TNK-BP production reaches 1 million tons

TNK-BP production reaches 1 million tons of crude oil at the company's new fields in Uvat

TNK-BP announced today that the company has produced 1 million tons of crude oil at the Urnenskoye and Ust-Tegusskoye fields of the Uvat project in the south of the Tyumen region since the launch of commercial production on 16 February 2009. Daily production at the fields currently amounts to 6,200 tons per day.

TNK-BP continues expanding its production capacity and drilling of wells. Since the start of 2009, the company has drilled 27 producing wells out of 41 planned for the year.

TNK-BP expects to complete construction of reservoir pressure maintenance system facilities, a multiphase pump station, and the second stage of the central oil gathering facility by the end of this year. These activities will allow to increase daily oil production to 8,000 tons in 4Q 2009.

In 2009, the company plans to start construction of a gas turbine power plant at the Ust-Tegusskoye field. The investment in this project is estimated at 1.4 billion rubles, and the power plant should be commissioned in October 2010.

This will result in 95% utilization of the gas produced in the Eastern hub of the fields. Construction of the intra-field infrastructure of Urnenskoye and Ust-Tegusskoye (pipelines, motor roads, power transmission lines, transformer substations) will be continued in parallel.The total amount of TNK-BP investment in the Uvat project since the start of development will amount to ca. $1.5 billion at the end of 2009.“Commercial operation of the Urnenskoye and Ust-Tegusskoye fields has demonstrated that Uvat has greater potential than it was considered just a few years ago,” Sergey Brezitsky, TNK-BP Executive Vice President, Upstream, said. “Our success is based on application of modern exploration and production technology, primarily, three-dimensional seismic. We shall continue working actively in the Eastern hub of the project to drill wells and construct the infrastructure. In addition, we plan to start developing fields in the Central hub of Uvat where exploration is still underway”.“The development of Uvat fields, along with Kamennoye and Verkhnechonskoye is among TNK-BP priority projects that will be funded as planned,” Tim Summers, Chief Operating Officer, said. “In 2009, we expect to produce more than 2.5 million tons of oil in Uvat. TNK-BP will not just manage to sustain production at the record high level of the last year but also increase it by around 2%”.

Notes to Editors

TNK-BP owns 15 license areas in the south of the Tyumen Region, which are consolidated into the Uvat Project, with a total area of 26,600 sq. km.The Urnenskoye and Ust-Tegusskoye fields were launched in commercial operation on 16 February 2009 in the presence of Igor Sechin, Deputy Chairman of the Russian Government. The oil is transported from the central oil gathering facility of the Ust-Tegusskoye field by a 264 km pipeline to the Kalchinskoye field and further by a 70 km pipeline to the system of OJSC Transneft.The cumulative oil in place of the two fields is estimated at 300 million tons, including 100 million tons of recoverable reserves.Since August this year, the fraction of contractors engaged in the Uvat Project, which are registered in the Tyumen Oblast, has exceeded 60%. On average, 1,500 persons from the contractor organizations work on LLC “TNK-Uvat” facilities each month.TNK-BP is Russia’s third largest oil company, 50% owned by BP and 50% owned by AAR (Alfa, Access 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 8.112 billion boe as of December 31, 2008. The company’s upstream operations are located in West and East Siberia and the Volga-Urals region. TNK-BP owns and operates five refineries in Russia and Ukraine, and retails through a network of 1,400 service stations working under the BP and TNK brands.- TNK-BP.com

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