TNK-BP's Board Endorses $1B in Investment
TNK-BP today announced important investment decisions made at the meeting of the Board of Directors of TNK-BP Limited, the ultimate holding company of the TNK-BP group of companies. The meeting was chaired by Mikhail Fridman, Executive Chairman of the Board of Directors of TNK-BP.
The Board approved investment of over $400 mln for the initial phase of the Yamal project which has the potential to become a principal production center for TNK-BP and Russia on the whole. The funds will be spent on early production activities, exploration work and construction of base infrastructure at the Suzun, Tagul and Russkoye oil fields.
The Board endorsed investing in Central Uvat, building on the success of developing the eastern part of the Uvat oil and gas province. In February 2009, TNK-BP commissioned Urnenskoye and Ust-Tegusskoye oil fields in Eastern Uvat oil which will produce 1.9 million tons by the end of the year. In 2010, TNK-BP will start development of the Tyamkinskoye field in Central Uvat. The decision follows a successful exploration and appraisal program resulting in discovery of 10 new oil fields and an over fourfold increase in the Central Uvat reserve base over three years.
The Board also endorsed the fuel quality investment program of $1.3 bn over the next five years to upgrade TNK-BP's refineries in Russia and Ukraine in line with new official quality regulations. The fuel quality program consists of 11 projects of varying timelines. The Board supported the first significant project of the progam, construction of an isomerizaiton unit at the Saratov refinery for $150 mln.
"We are pleased with the progress made by TNK-BP in the first nine months of 2009. The company has proved resilient to macroeconomic challenges and exceeded targets set in the business plan with production growth above 2.5%," said Mikhail Fridman, Executive Chairman of TNK-BP Ltd., "This gives the Board confidence to endorse a series of long-term investment decisions that underline our commitment to develop long-term sustainable business in Russia and Ukraine."
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