OREANDA-NEWS. TNK-BP and OAO SIBUR Holding today announced the establishment of a joint venture to process associated petroleum gas (APG) produced by TNK-BP and other oil and gas producers in the Nizhnevartovsk region.

SIBUR will own 51% of the new venture and TNK-BP will hold 49% and equally share management control.

SIBUR will transfer to the joint venture control of two gas processing plants: Belozerny and Nizhnevartovsk, and the facilities for transportation of APG to them.

TNK-BP will provide long-term APG supply to these plants. The joint venture will also purchase APG from other regional producers. The products from processing the APG will be divided as follows: TNK-BP will receive 100% of dry lean gas (DLG) and SIBUR will receive 100% of liquid products.

All supply and off take contracts will be long-term and based on agreed price formulas. They will include price revision mechanisms allowing for important market changes.