OREANDA-NEWS. April 22, 2008. Oilmen are using associated petroleum gas for business. Last year was very prolific for TNK-BP in the Orenburg Region. The company produced more than 17 million tons of oil – a record in the 70-year history of the oil industry in the Orenburg Region. Production grew owing to development of new fields and use of modern technologies. Increased investments strengthened the resource base of TNK-BP.

The company spent 1,3 billion rubles for these purposes in 2007 (compared with 430 million rubles spent in 2005).

The gas business of the company is moving forward in big strides. The company produced 1,7 billion cubic meters of gas last year, and the gas production volume will keep growing. The program of associated gas utilization has reached its final stage. Gas will now be sent to pipelines instead of being burned in flares all over the fields. Alexander Berman, General Director of JSC Orenburgneft, said: “In 2007, we extinguished three flares in our fields in the Orenburg Region that used to burn associated petroleum gas. This year, we are going to put out eight more flares and increase utilization of associated gas up to 75%.”

An average of 70% of associated gas is now utilized in the fields of Orenburgneft, which is one of the highest rates of associated gas utilization in Russia. TNK-BP is going to invest more than 5,9 billion rubles into implementation of its gas program in the Orenburg Region in 2008–2012. This program is aimed at reducing the volume of associated petroleum gas burned in flares and cutting down the emission payments.

“Apart from extinguishing the flares and improving the environmental situation in the region, the gas program of TNK-BP is targeted at efficient commercial use of associated gas.  The rate of its utilization will be increased up to 95% by 2011 and meet the world standards. Associated petroleum gas will be processed to produce propane, butane, and other products that will be sold elsewhere, including gas filling stations,” explained Mr. Berman.

“Responsible attitude to environmental protection and ecological problems is one of the highest priorities of our company,” emphasized Vladimir Grabovsky, Director of TNK-BP Orenburg. “We are increasing our investments into implementation of ecological projects every year. In 2007, for example, investments into environmental protection nearly doubled and reached approximately two billion rubles. These funds are used for increasing the utilization of associated petroleum gas and raising the reliability of pipelines.”