TNK-BP announces results of the 2010 International Reserves Audit

Under SEC methodology on a life of field (LOF) basis, TNK-BP’s total proved reserves were 8.794 billion barrels of oil equivalent.
The addition of 0.854billion barrels of total proved reserves constitutes a total proved SEC (LOF) reserve replacement ratio of 134%. The average SEC LOF reserve replacement ratio over the past seven years amounted to 140%.
This substantial increase in reserves was underpinned by petrophysical studies at oil fields in the Orenburg region, by active exploration and measures taken to support reservoir pressure at the Urnenskoye and Ust-Tegusskoye oil fields (in the Uvat group in the south of the Tyumen region), and also at the Verkhnechonskoye field in East Siberia. Favourable market conditions also contributed to the high reserves replacement ratio
The latest audit also confirms that as of December 31st 2010, under the PRMS (formerly SPE) criteria, TNK-BP’s total proved reserves were 13.069billion barrels of oil equivalent. This represents a total proved PRMS reserves replacement ratio of 322% in 2010.
This reserves growth was achieved thanks to an increase in the oil recovery factor, resulting from efficiently maintaining reservoir pressure and engineering studies at the Verkhnechonskoye, Urnenskoye and Ust-Tegusskoye oil fields.
The increase was also supported by a rise in gas and condensate reserves at Rospan in connection with the signing of a long-term agreement with Gazprom and by development plans at the Novo-Urengoyskoye and Vostochno-Urengoyskoye oil fields.
Furthermore, testing and intensive drilling in the Orenburg region, as well as increased drilling activity at the Samotlor and Nyagan oil fields, have all contributed positively to the growth in reserves.
Beyond the proved PRMS reserve additions, about 572million barrels of non-proved oil reserves were added through exploration and appraisal activities, marking another successful year of resource renewal.
Francis Sommer, Executive Vice President Technology, TNK-BP, said:
“Achieving a SEC LOF reserves replacement ratio of 134% directly results from excellent teamwork and the application of innovative technology. These technologies have allowed TNK-BP to substantially increase production at Orenburg, to maintain good production levels in Samotlor, and also to realise production and efficiency growth at the company’s new projects.”