TNK-BP Launches Major Workover Rig Tender

TNK-BP announced the opening of tenders for the long term provision of well work services and up to three hundred workover rigs for its upstream oil and gas operations across Russia.

This is the first time such long term workover contracts have been tendered in the Russian oil and gas industry.

A list of 18 pre-qualified bidding companies has been agreed, all but one of them Russian firms.

Contract terms will be for three years with options to extend by up to two further years. The total value of all contracts let under this tender program could reach $1.3 billion.

Contractors will be requested to tender rigs and services which will increase efficiency of workover operations; improve early installation electric submersible pump failure rates and support recovery of idle well stock. Contractors will also be required to fully meet TNK-BP's Health Safety and Environmental standards and technical requirements.

Successful contractors will be notified in early November with a view to rigs and crews being in place from January 2008.v This tender follows the company's recently announced launch of long term tenders for up to 60 dedicated drilling rigs and further builds on previous long term partnership arrangements with Russian and international contractors.

By the end of 2007, more than one third of all of TNK-BP's goods and services provided by third parties will be under long term contracts.

TNK-BP's Chief Operating Officer, Tim Summers said; "This tender continues our drive to improve the quality, safety and efficiency of services available to the Russian industry. It represents further progress in building TNK-BP's long term relations with key suppliers who will help us deliver our demanding long term production and HSE goals. And it will take us one step closer to matching international best practice here in Russia."

The workover rigs hired pursuant to this tender process will complement those provided by TNK-BP's oil field services division which will continue to supply a significant proportion of TNK-BP's ongoing work over needs.