said to journalists.

Beginning from 2009, TNK-BP will start signing long-term jet fuel supply contracts with air companies based on a price formula, Jonathan Kollek Vice President, Sales, Trading and Logistics (STL), TNK-BP, said to the press.

The oil export duty of $192.1 per ton enforced on December 1 makes development of major projects by companies impossible, Viktor Vekselberg, Executive Director, Gas Business Development, TNK-BP, said to journalists.

TNK-BP will complete its transactions for buying networks of retail sites in the Russian Federation and Ukraine by the end of this year, Alexander Kaplan, Acting Executive Vice President, Downstream, TNK-BP, said to journalists.

The export of oil and oil products by TNK-BP in 2008 will drop by 4% down to 58.2 million tons, Alexander Kaplan, Acting Executive Vice President, Downstream, TNK-BP, said to journalists. The export of oil and oil products will decrease due to redistribution of flows in the Commonwealth of Independent States and the internal market of Russia.

Oil companies of the Russian Federation are going to ask the Government to postpone enforcement of a new technical regulations for fuels by 1–2 years more, Alexander Kaplan, Acting Executive Vice President, Downstream, TNK-BP, said to the press.

TNK-BP invested approximately $6 million rubles into construction of a system of floating booms, first in Russia, which can close the riverbed within minutes and protect the river from spills of oil products, a representative of the Public Relations Department of TNK-BP Povolzhye said to the Russian Information Agency (RIA) Novosti.

TNK-BP is interested in swap operations in the market of oil products, Alexander Kaplan, Acting Executive Vice President, Downstream, TNK-BP, said to journalists on Thursday. “We always were for swap operations, but the market environment is not ready for them yet,” said he.

Ryazan Oil Refinery Company, a closed joint-stock company incorporated in TNK-BP, started output of diesel fuel of class Euro-5 with a sulfur content of no more than 10 ppm. According to TNK-BP, this fuel meets the latest worldwide ecological standards.

The drilling and oilfield-service enterprises of TNK-BP received certificates of compliance with the international standards ISO 9001 and ISO 14001 from the United Kingdom Accreditation Service (UKAS) and a certificate of compliance with the international standard OHSAS 18001 from the Norwegian accreditation and certification center Norsk, the press center of the company informed the new agency Prime-TASS.

TNK-BP intends to continue implementation of the project for development of the Uvat fields in the Tyumen Region despite the world financial crisis that has already had its adverse impact on the company, Oleg Chemezov, Vice President of TNK-BP and Director of TNK-BP Siberia, TNK-BP’s branch in Tyumen, said to the Russian Information Agency (RIA).

OJSC “Tyumenneftegaz,” a subsidiary of TNK-BP, purchased three hydrocarbon fields in the Orenburg Region in an auction, the Department for Management of Subsoil Use of the Orenburg Region (Orenburgnedra) said to Interfax.

The program of cooperation between TNK-BP and Russian universities, colleges and other educational organizations received high appreciation at the contest “Corporate Donor of Russia – 2008” in the nomination “Support of Education and Development of Young People’s Potential.”

TNK-BP is rightfully proud of the center for professional training and retraining of specialists in geology and oil and gas engineering opened in the capital of the region, Richard Herbert, Executive Vice President, Technology, TNK-BP, said at the center opening ceremony.

TNK-ВР has announced that in October, 2008, the company has been reducing the selling price for jet fuel for all kinds of deals on a daily basis thanks to an application of a pricing formula. The reduction has amounted to 4.5% as compared to the beginning of the month.

TNK-BP is abiding by its plan to start oil production in the fields of the Uvat project in the Tyumen Region in Q1 2009, Sergey Brezitsky, Executive Vice President, Upstream, TNK-BP, said to the press.

The production of TNK-BP will remain at the level of 2008, Timothy Summers, Chief Operating Officer of TNK-BP, said to the Petroleum Information Agency.

Due to the fall of oil prices and consequences of the financial crisis, TNK-BP may delay implementation of its projects in Krasnoyarsk Krai and Yamal, said Timothy Summers, Chief Operating Officer of TNK-BP, to the Petroleum Information Agency.

The investments of TNK-BP in 2009 may grow up to $3.5–4.5 billion, Timothy Summers, Chief Operating Officer of TNK-BP, said to the Petroleum Information Agency (ANI).

