TNK-BP to Boost Oil Production at Verkhnechonskoe Field by 40% to 7 Million Tonnes by End of 2012

At a meeting with the Governor of Irkutsk Region, Sergey Yeroschenko, TNK-BP Executive Director German Khan announced that the Company is now actively expanding its production capacities and is predicting a further increase in output.

During the meeting, which was also attended by Oleg Chemezov, Vice President and Director of TNK-BP’s Siberia Branch, and Sergey Fedorov, General Director, VCNG, there was a discussion of the results of collaboration between TNK-BP and the Government of Irkutsk Region under their socio-economic cooperation agreement. This year, the Company will pay roughly 7 billion rubbles into the regional budget.

Irkutsk Governor Sergey Yeroschenko stressed: “TNK-BP is one of the few companies that meets all its commitments”. For his part, German Khan noted that “there is mutual understanding” between TNK-BP and the regional leadership on the issues under discussion. “By the end of the year we will sign a new document covering the next period of time”, he said.

TNK-BP owns 74% of OJSC Verkhnechonskneftegaz (Rosneft owns 25.94%). The field is located in the north of Irkutsk Region, 1,100 km from Irkutsk city, and is operated by around 4,000 employees of VCNG and contractor organizations. Oil is supplied via the East Siberia – Pacific Ocean pipeline system. In 2011, the field produced 5 million tonnes of oil.