OREANDA-NEWS. December 13, 2011. JV PetroMonagas, a joint venture between TNK-BP (16.7%) and Venezuelan state oil company PDVSA (83.7%), expects to increase production of high viscosity oil by 10,000 bpd to 120,000 bpd in 1Q 2012. The current drilling program provides for construction of 54 new wells and employment of 7 drilling rigs, reported the press-centre of TNK-BP.

According to Jerome Auzenne, Technical and Operations Director, TNK-BP Venezuela Holding, the success of this drilling program will fully determine both improvement of project economics and evaluation of the production volumes, which requires the Project Team to address complex technical and organizational issues. 'Our synergy with the partners and establishment of good business relations will permit JV PetroMonagas and TNK-BP Venezuela to continue growing and developing efficiently', he said.

Information for Editors:
JV PetroMonagas is an integrated project that includes production of high viscosity heavy oil and its processing into lighter synthetic crude oil for export (high viscosity oil with a gravity of 8.1 °API is processed into synthetic oil with a gravity of 16 °API).

TNK-BP is Russia's third largest oil company that is owned on a parity basis by BP and AAR consortium (Alfa Group/Access Industries/Renova). TNK-BP also owns ca. 50% of Slavneft, a Russian oil and gas company. TNK-BP produces ca. 16% of the total volume of Russian oil production (including TNK-BP interest in Slavneft). The total proven reserves owned by the company as estimated according to SEC LOF methodology amounted to 8.794 Bboe as of December 31, 2010.

In October 2010, TNK-BP and BP announced their agreements on TNK-BP acquisition of the production, pipeline and power assets owned by BP in Vietnam and Venezuela for a total price of US\\$1.8 bln. The companies closed the Venezuelan asset acquisition transaction in June 2011 and officially obtained an investment license to operate Block 06.1 in Vietnam in October 2011.

In addition to that, TNK-BP signed an agreement with HRT O&G (Brazil) to acquire a 45% interest in an oil and gas project in the Brazilian region of Solimoes in October 2011.

A mention of "TNK-BP" or "the Group" means "TNK-BP International with company consolidated subsidiaries" unless the context requires otherwise.