TNK-BP is going to substantially enhance the gas component of its business, said Timothy Summers, Chief Operating Officer of TNK-BP, to the Petroleum Information Agency (ANI).

Construction of the East Siberia Pacific Ocean (ESPO) oil pipeline, a major artery to bring Russian crude oil to the ATP regional market, is truly a task of national importance. Building a raw material base to fill the ESPO is becoming a task of no lesser importance. 

TNK-BP, the third largest oil company in Russia, is trying to expand its activities to new regions. Recently, the company purchased three licenses for development of fields in the Astrakhan Region. Total investments into exploration and commercial development of these fields will exceed $1.8 billion.

One of the main TNK-BP goals is safety of its employees and absence of injuries and casualties at work. To attain this goal, the company has developed and approved Golden Rules of Safety.

In mid-September, TNK-BP started production of jet fuel TS-1 with sulfur content not exceeding 30 ppm at the CJSC “Ryazan Oil Refinery Company,” the press service of TNK-BP said to the Petroleum Information Agency (ANI).

The numbers tell the story. In 2008 TNK-BP had a record first half in terms of income, return on capital, shareholder value and taxes.

TNK-BP welcomes the emerging resolution of the dispute between its shareholders.

Final agreement between shareholders will enable the management and staff of TNK-BP to focus on the way forward for the company free of this significant distraction and the uncertainties around the company’s business plan and capital expenditure.

Dear Sirs,

We are pleased to inform you that Chief Operating Officer — T. Summers’ presentation “TNK-BP first half 2008 performance results” has been published on the TNK-BP web-site and can be accessed in the “Press center” / “Speeches and presentations” section. The presentation covers TNK-BP first half 2008 financial results, operational highlights, major projects update, etc.

http://www.tnk-bp.com/press/presentations/

TNK-BP will come to China will little oil and subsequently increase its oil export to China, Jonathan Kollek, Vice President, Sales, Trading and Logistics (STL), TNK-BP, said yesterday at a briefing. In three weeks from now, an oil export terminal will be launched in Barabinsk, which will export oil in three possible directions, one of which is China. Apart from that, the company has received a special tariff for rail transportation of oil, which makes export of oil to China profitable.

The joint-stock company “Orenburgneft” incorporated in TNK-BP put into operation a new gas compressor station costing 44 million rubles in the Dolgovskoe field operated by the oil and gas production department of Buzulukneft, informed the press service of TNK-BP.

TNK-BP is planning production of approximately 1.2 million tons of oil in the fields of the Uvat project in South Tyumen Region in 2008, Oleg Chemezov, Vice President of TNK-BP Management and Director of TNK-BP Sibir, subsidiary of TNK-BP in Tyumen, said at a meeting with journalists of foreign and Russian mass media.

TNK-BP support the initiative of the Government on postponing enforcement of new motor fuel standards by 2 years, said Volker Woyke, Vice President, Refining, TNK-BP to the press.

TNK-BP International Ltd (TIL) has reported its consolidated financial results for 2007 for the TIL group of companies. The financial statements have been prepared under accounting principles generally accepted in the United States of America (generally referred to as US GAAP) and represent the consolidated financial position of TIL and its subsidiaries.

Annual general shareholders meeting of TNK-BP Holding (TBH) was held on June 26, 2008. The meeting reported the company consolidated financial results prepared under accounting principles generally accepted in the United States of America (generally referred to as US GAAP).

The Joint-Stock Company “Vareganneftegas” (subsidiary of TNK-BP in the Khanty-Mansi Autonomous Area) is going to drill 2 well clusters and 17 wells (11 production wells and 6 injection wells) in the Bakhilovskoe field, the press service of TNK-BP said to the Petroleum Information Agency (ANI).

The Joint-Stock Company “Orenburgneft” incorporated in TNK-BP is integrating a new drilling technology in its fields based on the use of flexible pipes, the press service of TNK-BP said to Interfax.

TNK-BP is going to allocate 3.7 billion rubles in 2007–2010 for strategic development of the Saratov Oil Refinery, the press service of TNK-BP said to the Petroleum Information Agency (ANI).

TNK-BP plans to divest its service assets in an IPO, announced TNK-BP Chief Operating Officer Tim Summers in an appearance at the twelfth annual investors’ conference, “Russia: The Power of Transformations.”