TNK-BP Announced Acquisition of Two Companies in the Orenburg Region

The acquisition of these blocks is consistent with TNK-BP’s strategy of optimizing and maximizing the value of its asset portfolio. The blocks are in the immediate vicinity of Donetsko-Syrtovskoye and Vakhitovskoye fields currently developed by TNK-BP, which will enable the company to achieve substantial synergies by reducing expenditure on the construction and use of transport and processing infrastructure. Substantial added value can be obtained through efficient use of associated gas, as the licence blocks are viewed as elements of an integrated strategic project “Gas of Orenburgneft”.
“TNK-BP intends to start investing in the development of the acquired blocks in the near future. Development of the newly purchased assets will allow creating a new production growth centre in the east of the Orenburg region. Its core field will be Vakhitovskoye and Donetsko-Syrtovskoye fields with an annual production of 4 to 4.5 million tons of oil in 2013 and 2014”, said Sergey Brezitsky, Executive Vice President, Upstream, TNK-BP.
LLC “Universitet-nedra” and LLC “Klyuchi” hold licences with total resources (including C1 and C2 reserves and C3 book resources) exceeding 11.7 million tons of oil.
Orenburgneft is one of the key subsidiaries of the TNK-BP Group. In 2009 the production of Orenburgneft increased by 6.3% and amounted to 18.4 million tons of oil. The replenishment rate of the hydrocarbon reserves of Orenburgneft exceeded 150% in 2009. In 2010 the company plans increase its production to 19.8 million tons of oil.
TNK-BP is Russia’s third largest oil company, 50% owned by BP and 50% owned by the AAR Consortium (Alfa Group, Access Industries and 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 8.586 billion boe as of December 31, 2009.