TNK-BP Reports on Its Expansion Plans
OREANDA-NEWS. January 15, 2010. Encouraged by Orenburg’s growth, TNK-BP plans to expand its reserves base into the adjacent Samara and Saratov regions, where it holds licences for several new fields. Orenburgneft will receive US70 mln for exploration this year from its parent company — as much as TNK-BP plans to spend exploring Uvat in the southern region of Tyumen, which has been producing since February 2009, reported the press-centre of TNK-BP.
Expanding Uvat operations is a TNK-BP priority this year, with investment in the unit due to hit US 500 mln. TNK-BP will switch the focus of its operations from the eastern hub, where the Ust-Tegusskoye and Urnenskoye fields are scheduled to produce 3 mln t, to the central hub’s Tyamkinskoye field. The company has a total of 14 fields in this part of Uvat, but it is currently only commercially viable to develop four of them, Brezitsky says. The central hub’s fields should produce 1 mln tons in 2012.
Other expansion targets for TNK-BP include eastern Siberia, where it operates the Verkhnechonsk field. This project has proven more complicated and expensive than expected at the start of its development, but TNK-BP still views east Siberia as an attractive prospect — provided the government delivers tax concessions similar to the zero export duty currently applied to Verkhnechonsk crude.
TNK-BP is hoping that new tax breaks will be in place by the time its Yamal project fields are on stream. This year, it is focusing on preparing for full development of the Suzun and Russkoye fields, the first of its four Yamal fields due on stream. The firm hopes to start Suzun output in 2012, with the first heavy oil from Russkoye following in 2013. But first TNK-BP must find a transportation solution and it is hopeful that the government’s soon-to-be-approved Yamal program will offer some options.
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