TNK-BP to Bump Up Uvat Production Investments to $2.5B by 2010

TNK-BP is going to increase the volume of its investments into development of oil fields and creation of a new large Uvat oil and gas production region in the southern part of the Tyumen Region up to $2.5 billion by 2010, according to the long-term agreement between the Administration of the Tyumen Region and TNK-BP prolonged in late January 2009, Tyumenneftegaz, a subsidiary of TNK-BP, told Prime-TASS.

According to German Khan, Executive Director of TNK-BP, the Uvat project plays an important role in the results expected by the company in 2009. Investments into this project will be raised up to $2.5 billion by 2010, and oil production in the region will be increased up to 2 million tons a year (production of oil and gas condensate in 2008 in the southern part of the Tyumen Region amounted to 1.22 million tons).

The new Urnenskoe and Ust-Tegusskoe fields will be brought into development, and an oil pipeline and oil treatment systems will be constructed. Oil production in the south Tyumen Region will reach 10 million tons a year by 2017 and 20–25 million tons a year in future.

In particular, Tyumenneftegaz, a subsidiary of TNK-BP, produced 188,872 tons of oil in January 2009 compared to the planned 186,956 tons. The operation of Tyumenneftegaz is based on the use of latest oil recovery enhancement technologies, optimization of well operation, and implementation of other geological engineering measures. Tyumenneftegaz holds licenses for use of subsoil in the south Tyumen Region, Khanty-Mansi Aotonomous Area, and Yamalo-Nenets Autonomous Area.

The overall oil reserves in the southern part of the Tyumen Region approved by the State Reserves Commission exceed 1 billion tons.