OREANDA-NEWS. July 27, 2012. TNK-BP announces that the proposal made by TNK-BP top management concerning the first stage of the full-field development of the Company’s Rospan gas condensate was not approved by the Board of Directors due to lack of support from BP representatives, reported the press-centre of TNK-BP.

The recommendations for the further development of Rospan were presented by Executive Vice President for Upstream Alexander Dodds. Rospan is the key project in TNK-BP’s gas business development strategy, which was approved by the Board of Directors in September of last year. The full-field development of these license areas would allow the company to increase gas production at Rospan to 16.2 bln cubic meters per year by 2020, which represents a two-fold increase of TNK-BP gas production.

AAR-appointed directors supported management’s proposal, considering the successful execution of the project an important step in strengthening TNK-BP’s position on the global oil and gas market. None the less, management’s proposal did not receive support from BP-appointed directors.

An alternative proposal from BP’s directors was not supported.

TNK-BP management is convinced that the development of the Rospan gas condensate field is fully in line with the interests of TNK-BP and its shareholders and remains a strategically important project for the Company.

Taking into consideration the support of AAR-appointed directors, Company management intends to continue to work with BP representatives to clarify their position on this project. TNK-BP management is hopeful that its proposal will received support from BP representatives, which, in turn, will allow the Company to continue preparations for the start of full-field development of the Rospan gas condensate field.