TNK-BP Releases Data from the 2009 International Reserve Audit

Under SEC methodology on a life of field (LOF) basis, TNK-BP’s Total Proved Reserves were 8.586 billion barrels of oil equivalent. The addition of 1.091 billion barrels of total Proved Reserves constitutes a Total Proved SEC (LOF) reserve replacement ratio of 177%. The average SEC LOF reserve replacement ratio over the past six years amounted to 139%. The strong result was underpinned by sustained brownfield performance and expanded greenfield development in the Uvat group of fields in the south of the Tyumen region, the Verkhnechonskoe oil field in East Siberia and the Kamennoe oil field in West Siberia. The high reserve replacement ratio was also supported by a more favourable price indicator as compared to 2008. In 2009, the average price for Dated Brent crude oil was $59.91 per barrel as compared to $36.55 per barrel at the end of 2008.
The latest audit also confirms that as of December 31st 2009, under the PRMS (formerly SPE) criteria, TNK-BP’s Total Proved Reserves were 11.7 billion barrels of oil equivalent. This represents a Total Proved PRMS reserves replacement ratio of 329% in 2009. The increase was supported by significant expansion of the Kamennoe and Samotlor Ryabchick developments as well as several Orenburg fields including Boborovskoe and Sorochinsko-Nikolskoe.
Beyond the proved PRMS reserve additions, about 250 million barrels of non-proved oil reserves were added through exploration and appraisal activities, marking another successful year of resource renewal.
Bill Schrader, Chief Executive Officer of TNK-BP, said: “2009 was another year of remarkable performance for TNK-BP despite an uncertain external environment. The company’s production continued to grow for nine consecutive quarters while the average SEC LOF reserve replacement ratio over the past six years amounted to 139% — a world—class achievement. By continuously renewing its reserve base, TNK-BP remains an important contributor to the country’s oil and gas inventory and underlines its long-term commitment to Russia.”
In 2009, total TNK-BP production of oil and gas increased by 2.9% which is significantly above a 0.2 % rise of total Russian oil and gas production.
Francis Sommer, Executive Vice President Technology, TNK-BP, said:
“The 2009 SEC LOF reserves replacement of 177% results from an outstanding teamwork and technology application. Drilling of near field satellites and water flooding enabled us to achieve a 6% brownfield production growth in Orenburg. We maintained production levels at Samotlor thanks to consistent sidetracking, water flood optimization and well work. The company also continued to expand development and ramp up production in all of its greenfield projects using drilling and seismic technologies to efficiently access oil in these new fields.  These good results reflect the underlying strength of our people, base assets and the impact of applying efficient technologies.”