TNK-BP

TNK-BP was established in 2003 through the merger of oil and gas assets belonging to the Alfa and Access/Renova consortium and BP in Russia. AAR and BP own TNK-BP as a partnership.

TNK-BP is one of the leading oil companies in Russia. Worldwide, it is among the ten largest private oil companies by volume of oil produced. In 2010 the company produced on average 1.742 mboed. Producing assets of the company are primarily located in Western Siberia, Irkutsk Region, and the Volgo-Ural region in Orenburg Region.

The independent audit conducted by DeGolyer and MacNaughton confirmed that as of 31 December 2010 TNK-BP's Total Proved Reserves amounted to 13.1 billion barrels of oil equivalent, applying PRMS (formerly SPE) criteria. Proved Reserves constitute a Total Proved PRMS reserve replacement ratio of 322%.

TNK-BP is a vertically integrated oil company whose portfolio, in addition to producing assets, contain a number of refining and sales enterprises. Refining assets comprise the Ryazan Oil Refining Company, the Nizhnevartovsk Oil Refining Association, and the Saratov, Krasnoleninsk and Lisichansk (Ukraine) refineries. TNK-BP controls 675 thousand bbl/day in installed refining capacity. The sales network of the company includes about 1,500 filling stations in Russia and Ukraine. They work under the TNK and BP brands.

TNK-BP's strategic goals are to increase production and profitability in the long-term while ensuring replacement of reserves at no less than 100 percent of the volume produced each year. The Uvat group of fields and the Kamennoye field in Western Siberia, the Verkhnechonsk project in Eastern Siberia and the project in Yamalo-Nenetsk autonomous area and in the North of Krasnoyarsk region are key projects for expanding oil production. The company bases its mid-range strategy for broadening gas business on development of the gas and gas-condensate production assets of its subsidiary Rospan International.

In oil refinery and sales, TNK-BP's strategy is to maximize the value of the oil it produces and increase profitability of operations. It intends to fulfill those goals by modernizing its oil refining facilities, through further development of new channels for product export, and through a targeted expansion of its retail network.