TNK-BP Board of Directors praises robust results in 2010, endorses 2011 business plan

Декабря 24, 2010

The Board of Directors supported the key parameters of management’s 3-year strategic development framework and approved TNK-BP’s business plan for 2011, which, in particular, provides for an increase in annual hydrocarbon production by 1.3% to 715 mln barrels of oil equivalent, including TNK-BP’s share in Slavneft (1.7% to 647 mln barrels of oil equivalent, excluding TNK-BP’s share in Slavneft) a rise in the organic investment programme by 15% to USD 4.6 bln and a 100% replacement of production with new reserves.

The Board of Directors reiterated TNK-BP’s commitment to exploration and development of new hydrocarbon reserves in Russia and considered the management report on implementation of major projects including the Uvat group of fields, the Verkhnechonskoye oil field, as well as preparation for the full field development of gas condensate fields held by JSC Rospan International and greenfield oil deposits in Yamal.
In the course of its meeting the Board also discussed opportunities to increase efficiency of TNK-BP activities in West Siberia, and also in Ukraine, where the company owns Lisichansk refinery and a chain of fuel retail stations.
The Board of Directors supported management’s recommendations with regards to TNK-BP’s international expansion, first and foremost, the completion of the deal to acquire BP’s oil and gas assets in Vietnam and Venezuela announced in October 2010, and the continued search for other value-accretive opportunities.
With regards to personnel changes, the Board of Directors accepted the resignation of TNK-BP Executive Director Viktor Vekselberg effective from January 15, 2010.
“Viktor Vekselberg is president of the Skolkovo Development Foundation and intends to focus on the implementation of this project, which is of great importance to the country”, said Executive Chairman of the Board of Directors Mikhail Fridman. “We are very much grateful to Viktor Vekselberg for the outstanding contributions he has made to the development of TNK-BP and for the important role he has personally played in the formation of the company. I’m confident that Viktor will continue to play an integral role in identifying the strategic priorities in the new stages of TNK-BP’s development”.
Viktor Vekselberg will remain a member of the Board of Directors and will continue to head the Remuneration Committee.
Additionally, changes were made to the composition of the Board of Directors. Iain MacDonald, having recently left BP, will be replaced on the Board by BP’s Deputy Chief Financial Officer Brian Gilvary. Previously, Brian Gilvary was head of BP’s trading business, and this experience will be a valuable asset for TNK-BP.
The shareholders of TNK-BP once again confirmed that Maxim Barsky will assume the role of head of the company in 2011. The Board of Directors agreed that, due to technical procedures still in progress, there will be a delay in Mr Barsky assuming his new role as chief executive officer of TNK-BP Group (President of TNK-BP Management) until the completion of the aforementioned procedures, primarily related to finalization of stock options and long-term incentive plans. The company will make a separate announcement once these procedures have been completed.
In the interim, Executive Chairman of the Board of Directors Mikhail Fridman will continue as head of TNK-BP.