Company news in 2010

TNK-BP finds it expedient to make associated petroleum gas (APG) utilization requirements more flexible for greenfields. German Khan, TNK-BP Executive Director, said to the media that greenfield subsurface specificities and development conditions frequently make greenfield APG utilization uneconomic.

Deputy Prime Minister Sechin took part in the ceremony of inauguration of the first joint on Purpe – Samotlor pipeline near Nizhnevartovsk yesterday. He cut a red ribbon symbolizing the start of construction together with Nikolai Tokarev, Transneft President. Immediately after the first joint had been welded, the guests handed named watches to welders and left commemorative signatures on the ‘pipe’.

Russia’s No.3 oil firm TNK-BP expects 2010 hydrocarbon output to rise by 1—2 percent excluding the Slavneft business, chief operating officer Bill Schrader told Reuters in an interview late Friday.

Russian oilmen understand the necessity of training new specialists and developing the scientific capability. Vladimir Putin got assured of that late last week when he visited Tyumen Petroleum Research Center (TPRC) owned by TNK-BP. In his turn, he advised oilmen to provide more workload for the Russian industry.

TNK-BP spends about 200 million rubles per year to implement educational projects, German Khan, TNK-BP Executive Director, said to RIA Novosti. TNK-BP provides training for reservoir management research and engineering personnel in the company-owned Tyumen Petroleum Research Center. The Center was visited by Prime Minister Putin on Friday as part of his trip to Tyumen.

TNK-BP is trying to bring to 95% its level of associated petroleum gas (APG) utilization. Although the company still has almost two years to do so, the standard that is established by the government program is already complied with in some fields. Bill Schrader, TNK-BP COO, said yesterday that APG utilization projects would get $450M of investment this year and the total volume of investment would approximate $1.8B. The company intends to continue implementing its program but advocates a dialog with the Government with regard to its new projects.

TNK-BP will host global investor conference call and webcast to present its 4Q and 2009 operational and financial results. The call is scheduled for Monday 1^st March, at 17:00 MSC / 14:00 LDN / 09:00 NY.

TNK-BP is ready to consider acquiring refining assets within the Customs Union zone comprising Russia, Kazakhstan and Belorussia, as it regards oil refining rather than export as its focus activity, said TNK-BP’s Vice President Downstream Didier Baudrand in an interview with Reuter.

TNK-BP lowered its specific energy consumption for oil production by 3% in 2009, informed the press service of the company. According to the press service report, the company was planning to have this indicator decreased by 1.5 to 2% in the beginning of 2009. These results were attained owing, first and foremost, to special technical measures taken at the artificial oil lifting and reservoir pressure maintenance facilities, which raised significantly the equipment efficiency. In addition, a tangible contribution was provided through organizational measures aimed at centralized management of energy-saving programs.

The Russo-British joint venture TNK-BP, whose anticipated share placement on the external markets in the coming years should be the largest after Rosneft three years ago, wants to expand its investor base in Asia, said the company’s Chief Financial Officer Jonathan Muir in an interview with Reuter.

This year TNK-BP will bring into operation the Tyamkinskoye deposit which makes part of the Uvat group of deposits in the south of the Tyumen Region, German Khan, TNK-BP’s Executive Director told reporters.