BoD of TNK-BP Endorses USD 1 Billion in Investment
OREANDA-NEWS. October 13, 2009. TNK-BP announced important investment decisions made at the meeting of the Board of Directors of TNK-BP Limited, the ultimate holding company of the TNK-BP group of companies. The meeting was chaired by Mikhail Fridman, Executive Chairman of the Board of Directors of TNK-BP, reported the press-centre of TNK-BP.
The Board approved investment of over US400 mln for the initial phase of the Yamal project which has the potential to become a principal production centre for TNK-BP and Russia on the whole. The funds will be spent on early production activities, exploration work and construction of base infrastructure at the Suzun, Tagul and Russkoye oil fields.
The Board endorsed investing in Central Uvat, building on the success of developing the eastern part of the Uvat oil and gas province. In February 2009, TNK-BP commissioned Urnenskoye and Ust-Tegusskoye oil fields in Eastern Uvat oil which will produce 1.9 million tons by the end of the year. In 2010, TNK-BP will start development of the Tyamkinskoye field in Central Uvat. The decision follows a successful exploration and appraisal program resulting in discovery of 10 new oil fields and an over fourfold increase in the Central Uvat reserve base over three years.
The Board also endorsed the fuel quality investment program of US 1.3 bn over the next five years to upgrade TNK-BP’s refineries in Russia and Ukraine in line with new official quality regulations. The fuel quality program consists of 11 projects of varying timelines. The Board supported the first significant project of the progam, construction of an isomerizaiton unit at the Saratov refinery for US 150 mln.
“We are pleased with the progress made by TNK-BP in the first nine months of 2009. The company has proved resilient to macroeconomic challenges and exceeded targets set in the business plan with production growth above 2.5%, “said Mikhail Fridman, Executive Chairman of TNK-BP Ltd., “This gives the Board confidence to endorse a series of long-term investment decisions that underline our commitment to develop long-term sustainable business in Russia and Ukraine.”
Notes to editors:
Uvat is a major greenfield development in the south of the Tyumen region. The Uvat project includes 15 exploration and development licences and 26,6 thousand square kilometers of the total acreage which will form a new oil and gas province. By the end of 2008, aggregate investment in the project had amounted to US 925 mln.
Yamal is an oil- and gas-rich peninsula in the extreme north of Russia. In the Yamal region, TNK-BP owns Suzunskoye, Tagulskoye, Russko-Rechenskoye and Russkoye fields as well as a number of exploration licences, two fields operated by the company’s gas subsidiary Rospan International and a 50% interest in Messoyakhskoye licences jointly developed with Gazprom neft.
TNK-BP is Russia’s third largest oil company, 50% owned by BP and 50% owned by AAR (Alfa, Access Renova). TNK-BP also owns close to 50% of another Russian oil and gas company, Slavneft. TNK-BP accounts for approximately 16% of Russia’s production (including its share of Slavneft). SEC proved reserves (life of field basis) were 8.112 billion boe as of December 31, 2008. The company’s upstream operations are located in West and East Siberia and the Volga-Urals region. TNK-BP owns and operates five refineries in Russia and Ukraine, and retails through a network of 1,400 service stations working under the BP and TNK brands.
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