TNK-BP CEO Comments Results for 1Q
OREANDA-NEWS. May 25, 2009. TNK-BP reported its results for the three months ended March 31st 2009, reported the press-centre of TNK-BP.
Commenting on the results, Tim Summers, Chief Executive Officer of TNK-BP, said:
“This is a strong performance, despite a very challenging environment compared to last year. Safety performance has continued to improve, production levels are higher, and investment discipline has been maintained, with healthy cash generation.
In the first quarter of 2009, the price for the Russian Urals export blend fell by 53% to US43.7 per barrel relative to the same period last year, with revenues falling by 50% to \\$6.328 billion.
We remain committed to a safer and cleaner environment for our employees, contractors and the communities in which we operate. In the first quarter of 2009, lost time injuries dropped by more than 50% while the number of high potential incidents reduced by 40% compared to the same period last year. We also increased the use of associated gas by 25%.
Production for the first quarter showed an increase of 3.9% relative to the same period last year, and included the start-up of new Uvat fields in February and increased output from the Verkhnechonskoye and Kamennoye green-fields in East and West Siberia. We have maintained our focus on the continuous development of our existing asset base, as well as investing for the longer term. In the first quarter of 2009, the exploration drilling success rate was 74%, in line with the last year levels.
Organic capital expenditure was US 711 million, 16% down on the same period last year. Operating expenses were US 885 million, a 23% improvement from 1Q 2008.
TNK-BP is committed to increased transparency and regular quarterly reporting of our financial results is another positive step in that direction.”
The first quarter 2009 financial statements of TNK-BP International prepared according to the US GAAP can be found at http://www.tnk-bp.com/investors/financial.
First quarter highlights
Lost time injuries fell by over 50% and the number of high potential incidents decreased by 40% as compared to the first quarter 2008.
The volume of associated petroleum gas utilization increased by 25% as compared to the first quarter 2008.
Oil and gas production was 1.668 million barrels per day, up 3.9% from the first quarter of 2008.
TNK-BP launched commercial production from the Urnenskoye and Ust-Tegusskoye fields in Uvat.
The new oil field, Yuzhno-Gavrikovskoye, was discovered in the northern part of East Uvat.
Thanks to continuous technological improvements, the Ryazan refinery in Central Russia has produced over 40% of gasoline to Euro-4 fuel standards and over 40% of diesel to Euro-5 fuel standards.
TNK-BP and the energy utility OGK-1 signed an agreement with the Siemens-Enka consortium to complete the engineering of the initial phase of the project to construct the third power unit of the Nizhnevartovsk state district power plant.
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