OREANDA-NEWS. The administration of the Irkutsk Region and TNK-BP announced the signing of a Social and Economic Cooperation Agreement. The purpose of the agreement, signed on December 19, 2006, is to develop stable, mutually advantageous bilateral relations on a long-term basis.

Cooperation between the Irkutsk region and TNK-BP targets further development and diversification of the region’s industry and social infrastructure, creation of jobs and raising the living standard of the people of the region.

TNK-BP committed to finance environmental and conservation activities, provide sponsorship and social investment in the areas where it operates.

The agreement envisages establishing a major new center of oil production in the north of the Irkutsk Region. The Verkhnechonskoye oil field is the core of this project. The parties agreed to establish a joint standing Working Group to develop optimal solutions to issues arising in the course of the pilot development of the Vekhnechonskoye field. Investment in field development in period of 2006—2009 may exceed $900 million.

The Agreement stipulates that the Administration of the Irkutsk Region and TNK-BP implement the regional gasification project. The total amount of capital spending in 2006 -2009 may reach $650 million.