OREANDA-NEWS. Major oil company TNK-BP intends to pour USD 400mn in production lines of its subsidiary Verkhnechonskneftegaz over the next year.

According to company’s officials, the final decision regarding the timing and amount of the investment will be based on how fast the Eastern Siberia - Pacific Ocean pipeline (ESPO) is filled, taking into account that the company has to start construction of its section of pipeline in Q2/08.

As recalled, construction of ESPO oil pipeline, which will run to the Pacific coast was postponed until 2015, deputy industry and energy minister Andrei Dementyev announced on Jul 19. Verkhnechonskneftegaz intends to raise oil production by 326,000 tons next year. TNK-BP controls 68,4% stake in Verkhnechonskneftegaz while Rosneft has 25,94%.

TNK-BP also plans to invest USD 800mn over the next 5 years to develop Kamennoye field in Khanty Mansiisk region. The production is planned to increase to 3,5mn tons per year by 2011, from the current 1mn tons.

To remind you, TNK-BP net profit under RAS accounting standards amounted to RUR 21,6bn (USD 864bn) in H1/07 vs. RUR 38,707bn in H1/06. TNK-BP’s performance was negatively affected by nominal depreciation of RUR against USD, which led to an increase in RUR denominated expenditures.

The company’s net profit under US GAAP accounting standards amounted to USD 2,146bn in H1/07. In full-2006, the company’s net profit reached USD 6,4bn.