Positive results from TNK-BP Board meeting

TNK-BP today announced a number of significant operational decisions taken at the meeting of its Board of directors, held September 25th.

At its first meeting since the signing of a Memorandum of Understanding between shareholders BP and AAR, the TNK-BP Board resolved some outstanding matters for calendar year 2008 and agreed key steps to underpin future growth in production, reserves, profitability and value.

The Board approved the business plan for 2008 which included organic capital investment of $4.4 billion in line with the prior proposals from management.

Shareholders also formally agreed future stages in a number of important greenfield projects. These include the Uvat, Verkhnechonskoye and Kamennoye projects – all now supported to move to the next stage in their development. These projects are a significant investment in future production and reserves growth for TNK-BP and Russia; in excess of $2.5 billion.

Specifically, the Board approved:

• Investment in infrastructure, engineering and project activity as part of the development of the Verkhnechonskoye field, due on stream in October
• Investment to complete Stage 1 of the Eastern Hub commercial development of the Uvat project and related regional infrastructure
• Investments in the Northern hub of the Kamennoye field, and
• Investment in gas projects in Orenburg.

The shareholders also reviewed TNK-BP’s in year performance and discussed future spending, financing and dividends. They agreed to pay a dividend of 40% of net income for first-half 2008.

The decisions taken by the Board help TNK-BP deliver another strong year and position the company for continued success.

Source: TNK-BP

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