TNK-BP Launches Production at Kamennoye's Northern Hub in Western Siberia

TNK-BP launched commercial production in the Northern Hub of the Kamennoye oil field in the Khanty-Mansiisk region of West Siberia.

In 2009, Kamennoye will produce 1.8 million tons of crude, a 40% increase on the previous year. A significant rise in production volumes is ensured by commissioning of the northern part of the oil field.

In 2004-2008, investment in the Kamennoye project amounted to over $600 million. By the middle of the next decade, output from the field is expected to reach about 4 million tons a year. Kamennoye is one of the largest greenfield projects developed by TNK-BP with estimated recoverable reserves of 297 million tons by the Russian reserves classification.

"Development of Kamennoye reflects the value a private multi-national oil company like TNK-BP brings to the industry," said Mikhail Fridman, interim CEO and Executive Chairman of TNK-BP, "We unlocked the potential of another complex field which will provide noticeable contribution to Russia's oil output and create jobs and industrial contracts in the north-west of the Khanty-Mansiisk region."

"It's the third project in eight months that we have brought on stream despite the challenging economic and financial pressures facing the industry," said Tim Summers, Chief Operating Officer of TNK-BP, "Kamennoye field was given a new life thanks to TNK-BP's professional teamwork and effective technology application."

The project has been implemented in close community engagement to increase public awareness of its social and environmental components.