TNK-BP Acquisition Boosts Rosneft's 1Q Production

Russia's OAO Rosneft reported Tuesday that its first quarter production increased by 82.4 percent compared with 1Q 2012 to 4.8 million barrels of oil equivalent per day (boepd).

The firm said that the increase in its crude oil production – to 4.2 million boepd – was largely due to its acquisition of TNK-BP adding some 18.4 million barrels. Removing the contribution from TNK-BP, Rosneft said that its daily oil production increased by 0.6 percent thanks to organic growth at its Vankor oil field that was mainly driven by new wells.

Gas production increased to 635,000 boepd, compared with 226,000 boepd for 1Q 2012. The jump in production was again largely due to the impact of TNK-BP's contribution.

Rosneft President Igor Sechin commented in a statement:

"The key event for Rosneft in the reporting period was the acquisition of 100-percent equity interest in TNK-BP. The company has strengthened its leading positions in development of the Russian shelf and signed a number of significant long-term agreements on monetization of hydrocarbon production.

"Dynamic business development had a positive impact on our operational performance – sustainable production growth and building up our reserve base. We have maintained our solid financial position and will continue to work efficiently to increase the shareholder value and investment appeal of our company."

Rosneft's revenues for 1Q 2013 were greater by 2.5 percent at $24.4 billion, while EBITDA profit improved 7.6 percent to $4.7 billion.